Capital is essential for your dreams to become a reality as an aspiring entrepreneur who has a business idea and a plan. Most startups are funded with loans or personal savings, however, there are other ways you can get the money you need to start your own business
1. Business Grant
How cool would it be if someone were to give you money to start a business which you can retain full ownership of, and never have to worry about paying back the money? In Nigeria, there are empowerment programs where aspiring entrepreneurs can get free money known as grants to kickstart their business.
These programs are usually sponsored by the government or wealthy individuals. TEF founded by billionaire businessman Tony Elumelu, and AYEEN founded by Mr. Sumy Smart Francis are examples of empowerment schemes where aspiring entrepreneurs can get grants to start their own business.
How do I apply for grants?
Search for available grants schemes that align with your business niche and if you find any, you have to check if you meet the eligibility requirements to apply for it. if you meet the requirements, simply apply and hope you get selected. For grants schemes like AYEEN, the requirements are, you must have a business or a business idea, you must be a Nigerian and you must be eighteen years or above.
You can also follow reputable news outlets and be on the lookout for any grant scheme the government launches. One thing with the government grant schemes is that "the early birds get the worm" so you want to have your ears on the ground and act fast once there is an opportunity
2. Angel Investors
Do you have a great business idea but lack the capital required to fund it? Don't give up on your idea just yet if you haven't pitched your idea to angel investors. Angel Investors are people who are interested in giving entrepreneurs the money they need to set up a profitable business in exchange for an equity stake in the business
Where To See Angel Investors
Angel investors don't have a specific location where they just sit down all day waiting for entrepreneurs to find them. To find an angel investor, you have to go out there and look for them. Attend business trade fairs & exhibitions, visit and interact with wealthy business owners and put your networking skills to good use. Your financial advisors can also be in a good position to link you up with a potential angel investor so don't forget to ask for their help
How To Pitch Your Business Idea To An Angel Investor And Get The Capital You Need.
To get the fund you need from an angel investor, you have to come up with a convincing presentation of your idea. The investor has to see that your business idea is a profitable one and that you are enthusiastic about it. Below are how you can achieve this
A. Have a detailed plan
From the exact capital needed to the profit that would be gained, an angel investor wants to know that you have a clear business plan and have everything all figured out
B. Be Realistic
When pitching your business idea to potential investors, you should use visual images to interpret what you are talking about. This will help them understand you better.
C. Angel investors won't give their money to someone they don't believe in and if you want them to believe in you you have to first believe in yourself.
What you should do before you pitch your product or business idea to potential angel investors.
Trademark your idea or get a patent for your product if you can, to protect them from being stolen by potential angel investors
3. Donation-Based Crowdfunding
The internet has made it easier for people to get the capital they need to kickstart their businesses. Aspiring entrepreneurs can solicit for funds to start their business on crowdfunding platforms like Indiegogo, GoFundMe among many others, and get donations from a lot of people. The good thing about this is that you don't have to pay back the money and you can keep your business and profits all to yourself
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