Page 1: Introduction to Business Funding
Definition: Business funding refers to the money entrepreneurs use to start, grow,
or sustain their business.
Importance: Every business, no matter how small, requires capital to function
(equipment, staff, marketing, product development).
Types of Funding:
Self-funding (Bootstrapping)
Loans
Grants
Investors
Crowdfunding
Competitions and fellowships
Page 2: Personal Savings (Bootstrapping)
Definition: Using your own money to fund the business.
Advantages:
Full control of the business
No repayment required
Disadvantages:
High personal financial risk
Example: “I started Zobo ROYALE with ₦10,000 saved from NYSC allowance.”
Page 3: Family and Friends
Definition: Sourcing funds from trusted relatives or close friends.
Advantages:
Flexible terms
More trusting relationships
How We Did It:
Presented a simple business plan
Offered to repay in 3 months after sales began
Tip: Always write an agreement to avoid misunderstanding.
Page 4: Cooperative Societies / Thrift Savings (Ajo/Esusu)
Common in Nigeria and West Africa
How It Helped Us:
Joined a local cooperative
Collected lump sum from monthly contribution to purchase equipment
Benefits:
Interest-free funds
Encourages discipline
Page 5: Bank Loans
Types: Microloans, SME loans, Personal loans
Requirements:
Business plan
Collateral
Good credit history
Our Experience:
Applied for a microloan from a microfinance bank
Got ₦50,000 with 6 months repayment plan
Challenges:
High interest rates
Paperwork
Page 6: Government Grants and Loans
Examples:
CBN Intervention Funds
NIRSAL Microfinance Bank
YouWin Connect
Tony Elumelu Foundation (TEF)
How We Benefitted:
Applied for TEF program in 2022
Received training, mentorship, and ₦500,000 seed capital
Steps to Access:
Apply online
Submit a business plan
Attend required training
Page 7: Angel Investors
Definition: Wealthy individuals who invest in startups
How to Attract Them:
Strong pitch deck
Innovative and scalable idea
Proof of traction
Our Journey:
Approached a local business owner with our growth plan
Offered 10% equity for ₦200,000 investment
Page 8: Business Competitions and Pitch Events
Examples:
Global Student Entrepreneurship Awards (GSEA)
NYSC Business Plan Competition
SMEDAN pitch events
Experience:
Won ₦100,000 grant from NYSC Lagos pitch contest
Tips to Win:
Prepare a 5-minute pitch
Practice public speaking
Focus on impact and innovation
Page 9: Crowdfunding
Platforms:
Kickstarter
GoFundMe
NaijaFund (Nigeria)
How It Works:
Share your story and goal
Raise money from the public
Strategy:
Posted business goals on Instagram and shared a NaijaFund link
Raised ₦75,000 from family, friends, and online supporters
Page 10: Partnership Funding
Definition: Starting with a partner who provides funds or skills
Experience:
Partnered with a friend who had capital
Profit sharing agreement: 60/40
Benefits:
Shared risk and ideas
Faster growth
Page 11: Reinvesting Profits
Description: Using business profit for expansion
Strategy:
Started small (₦20,000 capital)
Saved 60% of profit monthly
Reinvested in branding, packaging, and marketing
Page 12: Business Support Organizations
Support from:
Fate Foundation
LEAP Africa
She Leads Africa
What They Offer:
Training
Grants
Mentorship
Our Experience:
Joined She Leads Africa Bootcamp
Won ₦150,000 and access to investors
Page 13: Using Digital Tools to Attract Funding
Online Presence:
Instagram, Twitter, LinkedIn
Business website or portfolio
Benefits:
Builds trust with funders
Shows seriousness
Our Example:
Shared testimonials and sales updates online
Attracted a diaspora sponsor who sent ₦100,000
Page 14: Key Lessons Learned
Always have a clear business plan
Consistency builds trust and attracts help
Be prepared to start small and grow gradually
Networking is critical—attend events, talk to mentors
Keep records of all transactions and funding
Page 15: Conclusion & Recommendations
There’s no single way to secure funding—combine multiple sources
Start with what you have (savings, ideas, small support)
Be persistent and professional
Build relationships, not just pitch
Explore local opportunities like NGOs, cooperatives, and youth programs
