ENTREPRENEURSHIP: 13 WAYS TO FINANCE YOUR BUSINESS WITHOUT A BANK LOAN - PART 1


Life is a battle against several brutal foes – discouragement, disappointment, depression,
setbacks, poverty, harsh business environment, bad family background, unfriendly friends,
envy, and many more.

Finance or Capital is one of the most challenging obstacles an entrepreneur has to overcome

whenstarting or expanding a business. Most start-ups need very little amount of money, yet

the Entrepreneur cannot afford it.

This is a major challenge plaguing the Enterprise in Africa. though, there have been several
attempt by several institutions, Government & Non-governmental, either to reduce or
eradicate this plague to no avail.

Starting up and building a business is no child’s play. To build a successful business, you must 
be ready to overcome the foes stated above.  Someone once said “business owners pray 
more than clergy men”. This statement is true to a large extent.  Until you see your business
as a ministry, you are not yet set to move it forward.

In raising finance for your business, there are two costs you need to consider: your personal
finance and the finance for your business.  Ignoring expenses for personal needs has made it
very difficult, if not impossible, for most people to start up and grow their businesses.  

Personal finance has to do with your basic needs, such as food, clothing, shelter, health,
transport fare, communication, and the like. These needs, if not properly addressed, can put
the start-up of your business on hold for a long time. These needs if properly attended to will
aid the facilitation of your start-up capital and the business on the long run.

Here, we are laying more emphasis on how you can finance your business without a bank
loan; a bank loan should be the last option for any start-up, due to the rigors associated with
it. Before, during and after a loan is given, most of us know what it takes.  

Financing a business can be done in several ways, but not all ways are applicable in all
economies. Some, though applicable, but very difficult to go through. A good example is
taking a bank loan in a developing economy like Nigeria.

The following do not apply or are not easy to get through in every economy: Credit card,
401(k), crowd funding, future earnings, SBA loan, microloan, home equity loan, factoring,
 and the like.

Here, we’ll be looking at some ways that can be used anytime, any day. Some of the ways
that will be discussed here may sound odd to you or even insulting to you. Please, forget
about who you are and what you know.

The earlier you bring down yourself, the better for you. Remember, delay is dangerous.
You’ll only do these things for a while. Your name, dignity, color, mind and goals will still be
intact.

 The ways  are as follows:

1.     PERSONAL SAVINGS:
Personal savings should be your first point of raising funds for your business, for it is the
best and most reliable way.  You begin from yourself before moving on to others. People
want to see how much you have committed into your business before they invest in it.
They want to know how serious you are and how much you believe in your idea or
business.

Please do not take this aspect casual, as it will affect the responses you’ll get from the people
you’ll approach.  Do all you can to put in something into your business, no matter how small.
Financing your business  yourself saves you the troubles of external harassment. With this,
you experience peace.

All the funds that come into your hands will never be enough to take care of your needs.
Attend the the pressing needs,ignore the rest of them and save. Make saving a hobby. Save
60% or at least 40% of the monies that come to you for a targeted period.

You can finance your business yourself through the following means:
 a.Salaries and wages
 b.Bonuses, contributions (daily, weekly, monthly, and so on. ).
 c. Commission sales agent. 
d.Sale or renting of personal belongings

 A.       HOW to  Earn Salaries:           
 i. Develop yourself and have skills with market value
 ii. Be good at what you do. 
iii.Have a list of at least 10 organizations you can approach for employment. 
iv. Approach them with all readiness and Sell your skills.  
v.  Be a problem solver in any organization you find yourself. 
vi. Sell your ideas – be creative in discharging your duties.

NOTE: Give yourself a deadline. Remember, you have a project to executive; don’t get
carried away by the pay pack.

There’s this min-fast food outlet I used to eat somewhere around my former office. The
business owner told me when she got the idea she had to work as a Nanny for 3 years to
raise capital for the business. She started the business as a 'Booker' and has been in the
business for over 7 years today.  Money at her level & taste is never a problem; she has
more than enough customers.

She took the bull by the horn and never waited for anyone to give her the start-up capital.

B. Wages: There are places you can earn wages -building site, factories, etcetera. They pay hourly in these places. Decide to give away a certain number of hours daily in exchange for money.

At the end of the day, when you see how much you have saved through your effort, you’ll be glad you took this decision.  Also, your expertise in a particular field can be paid for, on hourly basis, by some organizations. Look for such organizations and identify with them.

C. Contributions: This can be done daily, weekly, bi-monthly, monthly, and the like. If you do not have a source of income, this is not for you, as you may not be able to meet up with the demands associated with it. This is ideal for business owners, salary and wage earners. 

D.  Commission agent: Sell someone else’s products or goods for a commission or ‘cut’. You can be a commission agent in almost every product, such as real estate, wears, food, health products, etc. 

E. Freelancer: You can become a freelancer in Teaching, writing, editing, graphics, proof reading, public speaking, virtual staff, and so on. If you can take any of these skills or a combination seriously, you’ll be amazed at how much you’ll make in a short while.  

F.     Personal belongings: You can raise money through personal belongings such as: landed properties, Automobile, Jewelries, Shares, Electronics, Machines, etc. Some can be rented out or can be sold out in extreme cases.   

HOW TO MOVE UP FROM ZERO LEVEL:
This is a critical level in a man’s life. Maybe you have a sound business idea but can barely
afford a meal, let alone other things that can facilitate the activation of your idea. Though an
extreme case, but can be surmounted, if only you can take some drastic steps, rather than
engaging in wishful thinking.

Look within; you’ll realize you have skills and ideas that you can exchange in immediate
environment for money or food.  Food is the first basic need of man, under God, and as such
should be treated with utmost importance.  A hungry man can barely think straight. He’s
almost like a sick person.

 Now, take a look at your immediate environment and write down at least 10 businesses you
can work with (including factories and building sites).  

Go to each of the business owners on your list and discuss with them.  First of all, approach
the businesses you can work in your area of strength. Offer to work for free, in the worst
case scenario. One might be saying , “I don’t have what to
at, yet you’re saying I should offer to work for free”. Offering to work for free is the easiest
way of joining any business.

Moreover, the business owner will not ignore your needs totally. No matter how hardened
he/she is, your stomach will not be ignored, pending on how serious you are with the job. Over
time, you’ll begin to earn from the business, either through your own genuine effort or
allowances from the business owner.  

1Make sure your creative ability comes to play on the job. 

2Work with integrity. Don’t cut corners. 

3Put in your very best. Your impact should be felt. 
                
Think and work on the job like an entrepreneur.

Be diligent.

Always have your goal at the back of your mind.

 Write your goals and deadline. Paste it in your apartment where your eyes easily get to.

  Be determined to move up.

Get a physical mentor. 

 While working, open your eyes to the details in the business.

 Don’t stay too long.

Aside the factories and building sites, you can do any kind of job, as long as you’ll be paid
after putting in the required hours daily. Make sure your jobs are always thorough.

Now for the big boys and girls who think they are too big for any kind of job, the more puffed up
you are, the more time you waste that can never be recovered.

Please, swallow your pride and do something so you can launch out; your generation is waiting
for you. Some people’s successes are tied to yours. Act now!

To be continued…

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