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
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
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
- DONATIONS FROM NETWORK OF FRIENDS
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
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 BUSINESS PARTNERSHIP (SYMBIOTISM)
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
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.
- SOFT LOAN FROM MICRO FINANCE BANKS AND
OTHER LOAN AGENTS
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
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
- BORROWING FROM FAMILY MEMBERS
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.
How to Raise Capital to Start Small Scale Business of your Choice by Abel Wealth
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Abel Wealth is a professional freelancer with versed experience in content writing, Web Development, SEO and Social media marketing.