How To Source Capital For Business Without Involving The Banks
How to source capital for business is a question I am asked all the time. This is understandable, capital is never enough. We all need more and want more.
Let me tell you right away that there is no specific way to source fund because your situation will decide how and what and where. This is how to source capital for business without involving the banks.
The banks are not very ready to give loans to their existing customers let alone a new one. And I say this is wrong.
There is no reason a new person with a good project should not get assistance even without collateral, as long as the project can pay back and the borrower has finance discipline.
This is not to say all hopes are lost. Things are changing. With the present reforms by the CBN governor, Nigerians may wake up one day and find out they can source fund easily.
So your best bet yet is still yourself or your immediate family. Many graduates have parents with 3 or 4 cars in their garage.
Such people should not find it difficult to raise a couple of hundreds of thousand to start. I assure you, if you can convince your father about a project and he is sure-footed on your financial discipline, he will fling his only car to kick-start the business.
I know because I am a father and I have sold properties to give my children good education. There is no hope for spend rifts who have no respect for money.
A good project can also get sponsors from people you do not even know. Like your parents, he wants to know that you are serious, the project is buoyant, it can repay itself quickly and above all, he can get good profit.
Like I said somewhere in the book, nobody does business because of God, they do it for one thing only—profit.
If Dangote donates N5million in a place, it is because he is expecting a business to vomit that and more in profit from the place or he is consolidating a hold.
Both will increase his group profit. So package your product and get introduced to high net individuals who is interested in such project. If it is profitable enough, he will finance it. Sure way on how to source capital for business.
Novel ideas will attract investors more quickly than ideas in already saturated field. No investor will rush into soap manufacturing with you and even pure water.
The markets are saturated , except you are attacking it from a refreshingly different angle. The black tablet soap for example. Go to green areas.
Let me warn you about ambition. Do not stat big, so that if there is a problem you can cut your loss quickly and stand up again. Big objects crumble under their weights.
Even behemoths like Guinness do not hit the whole country at a time with a product. The smaller it is, the more appealing it is to a financier and the more serious he thinks you are.
Nothing is bad with starting small, the wise men support it. They say do not test a river with your two feet.
They also say, you do not eat an elephant in a piece, you eat it piece meal. Learn from them. Besides, history is on your side.
The big ones, all of them, no exception started small. It is the law of nature.
You can also get support from organisations. For now you can get in touch with Grofin and livewireNigeria.
Reach them on http//livewire_nigeria.org/about.html . Google for them and more.
You can also get help on the internet. Get into forums.
Try and move with people who are better than you. They will pull you up. I wish you well