Starting a business requires money. The entrepreneur needs capital to launch his business idea into existence.
Funds are needed to pay for rent or purchase land. Also, you need to buy raw materials or resellable goods. And essential simple machinery has to be acquired before any production processes can occur.
Sourcing for startup capital for business becomes an arduous task for someone with literally no money.
The question most people ask is this- How can I get money to start my business?.
I shall extensively answer this question in this article. It is quite possible to start your dream business today if you would follow any of these methods.
However, before you go in search of money, you should have already considered the nitty-gritty of the business you intend to venture into.
Your interest in the proposed business matters. This would push you going when faced with any difficulties.
You should also consider the location. Are the demands of your products high in the area? Do you have to compete with long-established, trusted, and near products ventures?.
Have a good marketing strategy. Learn to convince customers.
You should understand basic business mathematics. This includes proper accounting of production costs, determining the price of your merchandise, and filing tax returns.
Having this game plan contributes to a large extent the success of your proposed business.
Else, the reason for creating your business, which is to make a profit is forfeited.
Then, you can begin the quest to raise money to start your business.
These are 5 ways you can get a startup capital with literally no money.
1. Source for cash from family and friends
Pay a visit or make a few calls to your siblings, relations, or pals. Ask them to lend you some money.
Do not fret if any of them refuses to help you. You are not entitled to their money.
The next person might give a positive response.
Share with them your business idea, its feasibility, your game plan, and a logical repayment plan.
You could also appeal to their sentiments with a promissory note of a one-time fair share of returns. I know it sounds a little weird.
They are family and loyal friends who should have supported your cause with no strings attached.
The big picture is that you would have made them recognize a good investment for their money.
It does work!.
You can easily get money from your family or acquaintance based on the amount of money demanded, the level of trust you have built over time in areas of finances, and your past time involvement in supporting them during a crisis.
2. Secure a loan without collateral
You can also get a business loan without paperwork in Nigeria.
Most times, people get frustrated securing a loan in banks due to strict requirements such as collaterals,
tax documents and guarantors.
You can easily get loans online from Carbon, Ren money, Quick check, Fair money, Kia Kia e.t.c.
Though your initial loan may be small.
As your credit score increases, you are eligible to apply for higher loans.
3. Get free money on social media give away.
Social media is a digital platform that connects people to share their moments and join conversations.
More than uploading your images or streaming videos, sharing your thoughts, or liking a post, Social media (such as Facebook, Twitter, Instagram, YouTube etc) could help you get some money to start your business.
With an android phone and data subscription, you could get free money by participating in giveaways.
Celebrities, philanthropists, wealthy folks and social media influencers engage their followers via their micro-blogging page particularly twitter to share free money to support business and personal needs.
In August, Dele Momodu, a media personality and Founder of Ovation Magazine gave out 1 million naira each to young entrepreneurs with unique business ideas on Instagram.
The downside of social media giveaway is that it is most times based on luck.
Most times, the amount gifted is minimal.
You should follow the verified accounts of popular people, engage their posts, follow instructions (whether to trend a hashtag, follow other pages, e.t.c) and be a lucky beneficiary.
Grants are an award given by an organization or government to people to execute business ideas without an expected refund.
5. Launch a Fund Raiser
You can get money to start your business by signing up with a business fundraiser.
I would recommend you to start fundraising with GoFundMe.
Write a convincing story about your business idea and how it would be of benefit to your community.
Set a specific goal amount for your business say $200.
Share your fundraiser on your social media, at your place of worship, and within your social circle. Implore others to do likewise.
You would certainly a get donations from the public.
Kindly note that Gofundme would charge a fee of 5% from each donation you receive.
All you need is to get donations on gofundme. Register and promote your fundraiser.
Starting your business with no cash at hand or in bank hasn’t been this easy before.