Business Financing is normally the Next stage after a great Business Idea and proper Market Testing. Most Business Idea remain a paper work because of Finance getting Problem while most had problem with investors or banks for not following having Proper Knowledge of it.
How to obtain Business Financing as an Entrepreneur
Business Finance is what every Business/ Startup will always need at one point in time only if your Business is a Money-tree farm. Tech base Team will take you through stages of getting finance for Idea after Market Feasibility
There are many different ways to acquire financing, so preparation and research will pay off well for you. Before searching for Business financing, it is a good idea to see what grant In Nigeria and subsidies you might qualify for. They could keep you from incurring debt or losing ownership. However, if you don’t find such finding available, a variety other sources of financing can help you get your new business off the ground.
We have factors you have to consider before deciding what type of financing to get for your business. Depending on the type of business you have, your future plans and products and services you offer.
There are three main type of Business Financing, each with advantages and Disadvantages
- Taking Loans
Taking Loans for Business Finance
Taking Loans is based on taking loans from banks or private individual promising to repay the borrowed funds within a certain amount of time or incur some type of liability, usually in the form of interest.
Most well capitalized businesses make use of this.
Great Companies founder around the world in the Past make use of this Method in funding their business. Investors are individual that agree to sponsor your idea and you agree to Pay them a specific amount out of the money realized, known as dividend.
There are many different types of Private investors and investment groups in Nigeria. The common is the accredited investor. These individuals are familiar with the investment world and have probably participated in such ventures previously. They have certain qualifications to make them attractive financiers. Another type is an angel investor, an individual who has the funds to almost entirely fund the Start-up, expansion or growth of a business. Both accredited investors and angel investors are Private parties who are not usually affiliated with an Investment group.
Partnership easily be call Collaboration with other Parties to achieve your Business Goals, Partnership is not only done because of Finance. Let’s take for example: Jack want to create a Startup that deals with Technology( Tech Blog like Tech base) , jack is a writer by Profession meaning he has no Programming Skills nor Graphics design skills then he decides to Partner with Graphic designers in Nigeria, Seo Analyst in Nigeria and Programmer. By doing so he is in Partnership with Them.
They share the Profit base on agreement.
Business financing is one of the vital topic that every Startup and Businesses have to face at one point and you as an entrepreneur should know the Dos and Don’ts when seeking for finance when it comes to keeping your Business in Pace