{"id":25348,"date":"2021-07-04T05:56:08","date_gmt":"2021-07-04T04:56:08","guid":{"rendered":"https:\/\/www.experts.ng\/blog\/?p=25348"},"modified":"2021-07-10T01:39:03","modified_gmt":"2021-07-10T00:39:03","slug":"capital-for-your-business","status":"publish","type":"post","link":"https:\/\/www.experts.ng\/blog\/capital-for-your-business\/","title":{"rendered":"How to Get Capital to Launch Your Business Ideas"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">After ideation comes the hard work &#8211; getting capital to launch that business idea.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You must have heard motivational speakers repeatedly saying, \u201call you need is an idea\u201d. Ermm, it doesn\u2019t always work like that in real life &#8211; you are going to need a lot more than an idea. Of course, it\u2019s the best place to start. However, there are a couple of other things you\u2019d need, and <a href=\"https:\/\/experts.ng\/blog\/start-grow-business-nigeria\/\" target=\"_blank\" rel=\"noopener\">you can check them out here<\/a>. But one of the critical things you need is capital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, how do you get that capital that will take your business from an idea in your head to reality &#8211; a <a href=\"https:\/\/experts.ng\/blog\/successful-business-africa\/\" target=\"_blank\" rel=\"noopener\">successful business<\/a>?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-raising-capital-for-your-business-a-case-study\"><strong>Raising Capital for Your Business: A Case Study<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are a couple of ways you can raise capital for your business. For Bimbo, CEO of <a href=\"https:\/\/criz-luxury-beddings-and-interiors.business.site\/\" target=\"_blank\" rel=\"noopener\">Criz Interiors<\/a>, she started her business with funds from NYSC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAfter NYSC, I used my savings to buy some bedspreads in different sizes and took to Lagos to sell\u201d, Bimbo revealed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/experts.ng\/blog\/nysc\/\" target=\"_blank\" rel=\"noopener\">See how you can also save during NYSC<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the business continued to grow came the need to expand. \u201cThere was a point I was thinking of buying in bulk and doing photoshoot for my beddings, so I needed more capital\u201d, she continued. Family members came through for her. Though it was not enough, it helped her business grow to an extent.<\/p>\n\n\n\n<blockquote class=\"instagram-media\" data-instgrm-captioned data-instgrm-permalink=\"https:\/\/www.instagram.com\/p\/CQq1-VinRPN\/?utm_source=ig_embed&amp;utm_campaign=loading\" data-instgrm-version=\"13\" style=\" background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:540px; min-width:326px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);\"><div style=\"padding:16px;\"> <a href=\"https:\/\/www.instagram.com\/p\/CQq1-VinRPN\/?utm_source=ig_embed&amp;utm_campaign=loading\" style=\" background:#FFFFFF; line-height:0; padding:0 0; text-align:center; text-decoration:none; width:100%;\" target=\"_blank\" rel=\"noopener\"> <div style=\" display: flex; flex-direction: row; align-items: center;\"> <div style=\"background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;\"><\/div> <div style=\"display: flex; flex-direction: column; flex-grow: 1; justify-content: center;\"> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;\"><\/div> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;\"><\/div><\/div><\/div><div style=\"padding: 19% 0;\"><\/div> <div style=\"display:block; height:50px; margin:0 auto 12px; width:50px;\"><svg width=\"50px\" height=\"50px\" viewBox=\"0 0 60 60\" version=\"1.1\" xmlns=\"https:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"https:\/\/www.w3.org\/1999\/xlink\"><g stroke=\"none\" stroke-width=\"1\" fill=\"none\" fill-rule=\"evenodd\"><g transform=\"translate(-511.000000, -20.000000)\" fill=\"#000000\"><g><path d=\"M556.869,30.41 C554.814,30.41 553.148,32.076 553.148,34.131 C553.148,36.186 554.814,37.852 556.869,37.852 C558.924,37.852 560.59,36.186 560.59,34.131 C560.59,32.076 558.924,30.41 556.869,30.41 M541,60.657 C535.114,60.657 530.342,55.887 530.342,50 C530.342,44.114 535.114,39.342 541,39.342 C546.887,39.342 551.658,44.114 551.658,50 C551.658,55.887 546.887,60.657 541,60.657 M541,33.886 C532.1,33.886 524.886,41.1 524.886,50 C524.886,58.899 532.1,66.113 541,66.113 C549.9,66.113 557.115,58.899 557.115,50 C557.115,41.1 549.9,33.886 541,33.886 M565.378,62.101 C565.244,65.022 564.756,66.606 564.346,67.663 C563.803,69.06 563.154,70.057 562.106,71.106 C561.058,72.155 560.06,72.803 558.662,73.347 C557.607,73.757 556.021,74.244 553.102,74.378 C549.944,74.521 548.997,74.552 541,74.552 C533.003,74.552 532.056,74.521 528.898,74.378 C525.979,74.244 524.393,73.757 523.338,73.347 C521.94,72.803 520.942,72.155 519.894,71.106 C518.846,70.057 518.197,69.06 517.654,67.663 C517.244,66.606 516.755,65.022 516.623,62.101 C516.479,58.943 516.448,57.996 516.448,50 C516.448,42.003 516.479,41.056 516.623,37.899 C516.755,34.978 517.244,33.391 517.654,32.338 C518.197,30.938 518.846,29.942 519.894,28.894 C520.942,27.846 521.94,27.196 523.338,26.654 C524.393,26.244 525.979,25.756 528.898,25.623 C532.057,25.479 533.004,25.448 541,25.448 C548.997,25.448 549.943,25.479 553.102,25.623 C556.021,25.756 557.607,26.244 558.662,26.654 C560.06,27.196 561.058,27.846 562.106,28.894 C563.154,29.942 563.803,30.938 564.346,32.338 C564.756,33.391 565.244,34.978 565.378,37.899 C565.522,41.056 565.552,42.003 565.552,50 C565.552,57.996 565.522,58.943 565.378,62.101 M570.82,37.631 C570.674,34.438 570.167,32.258 569.425,30.349 C568.659,28.377 567.633,26.702 565.965,25.035 C564.297,23.368 562.623,22.342 560.652,21.575 C558.743,20.834 556.562,20.326 553.369,20.18 C550.169,20.033 549.148,20 541,20 C532.853,20 531.831,20.033 528.631,20.18 C525.438,20.326 523.257,20.834 521.349,21.575 C519.376,22.342 517.703,23.368 516.035,25.035 C514.368,26.702 513.342,28.377 512.574,30.349 C511.834,32.258 511.326,34.438 511.181,37.631 C511.035,40.831 511,41.851 511,50 C511,58.147 511.035,59.17 511.181,62.369 C511.326,65.562 511.834,67.743 512.574,69.651 C513.342,71.625 514.368,73.296 516.035,74.965 C517.703,76.634 519.376,77.658 521.349,78.425 C523.257,79.167 525.438,79.673 528.631,79.82 C531.831,79.965 532.853,80.001 541,80.001 C549.148,80.001 550.169,79.965 553.369,79.82 C556.562,79.673 558.743,79.167 560.652,78.425 C562.623,77.658 564.297,76.634 565.965,74.965 C567.633,73.296 568.659,71.625 569.425,69.651 C570.167,67.743 570.674,65.562 570.82,62.369 C570.966,59.17 571,58.147 571,50 C571,41.851 570.966,40.831 570.82,37.631\"><\/path><\/g><\/g><\/g><\/svg><\/div><div style=\"padding-top: 8px;\"> <div style=\" color:#3897f0; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:550; line-height:18px;\"> View this post on Instagram<\/div><\/div><div style=\"padding: 12.5% 0;\"><\/div> <div style=\"display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;\"><div> <div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);\"><\/div> <div style=\"background-color: #F4F4F4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;\"><\/div> <div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);\"><\/div><\/div><div style=\"margin-left: 8px;\"> <div style=\" background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;\"><\/div> <div style=\" width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg)\"><\/div><\/div><div style=\"margin-left: auto;\"> <div style=\" width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);\"><\/div> <div style=\" background-color: #F4F4F4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);\"><\/div> <div style=\" width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);\"><\/div><\/div><\/div> <div style=\"display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;\"> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;\"><\/div> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;\"><\/div><\/div><\/a><p style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;\"><a href=\"https:\/\/www.instagram.com\/p\/CQq1-VinRPN\/?utm_source=ig_embed&amp;utm_campaign=loading\" style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none;\" target=\"_blank\" rel=\"noopener\">A post shared by Ogunsanya Abimbola (@criz_interiors)<\/a><\/p><\/div><\/blockquote> <script async src=\"\/\/www.instagram.com\/embed.js\"><\/script>\n\n\n\n<p class=\"wp-block-paragraph\">Today, Criz Beddings has metamorphosed into Criz Interiors, and the business is doing really well. It\u2019s one of the most preferred brands for everything beddings and interior designs on Instagram.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-major-take-away-from-the-case-study\"><strong>Major Take away from the Case Study<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A lot of people wait for that big stark of money before they start a business. But as you must have seen from the story above, sometimes that small money you have saved is enough to start your business. That is if you save, though.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, it\u2019s a good thing that we humans don\u2019t just fall from heaven. We all come from a family. And because of the bond we share with the people we call family, they can\u2019t look the other way when we are in need, especially when it has to do with doing something that will bring returns in the long run.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just so we are clear though, your family members don\u2019t owe you anything. Don\u2019t go about saying you read somewhere that \u201cfamily members must give you capital for your business\u201d. Absolutely no one said that. The point, however, is that you can reach out to family members for assistance, albeit with low expectations. Because at the end of the day, everyone has a \u201ccross\u201d they are bearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, that gives us two places you can get capital for your business &#8211; personal savings and family.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are there other ways of raising capital for your business?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-ways-to-raise-capital-for-a-business-idea\"><strong>Other Ways to Raise Capital for a Business Idea<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-business-grants\"><strong>1. Business Grants<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Do you know that the government give grants to support businesses? Especially small businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those who understand how economics works will attest that small and medium businesses (MSMEs) are the backbone of the economy. In its 2017 briefing note, Microsave said, \u201cMSMEs are the backbone of the economy of a country in terms of sustainable growth, employment generation, increasing trade, development of entrepreneurial skills and contribution to export earnings.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In July 2020, The Guardian reported that \u201cMSMEs contribute well over 65 per cent of employment and roughly 48 per cent to the gross domestic product (GDP) in high-income countries, while in low-income countries; they contribute about 30 per cent of employment and up to 15 per cent of GDP.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You see? Your small business is essential to the government, which explains why they would support you with grants.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Nigerian government has different grant schemes for small businesses. Some of them include; YouWin Connect Nigeria, Africa\u2019s Young Entrepreneur Empowerment Nigeria (AYEEN), Lagos State Entrepreneurs Trust Fund, and Bank of Industry (BOI).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aside from the government, private individuals and organizations also give grants to support businesses as part of their corporate social responsibilities. The Tony Elumelu Foundation is probably the most popular here. Others include; USADF grant, Shell Livewire, GroFin and so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be on the lookout for a comprehensive guide on the different grant schemes in Nigeria and how to apply. But in the meantime, <a href=\"https:\/\/experts.ng\/blog\/apply-msme-survival-fund\/\" target=\"_blank\" rel=\"noopener\">see if you are eligible for MSME survival fund<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-bank-loans\"><strong>2. Bank Loans<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s okay to take loans. In fact, some people have argued that taking loans is the best way to grow a business. This is probably because it makes you work hard, knowing you have some money to refund.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And guess what? Just like the government need your small business to succeed for the economy to grow, banks also need you to take those loans so their business can grow as well. So, it\u2019s a win-win for everybody.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nonetheless, no bank will give you money if you don\u2019t have a good credit score. Therefore, put your account in order and clear all outstanding debts before applying for business loans from banks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other things to note to stand a chance of getting loans from banks include registering with the CAC, opening a corporate account and having a standard business plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/experts.ng\/blog\/sme-loans-without-collateral-in-nigeria\/\" target=\"_blank\" rel=\"noopener\">Here are some startups that give loans to small businesses<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do you need a guide on applying for small business loans? Indicate in the comments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-crowdfunding\"><strong>3. Crowdfunding<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most Nigerians will frown at this; I know my people. \u201cA whole me I will now be begging strangers to give money to start a business. God forbid!\u201d Yes, that\u2019s what a typical Nigerian would say to this, including you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Have you heard of Kickstarter? Kickstarter is a company that is dedicated to helping people launch their business ideas through crowdfunding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a platform like this, \u201cbegging strangers for money\u201d should not be \u201cshameful\u201d. Simply visit the Kickstarter website and provide all the required information about this business idea. Do that, and absolute strangers who connect with your idea will start sending in funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The downside of platforms like this is they may not be the best for those who are into service provision. Most of the businesses that have made a significant success from Kickstarter are those with web-based products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nevertheless, whatever your idea is, make sure you clearly explain it in your pitch, so anyone who sees it gets a clear picture of what you are trying to do. Focus enough attention on the benefits of your business to those who would fund it and then to the end-user.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-angel-investors\"><strong>4. Angel Investors<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Angel Investors come in different forms and shapes. While some help startups with capital in exchange for owner equity, others invest through an investment pool. Making them another fantastic way to get capital for your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Usually, Angel Investors prefer working anonymously via the internet. Little wonder they invest heavily in tech-related businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But how do you meet Angel Investors and get them to invest in your business?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You see, Angel Investors won\u2019t walk into your room to set up a meeting with you? It\u2019s not their kind of thing. If you are serious about meeting investors, you have to step out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Attend conferences and seminars, especially the ones in your industry. Angel Investors usually make themselves accessible at events like this.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also look for them on the internet. Google is your friend. However, this may not be as effective as meeting them in person.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After meeting, you are going to need a highly impressive business pitch. These guys are approached every day for capital but trust me; they don\u2019t just throw money at everyone that comes to them. Your business pitch has to be convincing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But do you know what a business pitch is and how to write one? Do you need a guide on writing a business pitch? Leave a comment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-contest\"><strong>5. Contest<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The last and actually the least, you can raise capital for your business through contests. This is the least of them all because you honestly can\u2019t bank on this. You don\u2019t want to have a business idea lying around just because you are hoping to win some contests. Not the brightest of ideas. Of course, you should enter such contests, but not as your only hope.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Each of the aforementioned options should be carefully considered. A plan that works for one budding tycoon may not work for another. For instance, if you have a great bank manager you implicitly trust, along with a robust line of credit, a bank loan makes sense for you.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, if you have a supportive network of family and friends that are financially secure and willing to back your idea with funds, then by all means, go get that bag.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may have to combine funding options to get the best rate, but only you will know for sure. The most important thing is to find a funding option that you feel comfortable with and confident about, so you can focus on turning your business idea into a successful reality.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After ideation comes the hard work &#8211; getting capital to launch that business idea. You must have heard motivational speakers repeatedly saying, \u201call you need is an idea\u201d. Ermm, it doesn\u2019t always work like that in real life &#8211; you are going to need a lot more than an idea. Of course, it\u2019s the best [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":25453,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_3899566575_3899566575":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":"","tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[41,298],"tags":[3548,3545,816,3546,3547],"class_list":["post-25348","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bus-dev","category-financial-management","tag-angel-investors","tag-business-capital","tag-business-grants","tag-crowdfunding"],"_links":{"self":[{"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/posts\/25348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/comments?post=25348"}],"version-history":[{"count":0,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/posts\/25348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/media\/25453"}],"wp:attachment":[{"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/media?parent=25348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/categories?post=25348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experts.ng\/blog\/wp-json\/wp\/v2\/tags?post=25348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}