How I Raised My First One Million Naira ($2,817) Startup Capital
April 20, 2020 | by Admin
Just in case you are not aware, starting your own business in Africa is very difficult as there isn’t readily startup funds for young entrepreneurs. Banks are more ready to give their money to brands and companies already doing well. I remember going to the bank every day asking them for a loan but of course it didn’t work as they said “We can’t take such risks for a starter”. This is unlike here in the U.S were if you have good credit can readily have access to loan without having to burn your fingers.
I will be very practical here to tell you exactly what I did to raise my startup capital as a young entrepreneur over 7 years back . So having been disappointed by the same bank that have been banking with for over 7 years, I resorted to being innovative. I remember that night like it was today. I brought out my calculator and divided the amount of money that I needed to start into 50-100 places.
Remember that the rich always see money as “just figures” and I encourage you to start doing same today. So like I was saying I divided the money I needed to start into 50-100 places. So I found out that I needed an average of $28.16 (N10,000) from 100 sources or places. Now let me explain the trick to this. It is far easier and less scaring to be looking for $28.16 at a time than looking for $2,816 at once. I learned this very early enough and have used it as a tool to always raise funds.
Having split the money into 50-100 places,
my next step was to figure how to get this “splits and bits”
each and at a time. Yes I figured.
I took out my phone and began to write down every contact
in my phone that believe in me and can easily give me $28.16 without too many
questions and stress; Remember before now this contacts know that I’m
hard working and an entrepreneur. What’s next?…
After writing the contacts out, I wrote a text that
I was gonna send out to each of this contact.
So I pushed out the text messages individually not to them as a group.
The text was like this “Dear auntie/uncle/Friend, good day.
I hope this meet you well. Remember the last time we talked, told you
I wanted to start my own business and I’m pretty ready to do it now and will
please need your assistance. Have been able to raise $600 and I needed extra
$50 to go…”.
Now hold on before you asked me where did I just get the $600 from and how
come the $50 instead of the $28.16 I should have asked.
First I didn’t lie to say have already raised $600, as I found out that
people are prone to helping people who have already proven that they are serious.
By saying here that I have already raised $600 is to make the recipient of
my text understand that on my own have been able to raise something.
The fact is that $600 is what I call “anticipated funding” I anticipated that
the other people have reached out to will respond positively.
Yes fact is I actually raised less than $200 at that time.
This is very important as in my next article will show you the place of
“seed sacrifice” while starting your own business journey.
Now why did I ask for $50 instead of $28.16?
The fact is when raising your capital especially with a crowd funding method
like this, give it allowance.
What I mean here is that the person you ask $50 can decide to send you
$30 or even less and some will send you just exact and still some group
that will send you more as an encouragement.
Seriously I was shocked as one of the persons that I reached out to
handed me $1,408! I was overwhelmed and I’m still grateful till tomorrow…
It ended that I raised far more than what I needed. Meanwhile this very “raw”
practical method that I used is what I refer to as “Family Support and
The advantage is that since it is a free gift as it were, you are
not owing any of them and none will ask for share in the business
or the idea. Yes all you should do is to be very grateful to them
and don’t let them down by making sure you grow the business.
Just imagine the 500 contacts in your phone giving you as “little” as $10.
That’s $5,000. This is the basis of crowd funding…
My next article is “Business Seed, the ultimate sacrifice, so don’t miss it
and stay glue to this blog as I share my practical experiences with you.
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