How to Overcome Business Start-up challenges in Nigeria: Funding
How to Overcome Business Start-up challenges in Nigeria: Funding – Are you a start-up businessman or woman? Here are tips to overcome these challenges. In fact, understanding that start-up funding is a big challenge for Nigerian young entrepreneurs, we have here several sources of early business funding.
Here also are the challenges and their solutions. They are the best options for start-up fundraising. And lastly ar what we can offer you now as a solution. Just read on. Read more about How to Overcome Business Start-up challenges in Nigeria: Funding
Startup funding is the measure taken to raise funds for a business venture. As a matter of fact, funding comes in many forms. Therefore, there are other related posts linked up for your further information in this post. Your duty, therefore, is to click on them to read. Do not hesitate also to use our mail platforms, and WhatsApp platforms – 234 8034347851 to contact us if need be.
- 1 Complete Entrepreneurship Empowerment Summit – cessummit
- 1.1 Types of Capital For How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.2 Related Topics on How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.3 Means of Raise Funds for Business Startup Businesses:
- 1.4 How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.5 The Best Options for Raising ‘start-up Fund:
- 1.6 Common Challenges of Raising Capital:
- 1.7 More Related Topics on How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.8 What we offer you on How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.9 Read Also: How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.10 Summing Up on How to Overcome Business Start-up challenges in Nigeria: Funding
- 1.11 Share this:
- 1.12 Like this:
Complete Entrepreneurship Empowerment Summit – cessummit
This is Complete Entrepreneurship Empowerment Summit. Our main goal is to bring to you information that will help you deal with your entrepreneurial challenges. Find out about us here.
In this series, we bring to your knowledge that business challenges and how to overcome them for Start-up challenges in Nigeria is multifaceted. That is why we have over ten related topics for this article; How to Overcome Business Start-up Challenges in Nigeria. Now to start with in this post are types of capital you need to start and grow your business.
Types of Capital For How to Overcome Business Start-up challenges in Nigeria: Funding
Understanding the type of business capital you need will help you know how to source. It will also help you know when to source it and how to use it.
Seed Capital: How to Overcome Business Start-up challenges in Nigeria: Funding
Seed capital is made up of all the initial amount of money you use to start your business. As you may know, most of these types of funds come from personal savings. Others come from family, friends, early shareholders or angel investors. In fact, Seed capital is typically used to support the planning of a business. Therefore, it helps the start-ups even up to the point when the company starts selling their products or services. As you can see below, this fund will not go far.
An angel investor provides the angel fund. An angel investor is also known as a private investor, seed investor or angel funder. He is usually a high-net-worth individual who provides financial backing for small startups or entrepreneurs. He does this typically in exchange for ownership equity in the company. Because this is a business startup thing, the angel investors are often found among an entrepreneur’s family and friends.
Venture capital (VC) is a form of private equity. It is a financing method by which investors provide fund to startup companies and small businesses that are believed to have long-term growth potential. As such Venture capital generally comes from well-off investors, investment banks, and any other financial institutions who see the business with growth potential. So, when you want to expand your business, ask for venture capitalists. Read more about How to Overcome Business Start-up challenges in Nigeria: Funding
The fact here is that funding businesses could be by own funds, family members and friends who will provide the seed capital as angel investors. Venture capital comes in for business growth and may come in different formal forms. Note the timing too. And now take time to go through these related topics. I encourage you to click all of them to read.
Related Topics on How to Overcome Business Start-up challenges in Nigeria: Funding
- What Growth Strategy can do for a business start-up
- How Start-ups can Overcome scaling-up Challenges
- And, How Time Management becomes a big challenge to business start-ups
- How finding right skills & Behaviors is a business start-up challenge
- Lack of Planning Kills Many Start-ups: See how
- How to Overcome Business Start-up Challenges in Nigeria: Funding
- How to Overcome Marketing & Sales Challenges for Start-ups in Nigeria
Yet, there are more related topics below. They are so separated to help your reading attitude. Now, you may begin to think that they all form a comprehensive analysis of how to stabilize and grow a start-up business. You are correct. In fact, they are solutions on how to overcome business Start-up challenges in Nigeria: So, you need them. Read on, then.
Means of Raise Funds for Business Startup Businesses:
Now depending on the level of your business establishment, here are some of the means for raising funds for business start-ups.
- Business Loans -This is where you borrow a lump sum of money that you’ll pay back over time with interest.
- Lines of Credit – Unlike a term loan discussed above, a line of credit is a preset amount of money that a financial institution like a bank or credit union has agreed to lend you. The process is that you can draw from the line of credit when you need it, up to the maximum amount set. As a form of loan too, you must pay interest on the amount so collected.
- Equity – This defines the level of ownership of a business based on the amount of capital or shares owned in the business. In most cases, equity holding determines the level of risk, liability, and benefits owed or gained in the business.
- Grants – Grants are free gifts to aid an entrepreneur. This may come from family members, friends, the government or NGOs. One peculiar feature of this is that they are never paid back and do not attract any interest or obligations.
- Crowdfunding – Crowdfunding is raising capital from a large number of people. You see, when your village meeting or church decides to sponsor your business with or without interest, reward, or equity interest, that is crowdfunding.
How to Overcome Business Start-up challenges in Nigeria: Funding
- Bootstrapping – This is a self-funding method. So, bootstrapping refers to the process whereby you start a company with only your personal savings. This, however, includes funds borrowed or invested funds from family or friends, as well as income from initial sales. In fact, such self-funded businesses do not rely on traditional or formal financing methods, such as the support of investors, crowdfunding or bank loans.
- Banks and Credit Unions. – Bank is a for-profit financial institution, while a credit union is a nonprofit. Credit union offers services like loans, checking accounts and savings accounts. Even though these are also available with traditional banks. Furthermore, Credit Unions are local and community based while banks are national or regional based. However, credit unions offer more personalized customer service than banks and allow members to have a common bond through their place of employment and where they live.
- How to Overcome Business Start-up challenges in Nigeria: Funding
- Online/Alternative Lenders. – Online lenders are alternative lenders. These are those who lend money online. They are as trusted as the ordinary bank. Recently, many has cropped up in Nigeria.
The Best Options for Raising ‘start-up Fund:
Now, which options do you think are the best for funding your business? One of the things we have highlighted in this post fr this subject matter is that you know what time to look for which type of funding. We stated above that seed capital is better funded with personal and family savings and perhaps crowdfunding.
Our reason is because most start-up struggle to survive the first three years of operation. So, this is not the time to gamble with bank loan or any other loan that has interest commitment attached to it. But bank loan is good for scaling up your business. This is How to Overcome Business Start-up challenges in Nigeria: Funding
Common Challenges of Raising Capital:
I appreciate you for reading up to this level. Now, I urge you to consider the following challenges that may hinder you raising your required initial investment fund. Then look at our related topics and what we can offer you as solutions to these challenges and more.
- A hastily made business plan may not give adequate feasibility analysis and may not be sure of the amount of capital needed to start. Our business plans do not have these challenges
- Wrong/unspecific/non-concrete business idea or non-scalable business idea or don’t have a clear vision
- Non-compliance to industry regulatory provisions
- Businesses have less knowledge about its market
- Businesses lack skilled leaders in key positions.
- Inability to secure Bank loans, Angel investors, Venture capital or Crowdfunding.
More Related Topics on How to Overcome Business Start-up challenges in Nigeria: Funding
Here are more related topics that will help your understanding of how to stabilize and grow a start up business. As you can see business challenges and how to overcome them for Start-up challenges in Nigeria is multifaceted.
- Monitoring Performance Strategies: A key to Start-up Business Growth
- How Neglecting Regulations & Compliance Hinders Growth for Business Start-ups
- When Technology & Innovations Harm Business Start-ups
- See How Narrow Client Base Restricts business Growth
- Leadership Challenges Restrict Business Start-up Growth: See how
What we offer you on How to Overcome Business Start-up challenges in Nigeria: Funding
We offer a lot of services that will help your business start up funding. We understand that it is when your business is well set up that funding become easier. So, we will help you;
- With A bankable Business Plan for all scope of operation
- Train and apply for CBN/BOI/ NIRSAL MFB AGSMEIS and other loan facilities
- Register your business appropriately with C.A.C.
- Make incorporation changes for you @ C.A.C. – change of MEMART, Director, Shareholding etc.
- Render annual returns for you @ C.A.C. and obtain other certifications/reports for you
- Apply and obtain SCUML certificate for your banking purposes
- Apply and obtain contract bidding compliance certificates for you – PENCOM, NSITF, ITF, BPP IRR, Tax Clearance certificate
- Auditing Services and Tax management services
- Apply and obtain regulatory certificates – Import/Export licenses, NCC licenses, NAFDAC certificates etc.
- And other consultancy services.
Read Also: How to Overcome Business Start-up challenges in Nigeria: Funding
Do you know that these cover other entrepreneurial interest you may desire to know about. So, click to read also;
- Free Accounting Basics For Non-Accountant Entrepreneurs in Nigeria
- UK, USA, Canada, Australia Scholarships to apply
- Foreign Scholarship maters
- UK, USA, Canada Tourist and student Visas
- Student working hours in UK
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Summing Up on How to Overcome Business Start-up challenges in Nigeria: Funding
Understanding that rising a fund for a start up business is a challenge is a big solution to this. Then studying and reading about how to overcome the Start-up funding challenges in Nigeria is a big step forward. So, in this post, we have presented the challenges and the solutions.
We have also presented what we can offer you to take care of the challenges. So, it’s your turn now to do the needful. That means contacting us for your challenges. Definitely, there must be solution we can offer. This is How to Overcome Business Start-up challenges in Nigeria: Funding
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