Funding remains a major challenge confronting businesses of all shapes and sizes in Nigeria and the entire world. Money is the lifeblood of every business, it is the required ingredient needed to add flavour to your business.
Without adequate startup capital and constant cash flow, businesses would not be able to procure raw materials, convert them to finished products, market or distribute the finished products and even pay their employees.
As a result of this, many financial institutions have sprung up to meet the financial needs of businesses to keep them alive.
Back in the day, it was dominated solely by commercial banks but now has seen much more spurs which have brought about institutions such as venture capital firms, private equity firms, fintechs and crowdfunding platforms.
Unfortunately, many organizations, especially SMEs, cannot scale through these hurdles because of their weak structures and the inexperience of their respective founders.
This article is going to be all about how you can access startup capital for your business here in Nigeria.
How Do you Access Funding For Your Business In Nigeria?
Nigeria is home to more than 200 million people and vast land of over 1 Million SQ KM. If you ask me this is a huge market for those who want to build a brand.
Becoming an entrepreneur is easier than ever before—technology is shrinking the world, opening markets, and making it possible for many people to strike out on their own in the field of their dreams.
Here are some of the steps needed to take to start a business in Nigeria.
1. Develop a Fantastic Business Idea.
To become successful as a business owner in Nigeria, you need to come up with a business idea. Remarkable new product ideas are everywhere and there is a limitless supply of concepts waiting to be commercialized, launched and marketed.
Ideas can be small and simple, or large and complex. A passion for a subject may be the genesis of a compelling idea; derived from time enjoying a cherished hobby.
I wrote a comprehensive article on this blog on business ideas that can be started by anyone. Check out the link to the article to learn more.
2. Develop a Business Plan.
Next is to develop a business plan. A business plan is a document that outlines your business’s financial goals and explains how you’ll achieve them.
A robust and detailed plan will provide a road map for the business’s next three to five years, and you can share it with potential investors or maybe seek out funds using it.
Your business plan is the tool you’ll use to convince people that work with you or investing in your company. Every business requires a business plan to be used as a roadmap.
3. Get Incorporated.
The next step involved when seeking funds for your business in Nigeria is getting your business incorporated, and this is singlehandedly handled by The Corporate Affairs Commission Nigeria.
The body was set up by the Companies and Allied Matters Act (CAMA). Company registration in Nigeria can now be completed online using the new e-registration portal launched by the Corporate Affairs Commission (CAC).
Here are some key details that need to be taken into consideration when setting up a business in Nigeria.
1. Only one person can register a company and act as both director and shareholder where no foreigner will be involved in the company’s composition.
2. Where foreigners will be involved, a minimum of two directors will be required. And where the shareholders are individual foreigners, a minimum of two persons are required to act as shareholders for the company.
3. A foreign company can register a Nigerian subsidiary and be the sole shareholder provided that such company will appoint a minimum of two directors.
4. A private company with only local director(s) is not mandatorily required to appoint a secretary at a point of incorporation, however, a company owned by foreigners or involving foreign participation must appoint a secretary at the point of incorporation.
5. Every company must have an address in Nigeria at the point of registration (registered office address).
6. Director of a Nigerian company must be above 18 years.
7. Nigerian citizens can register a company with any authorized share capital amount; however, a foreign-owned company must have a minimum of Ten Million Naira authorized share capital to be incorporated.
4. Create a website.
If you want to show the world that your business has evolved beyond the idea stage, then it is time to invest in a professional website.
We now live in a world with more than 90% internet penetration. According to a study, 75% of online users accepted to judge a company’s credibility based on its website’s design.
In the end, people are likely to engage with a company they can trust, and the website is the stepping stone toward building that relationship.
A website is something every business should own. When people ask about the business you do, one way to refer them to your business is to show them a website.
I wrote a comprehensive guide on how you can develop a comprehensive website for your business. Check out the link to the article to learn more.
- How To Choose a Domain Name For Your Website or Blog
- What Is a Website Builder and how Does it benefit Your Business?
5. Get a Google My Business listing.
Google My Business is like a virtual phonebook and address. Not only does Google My Business make your business easier to find on Google, but online directories such as Google My Business help you to reach potential customers that would otherwise not know how to find you.
Your business information like your phone number, website, address, review ratings, hours, and more will all be available on one easy screen for a potential customer who seeks your business using Google.
Just in case you doubt the efficacy of getting your business listed via Google my business, here are some stats to justify it. More than 97% of people learn more about a local company online than anywhere else.
More specifically, 91% of adults use search engines to find information. Drill down further, you’ll find Google has over 90% of the search engine market share. Google has reported that a staggering 46% of all searches have local intent.
56% of actions on Google My Business listings are website visits. 24% of actions are called to the business. And 20% of actions are direct searches.
Google my business is the doorway of your business to the world. I wrote a comprehensive guide on how to get your business listing on Google my business. Check out the link to the article below to learn more.
6. Raise Startup Funds.
One of the biggest challenges entrepreneurs face is raising money for business ideas or growth. Unless you’re independently wealthy or have a hidden source of capital you’re going to need a helping hand.
Now the underlying issue is where exactly to start raising these funds. To help solve this, I wrote a comprehensive guide on how you can raise startup funds for your business without hassle. Check out the link to the article below to learn more.