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How to Raise Capital to Start Small Scale Business of your Choice

By on April 5, 2020

How to Raise Capital

Most times one of the setbacks in life people face is how to raise capital to start small scale business which can be setup right at the front of their house or even at the backyard. I always encourage people not to rent a shop first while going into business, but rather build the business before renting a shop.

So today I will be dealing on how to raise capital to start small scale business. When I’m done, you won’t have any excuse not to start that business idea or plan.

I will be showing you some tricks you can use to raise capital for your business.

Yes I will show you the little tricks you can use to get funds for financing a small-scale business which you can grow to a mega Business Empire.

When we refer to small scale businesses, we are talking about the kind of business you can start at your backyard or at the front of your house. Refer to my article on “10 SOLID BUSINESS TO START IN YOUR BEDROOM WITH LITTLE OR NO CAPITAL to have a clear idea of what small-scale business means.

Now I’ll have to dwell on the subject matter which centres on how to generate capital for that business idea.

I will be dropping the points and tricks on how to start a small-scale business without capital and see how I can develop these points for your understanding and assimilation.

Before we go any further, there is need to have in mind first the kind of business you intend going into, and also the “cost implication.”

I quoted “the cost implication” so that you keep in mind the type of business which is small scale and the one which is large scale. Any business which exceed N500,000 to finance is no longer a small scale business.

So while a recharge card business is a small scale business, starting a rice processing plant is definitely a large scale business enterprise.

So if you’re thinking of starting a large scale business, then probably this article is not meant for you, but not to worry, I would be writing on “HOW TO GENERATE CAPITAL FOR STARTING LARGE SCALE BUSINESS”. Here I will teach you how to write a proposal for partnership and apply for loans to designated banks. Be on the lookout.

Now let’s proceed.

How to Raise Capital to Start Small Scale Business of your Choice


I prioritize this trick on generating capital as the most easy and effective measure one can think of. All you need to do is have a well detailed business plan, a good network of friends and recharge card on your cell phone.

I know you are wondering what am going to write next…

Here is how it works, assuming you have a business plan or idea which the cost implication (capital) for starting it is 100,000.00, you only need 10 friends who can donate 10,000 each to you which will make it 100,000.00

Now you’ll probably be saying, but I don’t have 10 friends who can donate 10,000 to me!

How about you look for a business which is lesser, like the kind which requires 50,000 to startup? All you need is 10 solid friends who can donate 5,000 Naira each to make up the 50,000 capital or 5 friends who can donate 10,000 each, which ever.

This trick really works when you have a good circle of friends, personal reputation and the ability to convince people.

This is because, some people will want their money paid back, so you need to be able to estimate when you can pay back and keep to your words.

Now you have no excuse not to start that pure water distribution business or recharge card selling business which only cost 10,000.00 startup capital. Genius isn’t it?


Symbiotic partnership is a reciprocal business relationship wherein the parties offer proportionate efforts in setting up a business. It means two people coming together to set up a business for the benefit of each other.

Usually one of the parties involved brings up the business idea and the other finances the plan by contributing the startup capital.

So now you have that business idea and plan, but no capital to startup, all you need to do is look around for like-minds who are willing to invest in the business and share the profit. Isn’t that as easy as it can be? 

Well, I know you may be asking this; how do I get someone who can invest. Look no further, I have a long list of people and connections who are willing to enter into a symbiotic business partnership with you, just indicate interest by commenting or contact me by commenting on this post.


Another resourceful trick which people don’t know is securing soft loans from Micro Finance Banks.

Micro Finance Banks like Forties Micro Finance Bank Nigeria offers soft loans for small-scale businesses which can be repaid in 4 – 6 months. They charge reasonable interest rates that will blow your mind.

People are often scared when they hear of borrowing from Banks, well not to worry all you need is a valid ID card. Contact me and I will direct you on how to apply for the soft load and see how I can assist you accordingly.

Aside from banks there are other loan agents you can use such as Carbon, Fairmoney and Aella credits. I have used them personally and can attest to their services. Contact me if you require more information.


Another sure way of raising capital from for your business is borrowing from family members. This all comes down to your reputation and prudency; because even your siblings might not be willing to borrow you money if they feel you won’t pay back.

For this to work, you must first have to work on your reputation, self-respect and trust. I always encourage people to borrow within their family circle, instead of a bank. My reason is because the banks are there to make profit and when you default you’ll be charged more or your property will be confiscated.

On the other side, you family member might agree to lend you the money without charging any interest if they belief the business is genuine. Moreover it’s a plus to the family when you succeed.


The last option I will be dealing on today is raising capital from your personal savings. I know the economy is tough, you may probably be sacred of taking the risk of using your life savings to invest in a business you are not sure of.

I understand, at one point I felt this way too, yet the more money you stash in the banks will only make the banks richer and you poorer.

You see, one doesn’t become rich by saving money; you only become rich by investing that money.

Take a risk today and have faith!

I hope this article on How to Raise Capital to Start Small Scale Business of your Choice was useful, kindly share to encourage and educate someone.

I will appreciate comments or suggestions which can help develop this article even more.

Thank you for reading.

Abel Wealth

How to Raise Capital to Start Small Scale Business of your Choice by Abel Wealth

I also recommend this article: How to Start Poultry Farming Without Losing any Chicken

3 comments on “How to Raise Capital to Start Small Scale Business of your Choice

    1. I reside in Ebonyi state
      I’m a Dry Cleaner
      And I’ve been looking for means to get a generator that can be good for the business due to the power situation but to no avail… Customers even come to look for me in my house due to how good I’m in my job but most I don’t get to deliver on time due power situation… I’m in dye need of help if there’s any way you can help. The price of the Generator is #98,000, approximately #100k. Thank you

      1. Hi Nwafor, many thanks for reaching out.

        I understand your predicament and i wish i could help at this time.

        I would have connected you with someone who might be interested on investing in your business, but currently my location is Abuja and just as you said, you are based in Ebonyi State.

        Just keep the fire burning, you’ll find a way out.

        Warm regards!

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