A lot of people own a small-medium enterprise of their own that they manage and as a result of this, they need fund to enlarge their business. Capital is the lifeline of a business. You can be in business for five years, enjoying what you are good at but the major dilemma is how to fund your new business because running a small-medium enterprise in Nigeria or anywhere else requires accessible cash to meet your needs.
Therefore, how can we raise money to fund our small-medium enterprise? Here are some of the options we can go for.
Ways of funding Small Medium Enterprise in Nigeria
- Bootstrapping: In funding small medium enterprise using Bootstrapping implies you are relying on your personal income and savings. This has to do with some of your personal savings, or friends and family fund. The next stage is obtaining funds from customers and putting it back into the business.
- Crowdfunding: In crowdfunding, you get funds from whoever is ready to fund your small-medium enterprise. Although Nigeria crowdfunding is always restricted to sponsoring health or educational pursuits, it is still a worthwhile medium for getting funds for a small-medium enterprise.
- Angel Investors: These are individuals or group who provide capital to a small-medium enterprise that is at the infant stage, generally in exchange for ownership equity. They are capable of taking your money worries away. However, your business pitch and business model must be appealing to investors.
- Partnership: A partner that’s in line with your vision can make your business grow, and they can also provide essential skills that can develop the business. Get a business partner that matches your resources and skills and you can be on your way to having a successful business.
Read Also: 6 Benefits of Small Business in Nigeria
- Small Business Loans or Grants: There are several places that give grants and loans to diverse businesses provided the necessary terms and conditions are met. We have had a series of posts of places like this where Nigerian businesses can get loans and grants.