Capital they say is the bloodline of any business; lack of funding remains one of the major problems facing many aspiring entrepreneurs and business owners alike, truncating their entrepreneurial and business dreams.
Knowing how and where to access various sources of funds is a critical skill set every entrepreneur or business owner must have, and the starting point is knowing where to turn to – information & guidance through the rigorous process.
During one of our recently held Access2Funds Workshop for TBWF, Lagos; a participant asked me:
So how do I get funding for my idea, seeing that I do not have collateral?
The answer I gave to her during the training plus how I got/raised my own startup capital is what we I will be sharing in this write-up. I hope you find it an interesting read. Enjoy:
GEOLOGY but no Oil:
I left the higher institution some few years haven studied geology but made the kind of grade makes my employment in the oil and gas industry very distant.
Immediately after my service year in east, I hurriedly moved back to the economy powerhouse of Nigeria (eko city – if you know what I mean) and took my destiny in my hands.
My first official post graduate employment was a teaching job in Maryland, Lagos; the pay was just sufficient to keep body and soul together, at least for a fresh-graduate like me; been able to move out of the unemployment statistics was exciting plus the fact that I can now work and earn felt cool. But like any young fresh graduate at 24year, I wanted more. I had dreams. I needed something big! Real BIG.
Nothing was forthcoming for months, so I got tired and left the school because it was not allowing me do proper job prospecting and attend interviews.
Jonne Walker in Consulting:
It was one of those CV my hands –job hunting days, that I stumbled into a large crowd on a Saturday morning. I was quick to sense what was happening or about to happen, shortlisted applicants awaiting interview. Even though the company was no longer accepting applications, I waited just for the fun of it, hoping to be attended to or sent away.
I was quick to ask the previous guys about what kind of questions they asked, what the name of the company is and what they are into. The only thing I remember I heard was “Venture Capitalist”
Like many applicant who were waiting to be interviewed we wonder: Who were, or What is Venture Capitalist? I was confused but as a sharp Ikeja brought-up, given the large crowd, I quickly dashed to the nearest cyber café (no BB or mobile internet then) and studied anything on Venture Capital in Nigeria and abroad.
Fortunately it got to my turn, surprised that I didn’t apply for the job, nor was I invited for the interview, the panelist was pleased in my little knowledge of the company industry and curiously took on risks and landed me the Job! Alongside 3 other applicants.
It was a Business Development job role (primarily marketing) in a Venture Capital Firm. I seriously detect marketing then but managed to hold on to the job and spent two years with the firm, rose to the position of Manager, before resigning to try-out my own stuff. I registered KINETIC ASSOCIATES, a year later as a business incubation company.
HOW I GOT RAISED CAPITAL TO START MY BUSINESS
So how did I get/raised capital to start my own business? Just two simple approach:
- I saved my entire last 6month salary! Yes. Infact I didn’t collect it from the company Admin/Accountant. I learnt about this savings principle during NYSC. I and my friends in the village left all our FG allowee in our accounts and pushed for pay from PP runs during my service year as corpers.
- Relationship: During my working days in the VC, as a BDM, I interacted with lots of High Network Individuals (HNI’s) and managed the company’s Angels Investors Network. This availed me the opportunity to build relationship with some prominent people in Lagos.
When I notified some of them that I have moved and now trying out my own business they were excited and encouraged me. So, I made some of them my mentors and often report the challenges and progress of the business to them. So after some few month of almost exhausting my savings, I approached two of them for investment loan of N2million, at N1million each, with proper document and trust they granted my request. Integrity is Cash!
So that’s the story of how I stumbled into consulting & venture capitalism, learnt, saved, built quality relationships and got money to start by business and still date I still help lots of startup entrepreneurs and business owners raised funds using some of the approach listed below:
- Owners Savings: I tell most people that need money, as long as they care to listen, it remains the best, quickest and no hassle source of funds. You have something saved up, congratulations.
- Family & Friends: Big Uncle, Mother, Brother (in my case, it was my elder brother – who was also one of angel investor in the VC firm I worked that gave me N1million Naira.. (part of the N2million)
- Partnership: Just last month (Nov 2014) I started a crayfish business, with emphasis on processing and packaging for now under a partnership arrangement. The person that have only the idea collaborates/teams-up with the person that have the funds.
- Trade Credit – collect the stock/produce, sell first and remit capital later.
- LPO Financing: create the demand first, get the order/contract, and then go seek financing to consummate it. See contact details of some financiers below.
- *Maple Credit: 01-2911401.
- *Ren Credit: 01-2772400.
- *Go Lend: 08067223366.
- *FinancialVen: 08026265381.
- *Credit Direct: 01-7641181.
- *Co-Link Finance: 01- 8948102.
- *Rosabon Finance: 01 898 0336
- *TFS Finance Ltd: 01-8163002/08023031736.
- *RegCharles Finance Ltd: +234 (0) 1-766-0001,
- *Ventures & Trusts LTd: 01 262 0300
- * UT Financial Services Nigeria Limited: 234 2954989; 2909565;
- *Boulevard Finance: 234 (01) 461 BFSL
- *Profund Finance: 07028645077.
- *Red Oak Loans: 01-8104434, 08057345657.
- *Salary Advance Nigeria : www.salaryadvanceng.com 01-844-7210. 0806-279-8100 (Jade)
- Angel Investors: Today, I manage some few millions for our KINETIC ANGEL NETWORK (KAN), and I invest in low risk short-term opportunities/projects on behalf of my investors and pay them good returns quarterly. (to join send your enquiries to : investors@kineticng.com)
- Crowding Funding: pitching your business idea online, to allow interested investors from different parts of the country/world have a stake in the business. See foreign sites like fundables.com, www.kickstarters.com etc and their Nigerian counterpart such as www.pitchoffice.com, www.234give.com
We are also currently working on our own unique crowdfunding site: to suit The Nigerian/African audience: www.access2funds.com
- Specialized SME Lenders eg Bank of Industy (BoI), NeXim, NEFRUND, BoA, Grofin, etc.
- Aids/Grants: eg MTN Business Titan, DiamondBank BET, The Tony Elumelu Entrepreprenuership Programme (TEEP), Ignite Ideas Contest, British Council Enterprise Challenge, YALI (yaliapp.irex.org) and The FGN YouWin Programme (www.youwin.org.ng) already in its 4th year/edition. I participated in the maiden edition a consultant/monitor, and supervised businesses in the eastern part of Nigeria.
WHERE WE ARE NOW…
As a business incubation company, we receive lots of interesting ideas, almost on a daily basis from within and outside Nigeria and our goal is to nurture, build and grow them into viable enterprises.
We offer complete business incubation package from start to finish: idea clarification, market research, business plan development, company formation, regulatory registration, brand development, project management, Financial Intermediation, outsourcing, systems and process development, Go-to Market Plan, amongst others.
Through our propriety “Access2Funds Workshop,” we have assisted several entrepreneurs and business owners access various kinds of capital from institutional lenders and business angels alike. At KINETIC, we pride ourselves in our passion and expertise in BUILDING and GROWING businesses across Africa.
WHERE WE ARE HEADING…
My ultimate dream is to be a Africa’s foremost development finance specialist with a passion to use entrepreneurship and finance to solve problems and create wealth in Africa for Africans.
To evolve into KINETIC CAPITAL LTD
CONCLUSION…
I hope it has been an interesting read for you. I love providing people with actionable information.
Finally, like total downstream slogan says: You know where to turn!
So whether it’s an idea you have that requires capital to jumpstart it or an existing business that seeks to expand, we here to serve you!
I will be expecting to hear from you!
Edward Esene tweets from @headiekinetic. Edward Esene is a much sought after Business Start Coach and serial entrepreneur. He works as one of the Snr. Consultant with KINETIC ASSOCIATES , Lagos. (www.kineticng.com). Send him a mail: access2funds@kineticng.com
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Very educative. Thank you
ReplyDeleteEddy Bauer this is an inspiring 'headworld' write-up. Keep up the good work.
ReplyDelete