The most important aspect of any business is Capital. Many are swimming in the ocean of poverty today for lack of idea of what to do to raise money for their dream business.
If you have an idea for a business that can take you out of your financial prison, then here is an article on how to raise money for business to actualize your dream.
- Personal Saving
- Sales of Properties
- Training and Teaching
- Non-Capital Based Business
- Angel investors
- OPM (Other Peoples’ Money) Formula
- Daily Contribution
- The Igbo Style
- Lower Your Standard for the Sake of Your Business
- Buy in Bulk
- Cut Down on Ceremonies and Celebrations
- Have a Financial Mentor
Today, it is becoming increasingly difficult for people to save out of regular income. You hear people say, ‘how do I save from something that is not even enough?’ It has been established that if a man cannot save when his salary is just three digits, he will still not be able to save if it is increased to five, six, or seven digits.
Thanks to PiggyVest today, you can sign up with my link here and get ₦1,000.00 to start your own savings journey
Sales of Properties
I watched an interview with Tope Awotona recently on how he sold all his properties and used the proceeds to start his Company Calendly. I mean, what if the company fails? Well today at the time of writing this blog post, Calendly is valued at $3 Billion.
The idea is; to fund that dream business, you can sell that iPhone, sell that expensive TV, you can’t have a very viable business opportunity and be wearing very expensive stuff like shirts, and shoes.
Let me ask, what is the benefit of a $100 Shoe to a man who has no vision of future financial security?
A partnership is another way of getting your dream business off the ground. You have the idea; I have the money, then let us work together. For the purpose of small business, you can go into partnership with a few other persons.
Five people can partner together to start a business of Hundred Thousand Naira with everyone contributing just Twenty Thousand Naira. But take these pieces of advice. Do not base the strength of your partners on the amount of money they contribute.
Training and Teaching
There are things you can do to raise money to fund your dream business. In the business arena, we call this “sales of expertise”. If you are good at a particular skill, you can train others and charge a token. The money realized from the sales of your expertise can be used to fund your business.
A friend of mine raised over N300,000 in 2019 by training people on How to create Amination Video using smartphones and I know many that have done this successfully.
Non-Capital Based Business
There are side hustles you can start without the need for money and let me tell you this story to let you know I am not just bluffing.
In 2018, I would go to car dealers to market their cars for commission, take pictures of the cars they have for sale, and start promoting them.
Angel investors in the business cycle are wealthy individuals who have a special interest in your dreams and can do some things to make them come to fulfillment. People like this just give you capital to start the business without expecting anything in return.
They are called by different names such as relevant helpers, angel investors, or destiny supporters. Every individual should pray to have more of such people in his or her life.
OPM (Other Peoples’ Money) Formula
Other Peoples’ Money is also a good source of funds to start a business. You can find buyers for a particular product and ask them to make a down payment. I have friends that do this, they call this ‘Pre-order’
This, however, is simply a function of trust and if they trust you, you have a way of minting money for life.
You must however not abuse this opportunity, otherwise, the opportunity may be permanently closed and you return to poverty.
There are Non Governmental Organisations that are supporting personal and group initiatives. Just look around you, interact with people and check for them on the internet to know their requirements.
Nigerian Billionaire Tony Elumelu has an Entrepreneurship Program every year to help Entrepreneurs and you can visit this link
This is ‘ajo’ in the Yoruba language or ‘Osusu in the Igbo language. If you have a dream business and do not have enough money, you can join daily, weekly or monthly contributions. You may use this method to raise business capital or boost your already existing business.
The Igbo Style
Igbos have a system that has worked overtime where you work with an already established businessman or woman under an agreement that at the expiration of your service time, he or she will get you established.
The arrangement here is that instead of working to get paid each month, a substantive part of your wages is kept for you till the end of your service agreement, after which the businessman will add some money to it and establish your own business for you.
Lower Your Standard for the Sake of Your Business
Assuming you have been paying say N500,000 for a flat of 3 bedrooms, moving into a one-room apartment may just save you about N300,000. Let me ask you, what is an unmarried young man doing in a 3 bedroom apartment when he has no reasonable job and no business?
To some, this is a demotion, but I say no. In business, the word is called downsizing and reorganization.
In the world of empowerment, it is called delayed gratification. It is just for a little time. As soon as your business takes footing and you have sufficient money, you may choose even to buy a whole building and begin to live in a palace or castle.
Buy in Bulk
Units of every item definitely cost more than the pack. Anytime you buy in quantity, you save some money. Decide to buy things in larger quantities from now on. Where you do not need all the quantities, then share with other people.
The money saved here can be used for something better, in this case, business.
Cut Down on Ceremonies and Celebrations
One major cause of poverty in this part of the world is the amount of money people waste on ceremonies.
Sometimes, the planners of these events even borrow money to impress people. Wedding, burial, naming, birthday, graduation, and a host of such can be moderately celebrated to have some reserve for what is more important – investment.
Have a Financial Mentor
A financial mentor is someone known to you and who has good knowledge of finance and financial transactions. His piece of advice that comes at the right time may just be all you need to enter into the club of the wealthy few.
You share your dream with him and he helps you sharpen it and empowers you to move on. He sometimes connects you with relevant people in the world of business.
Everything I have said has to do with how to make money for your business. However, I should let you know these things that are greater than money which you must be careful about as you go in pursuit of money.
God – If you make money without knowing God, you are the most foolish man on earth.
Good health – if in the pursuit of money you lose your health, there is no gain in it
Credibility – Good name is better than riches, remember! Any business that cast a stain on your credit is no business.
Relationship – Many have lost their homes, and the good touch they have for their loved ones while running after money. Do not be a victim.
Peace of mind – If you make money and lose your peace you are not wise
Freedom – in search of money, many are in prison, don’t be the next