For startups in Nigeria, the biggest challenge is raising money to turn your idea into a business. To be able to gather the amount needed to start your business can be the bridge between the establishment of a company worth millions and nothing at all. Crowdfunding is a way to raise capital to start businesses and other situations that need funding.
What is crowdfunding all about?
By crowdfunding, you can raise a substantial capital for your business from the little amounts contributed by many people to assist you in financing your business idea. This can be done via websites dedicated for this purpose.
What are the benefits of crowdfunding?
- It is an avenue for you to introduce your business to investors who may see the idea as profitable and decide to help you fund it.
- It helps draw the attention of many people to your business, serving as a form free advertisement platform
- While crowdfunding, you may have customers or supporters of your products or the services you offer, automatically becoming your clientele base.
- Crowdfunding helps your business gets critique and analyzed by your potential customers. This will help you gets to know the areas which you need to work on, to come out with an acceptable, desirable product.
5 best websites to raise fund for your business
If you have a business idea but you don’t have the required capital to start, the following websites can help you finance the business through crowdfunding:
1. Naijafund.com
This site lets people with business ideas seek and raise money to start their businesses. In fact, it allows you to raise funds for any course.
2. Slourish.com
This is a Nigerian site that helps small-scale businesses actualise their business dreams. On this website, you can access a free collateral loans if you have a good credit score.
3. Kickstarter.com
If you are a creative person in music, filmmaking, writing, designing, illustrating and performing, this website is your best place to source funds. You can reach the members on Kickstarter.com.
4. Indiegogo.com
This is another place where creative and innovative individuals can get funding for their ideas. It has assisted many entrepreneurs to achieve their dreams. The web address is Indiego.com.
5. Gofundme.com
Gofundme.com is about the most popular of all crowdfunding websites know to Nigerians. The website has features for different kinds of situations, such as health and education.
Steps to follow to successfully raise money through crowdfunding:
- Decide your funding aim
- Draw out a good business plan and market strategy
- Advertise your crowdfunding campaign
- Communicate well with contributors and potential supporters
- Show accountability by reporting the exact amount of donation received.
Conclusion
It is sacrosanct to know that the condition for accessing the money is to have your business officially registered with CAC.
Source: Nyscinfo