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Esther.Dumbiri

Five closest sources to get finances for your business ideas

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Unemployment and underemployment have become a major challenge to both the Nigerian government and the people. Sadly, many youths have lofty ideas to start up and manage their businesses, but they are hampered by the fact that they do not really know how to fund their business ideas. They often walk from one point to another in search of white collar jobs which are non-existent. If you happen to fall into this category of unemployed Nigerian youths, worry no more because I can assure you that this piece will be an opener in the end.


#1. Family and friends


One of the sources of business funds is family members and relatives. Borrowing from friends, parents, siblings, uncles, is significant and good if you come from a family where there are able and capable people to lend you.

 

Sometimes they offer such moneys without asking for interests and you don’t have to service the debt. In some families, they have meetings on how to collectively support one of their own. It is a common practice in Nigeria.

 

Therefore, one of the ways you can generate business funds, be it capital or project money, is through friends and family members.

 

Some people who are lucky to have parents who willed some properties in their names can decide to sell off some of the properties just to generate enough money to fund their business.

 

 

#2. Personal finance


One of the ways individuals can get loans is by funding it themselves. People who manage to operate a local account (mostly fixed deposit) can empty it just to fund their business.


You can also sell your shares to generate money to fund your business. It is often said that, “If you save money, money will save you.”

 

This is the most common and the best of them all because you don’t need to beg anyone for support. Traditionally, this is regarded as the best but it doesn’t mean other methods shouldn’t apply when you don’t have enough to start or support your business.

 

#3. Local co-operative societies


In Nigeria, people often join co-operative societies and borrow so as to generate business funds. They do money sharing in turns, in that a huge percentage of their savings are given to members to start business with it.

 

To achieve this, join a local co-operative in your area and understand how they operate. When it gets to your turn, they will give you huge share of their savings and with the money you can use it to fund his or her business.

 

Local co-operatives have been known over the years as one of the sources of business funds in Nigeria.

 

#4. Nonprofits / Angel Investors


Some Non-governmental organizations or nonprofits are established for the sole purpose of helping people have access to certain grants or loans.

 

NGOs are often owned by High Networth Individuals, so these philanthropists dole out certain amount of money from time to time to help people. To achieve this, you can write to Emeka Offor Foundation on info@sireofforfoundation.org.


In your letter, explain your business ideas and the need for them to sponsor your business. The challenge with nonprofits is that there are no guarantees one will get such funds.

 

Better still; write a proposal to them seeking to award you a contract for a project in the Foundation. It must not be Emeka Offor Foundation; it can be any nonprofit or philanthropic organization in your area.

 

Soliciting for funds from nonprofits is one of the sources of business funds because they often sponsor individuals.

 

#5. Partnership


When we hear names like PZ Cussons (Paterson and Zochonis) is a good example of how partnership can transform businesses. Partnership means two individuals pooling their resources and using it to fund their business ideas which may not be funded by one person alone because of the huge financial implications of such businesses.

 

To form a partnership, the two parties must trust each other and each party’s contributions must be clearly defined.

 

If you wish to get into partnership to fund your business, you must sign all necessary agreement documents with your partner. Verbal agreement is not the best for partnership.


Do away with procrastination as time waits for no one. Go out there and explore any or all of these sources of business funds and believe that your efforts shall not be in vain.

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