Lack of funds is a major reason why business ideas never come to life, it can also affect growth in business.

 Here are ways small business owners (or aspiring entrepreneurs) can fund their  businesses .

2  1)      Bootstrapping –This means relying on your personal savings/finances or getting close family and friends to fund your business; bootstrapping can be a struggle for entrepreneurs but in the end, it builds them to do more with less and execute effectively. As a small business owner, bootstrapping allows your retain full control and ownership of your business, it also lets you focus on your customers so you are able to develop products/services that suit them. Entrepreneurs who are bootstrapping must endeavor to be resourceful.  Pitch your idea to close friends and family; get them to believe and invest or loan you money to fund your business venture. Be prudent and accountable with funds obtained from this source; this will encourage them support you with investment as your business expands. Companies like Coca-Cola, Apple computers and Dell computers started out as bootstrapped ventures.

3  2)      Government grants and loans – Governments sometime offer grants and loans to help small businesses start up and grow. At every point in time, requirements to access these grants/loans vary. In Nigeria, The Bank of Industry (BOI) created Graduate Entrepreneurship Fund (GEF) in 2015, this fund offers Loans to serving NYSC members across Nigeria, It is designed to support the establishment and/or expansion of enterprises created by these NYSC members. Presently, entries are being received. For more information, Visit https://www.boi.ng/graduate-entrepreneurship-fund/

4  3)      Angel Investors – These are wealthy individuals who make cash investments in startup businesses in return for equity or convertible debt. They usually come as close family or friends; they can also come through an entrepreneur’s network. Angel Investors do not necessarily invest in proven business models instead they invest in the entrepreneurs behind businesses taking the necessary risk in the startup business based on personal convictions.
     find out more about angel investors

5  4)      Venture Capitalists (VC) – Venture Capitalists are professional investors who put money in qualified startups in exchange for equity; they only take interest in businesses with proven viability looking to scale up to large numbers. Venture Capitalists are all about big opportunities, they look out for businesses that allow them cash out big after few years of investing.                                                          
     how venture capital works

6  5)      Crowdfunding – This concept involves businesses raising funds online, it is done by uploading a campaign to solicit for donations to your business via crowdfunding websites. People who connect with your “cause” pledge an amount to your startup. Kickstarter, Indiegogo and Crowdfunder are three(3) major online platforms where your business can get crowdfunding.

7  6)      Seek a line of credit from suppliers – Only businesses with good credit history are able to enjoy this, It is therefore important to maintain a good credit standing with your suppliers.

8  7)      Business competitions – Companies and Organizations put together competitions where entrepreneurs get the chance to win trainings and cash prizes for their businesses. Small business owners can take advantage of such opportunities to raise money for their businesses. A few of such competitions held annually across Nigeria include the following

a) Building Entrepreneurs Today Programme ,an initiative by Diamond Bank

b) She Leads Africa Accelerator Programme

c) Tony Elumelu Entrepreneurship Programme

d) Seedstars World Startup Competition

e) Anzisha Prize

9   8)      Trade by Barter – You can trade your skills or an asset you have in exchange for something your business needs. This is an old form of trade that helps small businesses save money, move unused inventory and find new customers. However, you cannot barter to fulfill certain business expenses like salaries and rent.

1   9)   Negotiate an advance payment from a strategic partner or customer – Depending on your type of business ,you can find a customer or complimentary business that believes in the value your business is offering and is willing to pay in advance for your products/service or product development.