Starting a Business IV – Akan Imoh

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Hi guys, its been a long long while. I took a break for more than a week. Make una no vex. I’m back here today.

Today, I want to talk about the concept of finance in a small scale business. One of the major problems facing any entrepreneur is how to raise money to start up. Capital is a major issue. Very very major. But, if you’ve been following this series from the beginning, you’ll realize that the first thing you need isn’t money. I’ve been talking about a whole lot of things that are important. Money is just coming up now.

So let’s ride.

Don’t get a loan. Please. I beg you. Don’t fall into this trap. Especially in our present day Nigeria. Entrepreneurship is too big a risk. Don’t take any loan. My biggest advice to you is to grow organically. See, my brother, some of you might argue with me that what if you’ve done your feasibility study, and have a strong business plan and all, and you think that if you take a loan, you’ll be able to pay back. Well, I wish you the best of luck. Don’t forget that we are in Nigeria. No feasibility study is ever accurate.

We don’t have statistics in this country. There’s no data for anything. If you do business in this country, My brother, it is by the grace of God. You can’t even make accurate forecasting. There are too many forces agaisnt you. From the crazy taxes to bad electricity to poor transportation to weak internet to sheer poverty in the land. Entrepreneurship is a massive risk. So, why give yourself heart attack again by going to take a loan.

In fact, the banks wouldn’t even give you loans. Hehehe. That’s how messed up we are here. Just say that you’re an entrepreneur, the banks will shut their doors in your face.

So, man up and look for other ways to finance your startup.

My best strategy to do this is what is known as Crowd Funding. This is how I’ve gotten capital to fund all my businesses till date. I’ve never taken a loan from any bank. I don’t think I’m ready for that now.

But, you can’t Croudfund without what is known as Reputational Capital.

So, let’s meet here tomorrow by 10am to discuss more on these.

Love you guys.


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