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How to raise capital for your small business
or startup company in Nigeria
Financing is one of the significant difficulties going up against organizations of every kind in
Nigeria and across the world. Finance is the soul of each business. Without sufficient money
inflow, organizations would not have the option to obtain unrefined substances, convert them to
completed items, market or appropriate the completed items and even compensation their
representatives.
Accordingly, numerous monetary establishments have jumped up to meet the monetary
requirements of organizations. Once overwhelmed by business banks, Nigeria's monetary
administrations industry and business subsidizing scene presently brag of different
establishments, for example, investment firms, private value firms, fintechs and crowdfunding
stages. This features the development of the business in the nation and gives business visionaries
and business directors an assortment of subsidizing choices for their undertakings.
Notwithstanding this turn of events, numerous organizations, particularly new businesses and
SMEs, are as yet unfit to really raise cash-flow to stay a going concern - or even take off in any
case. This is somewhat because of the tough estimates set up by these asset suppliers to
guarantee that their restricted capital is made accessible to associations and put resources into
projects that will hypothetically ensure the best returns.
Sadly, numerous associations, particularly SMEs, come up short on ability to scale through
these obstacles on account of their powerless constructions and the administrative freshness of
their authors and administrators. Recorded beneath are a few techniques that beginning phase
business visionaries and business administrators can take on to make their organizations more
alluring to agents.
The Preliminary Steps
1 Write down your business plan: The accentuation here is on "compose." It isn't to the
point of having your marketable strategy in your mind; you additionally need to record it some
place. Obviously, data put away in memory can become fluffy after some time. Recording it will
forestall this and furthermore make it more straightforward for you to calibrate your thoughts and
plans whenever the need emerges.
2 Register your business with the Corporate Affairs Commission (CAC) and other important
bodies.
3 Open a business bank account: Maintaining a business with an individual or individual
financial balance is one of the most well-known business the board infractions in Nigeria.
Disregarding the various arrangements set up by the public authority and the business-
accommodating record items carried out by business banks to put this, numerous business people
down still maintained their organizations with their own records, generally to sidestep charges
and, once in a while, for authoritative comfort. Doing this will make it challenging for financial
backers to sort out how well your business is performing on the grounds that your business money
will become jumbled up with your individual accounting.
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4 Build an online presence for your business to grow its scope and make it simpler for
your ideal interest group to interface with you from anyplace on the planet.
5 Acquire sound accounting and financial management skills or hire a
competent accountant or financial manager: Most beginning phase business people
are handymen, filling differing roles as their organizations endeavor to acquire foothold. The
money capacity of business the board is one that should not be messed with. First off, financial
backers will evaluate your organization's monetary wellbeing prior to submitting their assets to it.
A monetary administrator or bookkeeper or the sound information on monetary administration
and bookkeeping will assist you with appropriately allotting monetary assets in your organization
for top productivity.
6 Get the right co-founder(s) and/or management team: Assuming you are looking
for a high end venture, you genuinely must get the ideal supervisory crew ready. Financial backers
need to be guaranteed that there is something else to your business besides you and that the
organization will keep on existing regardless of whether you exit. Get a cofounder(s) or
supervisory crew that will supplement your abilities and experience. For example, assuming you
are great at programming advancement, however terrible at business the executives, get a fellow
benefactor who is great at business the board.
Fundraising Proper
7 Determine your exact funding need: You can do this by projecting your business'
short-to-medium-term monetary execution, which is likewise alluded to as monetary guaging.
8 Know the types of funding available: Obligation financing - Debt financing promptly
strikes a chord when most business visionaries consider subsidizing. Obligation capital is any cash
acquired that should be reimbursed, ordinarily with a premium, at a concurred later date or span.
It is generally normally presented by business and microfinance banks. Obligation capital is
appropriate for organizations with monetary footing and guarantee. It isn't appropriate for
beginning phase organizations or organizations with lacking incomes and guarantee.
Value financing - Equity financing includes bringing capital from financial backers up in return for a
stake or offer in your business. It is more costly than obligation capital since it weakens your
proprietorship and requires offering customary monetary returns (like profits) to financial backers
or investors. Commonplace wellsprings of value financing are private backers, investment firms,
private value firms and the securities exchange. It is generally used by new companies with high
development possible that need to scale exceptionally quick or enormous enterprises that need to
grow. It isn't great for organizations that need to develop gradually and consistently.
Mixture financing - Hybrid financing, for example, mezzanine financing, joins components of
obligation and value financing. It isn't quite so normal as obligation or value financing in Nigeria.
Awards - While most sorts of subsidizing include a few type of compromise, you are not relied
upon to take care of an award or surrender a stake in your business for it. Awards are typically
given to organizations that are now making or will probably have a positive social effect.
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9 Identify the right funding source or mix of sources: Bootstrapping - Most
organizations take off by bootstrapping, which basically involves subsidizing a business with the
business person's very own pay and investment funds, as well as commitments from her loved
ones. This financing source can't support a business with grand development desires over the long
haul.
Organization - In this plan, a business visionary with deficient assets goes into an association with
somebody who then, at that point, gives the required assets in return for a stake in the business
and additionally a portion of the benefits understood. This method is full of various dangers, like
conflicts between the accomplices over the bearing of the business. Like bootstrapping, it isn't
reasonable when done on a casual premise.
Business banks, microfinance banks and shipper banks - These sorts of banks are the most well-
known institutional wellsprings of obligation capital for private companies and new businesses in
Nigeria and all over the planet.
Private backers, financial speculators and private value firms - Angel financial backers, investors
and private value firms are the significant conventional wellsprings of value capital for beginning
phase and development stage organizations. They are profoundly specific, however, and would
ordinarily finance under 10% of the organizations that apply to them for subsidizing.
Business hatcheries and startup gas pedals - Business hatcheries are associations that assist
business visionaries with refining their business thoughts, plans and models, while startup gas
pedals are associations that assist organizations with currently approved least practical items to
scale quickly. Both give some type of monetary help throughout their intercession.
The securities exchange - No gratitude to different guidelines, raising capital through the securities
exchange is practically the selective protect of enormous enterprises.
Crowdfunding - Crowdfunding includes raising business capital from countless individuals who
each contributes a limited quantity of cash, ordinarily through crowdfunding stages like
GoFundMe and Indiegogo.
Business thought and marketable strategy contests - Entering a business rivalry can be a shrewd
course to raising capital for organizations with game-changing, profoundly creative and sway
arranged arrangements as most business contests accompany monetary motivators.
Non-benefits and social advancement associations - Many associations in these classes offer
awards to organizations in underserved networks and the green economy.
The public authority - Governments at the administrative and state levels once in a while offer
low-interest credits and awards to promising organizations in a bid to invigorate the economy.
Cryptographic forms of money and decentralized money - Entrepreneurs can likewise raise
business capital by selling computerized resources or tokens, which is known as an underlying coin
offering (ICO). However, the discussion encompassing digital currencies and decentralized money,
as well as successive government clampdowns make it one of the least secure financing choices
for organizations.
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Settlement ahead of time - You can have your clients store your business by getting them to pay
forthright for a help or item that you have not yet conveyed and utilizing the cash to really offer
the assistance or produce the item. This is the place where your social capital becomes an integral
factor. Your clients will be more ready to pay you for a help not yet appreciated assuming that
they can vouch for yourself and in the event that your image has a decent history and notoriety.
10 Prepare your pitch deck or grant proposal: Since you have recognized the right
subsidizing source or blend of hotspots for your business, the following stage in your journey to
raise capital will be to set up a pitch deck. A pitch deck is a brief archive that provides financial
backers with a depiction of your organization. It ordinarily comes as a show material (like
Microsoft PowerPoint), yet it can likewise be a text-based archive (like Microsoft Word). The
option in contrast to a pitch deck while applying for an award is an award proposition. In the
event that you are moving toward an award supplier, guarantee you feature the social effect of
your plan of action, item or administration in your award proposition. On the off chance that you
are moving toward a financial speculator, guarantee you center around advancement and
feasibility in your pitch deck. In the event that you are moving toward a bank, guarantee you
grandstand great income and potentially the presence of security. Etc.
11 Apply for funding: All that is left for you to do now is to go over your pitch deck or award
proposition by and by (ideally with somebody with experience in raising capital) and approach a
financial backer with your subsidizing demand. Whenever you have sorted out the kind of
subsidizing that your business needs (obligation or value or crossover or award), you can apply to
however many agents that give it as could be allowed. However, guarantee you tailor your
application to every one. Doing this will offer you the chance to carefully select in the event that
you get various offers.

Unformatted Attachment Preview

How to raise capital for your small business or startup company in Nigeria Financing is one of the significant difficulties going up against organizations of every kind in Nigeria and across the world. Finance is the soul of each business. Without sufficient money inflow, organizations would not have the option to obtain unrefined substances, convert them to completed items, market or appropriate the completed items and even compensation their representatives. Accordingly, numerous monetary establishments have jumped up to meet the monetary requirements of organizations. Once overwhelmed by business banks, Nigeria's monetary administrations industry and business subsidizing scene presently brag of different establishments, for example, investment firms, private value firms, fintechs and crowdfunding stages. This features the development of the business in the nation and gives business visionaries and business directors an assortment of subsidizing choices for their undertakings. Notwithstanding this turn of events, numerous organizations, particularly new businesses and SMEs, are as yet unfit to really raise cash-flow to stay a going concern - or even take off in any case. This is somewhat because of the tough estimates set up by these asset suppliers to guarantee that their restricted capital is made accessible to associations and put resources into projects that will hypothetically ensure the best returns. Sadly, numerous associations, particularly SMEs, come up short on ability to scale through these obstacles on account of their powerless constructions and the administrative freshness of their authors and administrators. Recorded beneath are a few techniques that beginning phase business visionaries and business administrators can take on to make their organizations more alluring to agents. The Preliminary Steps 1 Write down your business plan: The accentuation here is on "compose." It isn't to the point of having your marketable strategy in your mind; you additionally need to record it some place. Obviously, data put away in memory can become fluffy after some time. Recording it will forestall this and furthermore make it more straightforward for you to calibrate your thoughts and plans whenever the need emerges. 2 Register your business with the Corporate Affairs Commission (CAC) and other important bodies. 3 Open a business bank account: Maintaining a business with an individual or individual financial balance is one of the most well-known business the board infractions in Nigeria. Disregarding the various arrangements set up by the public authority and the businessaccommodating record items carried out by business banks to put this, numerous business people down still maintained their organizations with their own records, generally to sidestep charges and, once in a while, for authoritative comfort. Doing this will make it challenging for financial backers to sort out how well your business is performing on the grounds that your business money will become jumbled up with your individual accounting. 4 Build an online presence for your business to grow its scope and make it simpler for your ideal interest group to interface with you from anyplace on the planet. 5 Acquire sound accounting and financial management skills or hire a competent accountant or financial manager: Most beginning phase business people are handymen, filling differing roles as their organizations endeavor to acquire foothold. The money capacity of business the board is one that should not be messed with. First off, financial backers will evaluate your organization's monetary wellbeing prior to submitting their assets to it. A monetary administrator or bookkeeper or the sound information on monetary administration and bookkeeping will assist you with appropriately allotting monetary assets in your organization for top productivity. 6 Get the right co-founder(s) and/or management team: Assuming you are looking for a high end venture, you genuinely must get the ideal supervisory crew ready. Financial backers need to be guaranteed that there is something else to your business besides you and that the organization will keep on existing regardless of whether you exit. Get a cofounder(s) or supervisory crew that will supplement your abilities and experience. For example, assuming you are great at programming advancement, however terrible at business the executives, get a fellow benefactor who is great at business the board. Fundraising Proper 7 Determine your exact funding need: You can do this by projecting your business' short-to-medium-term monetary execution, which is likewise alluded to as monetary guaging. 8 Know the types of funding available: Obligation financing - Debt financing promptly strikes a chord when most business visionaries consider subsidizing. Obligation capital is any cash acquired that should be reimbursed, ordinarily with a premium, at a concurred later date or span. It is generally normally presented by business and microfinance banks. Obligation capital is appropriate for organizations with monetary footing and guarantee. It isn't appropriate for beginning phase organizations or organizations with lacking incomes and guarantee. Value financing - Equity financing includes bringing capital from financial backers up in return for a stake or offer in your business. It is more costly than obligation capital since it weakens your proprietorship and requires offering customary monetary returns (like profits) to financial backers or investors. Commonplace wellsprings of value financing are private backers, investment firms, private value firms and the securities exchange. It is generally used by new companies with high development possible that need to scale exceptionally quick or enormous enterprises that need to grow. It isn't great for organizations that need to develop gradually and consistently. Mixture financing - Hybrid financing, for example, mezzanine financing, joins components of obligation and value financing. It isn't quite so normal as obligation or value financing in Nigeria. Awards - While most sorts of subsidizing include a few type of compromise, you are not relied upon to take care of an award or surrender a stake in your business for it. Awards are typically given to organizations that are now making or will probably have a positive social effect. 9 Identify the right funding source or mix of sources: Bootstrapping - Most organizations take off by bootstrapping, which basically involves subsidizing a business with the business person's very own pay and investment funds, as well as commitments from her loved ones. This financing source can't support a business with grand development desires over the long haul. Organization - In this plan, a business visionary with deficient assets goes into an association with somebody who then, at that point, gives the required assets in return for a stake in the business and additionally a portion of the benefits understood. This method is full of various dangers, like conflicts between the accomplices over the bearing of the business. Like bootstrapping, it isn't reasonable when done on a casual premise. Business banks, microfinance banks and shipper banks - These sorts of banks are the most wellknown institutional wellsprings of obligation capital for private companies and new businesses in Nigeria and all over the planet. Private backers, financial speculators and private value firms - Angel financial backers, investors and private value firms are the significant conventional wellsprings of value capital for beginning phase and development stage organizations. They are profoundly specific, however, and would ordinarily finance under 10% of the organizations that apply to them for subsidizing. Business hatcheries and startup gas pedals - Business hatcheries are associations that assist business visionaries with refining their business thoughts, plans and models, while startup gas pedals are associations that assist organizations with currently approved least practical items to scale quickly. Both give some type of monetary help throughout their intercession. The securities exchange - No gratitude to different guidelines, raising capital through the securities exchange is practically the selective protect of enormous enterprises. Crowdfunding - Crowdfunding includes raising business capital from countless individuals who each contributes a limited quantity of cash, ordinarily through crowdfunding stages like GoFundMe and Indiegogo. Business thought and marketable strategy contests - Entering a business rivalry can be a shrewd course to raising capital for organizations with game-changing, profoundly creative and sway arranged arrangements as most business contests accompany monetary motivators. Non-benefits and social advancement associations - Many associations in these classes offer awards to organizations in underserved networks and the green economy. The public authority - Governments at the administrative and state levels once in a while offer low-interest credits and awards to promising organizations in a bid to invigorate the economy. Cryptographic forms of money and decentralized money - Entrepreneurs can likewise raise business capital by selling computerized resources or tokens, which is known as an underlying coin offering (ICO). However, the discussion encompassing digital currencies and decentralized money, as well as successive government clampdowns make it one of the least secure financing choices for organizations. Settlement ahead of time - You can have your clients store your business by getting them to pay forthright for a help or item that you have not yet conveyed and utilizing the cash to really offer the assistance or produce the item. This is the place where your social capital becomes an integral factor. Your clients will be more ready to pay you for a help not yet appreciated assuming that they can vouch for yourself and in the event that your image has a decent history and notoriety. 10 Prepare your pitch deck or grant proposal: Since you have recognized the right subsidizing source or blend of hotspots for your business, the following stage in your journey to raise capital will be to set up a pitch deck. A pitch deck is a brief archive that provides financial backers with a depiction of your organization. It ordinarily comes as a show material (like Microsoft PowerPoint), yet it can likewise be a text-based archive (like Microsoft Word). The option in contrast to a pitch deck while applying for an award is an award proposition. In the event that you are moving toward an award supplier, guarantee you feature the social effect of your plan of action, item or administration in your award proposition. On the off chance that you are moving toward a financial speculator, guarantee you center around advancement and feasibility in your pitch deck. In the event that you are moving toward a bank, guarantee you grandstand great income and potentially the presence of security. Etc. 11 Apply for funding: All that is left for you to do now is to go over your pitch deck or award proposition by and by (ideally with somebody with experience in raising capital) and approach a financial backer with your subsidizing demand. Whenever you have sorted out the kind of subsidizing that your business needs (obligation or value or crossover or award), you can apply to however many agents that give it as could be allowed. However, guarantee you tailor your application to every one. Doing this will offer you the chance to carefully select in the event that you get various offers. Name: Description: ...
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