By Ayo Emakhiomhe
VENTURE CAPITAL FUNDS
This is equity funding for start ups and small businesses provided by specialist institutions either as equity, loans or a combination of both as the need arises.
A venture capitalist is always on the lookout for great start up ideas that will attract high turnovers and income both in the short term and in the long term.
Therefore you will have to ensure this is considered extensively in your business plan and factual information is provided.
The objective of the venture capitalist is good returns and high yield of his investment both in the short term and long term and a good level of ownership rights/control.
A venture capitalist will always thoroughly access your business plan and may need to have it realigned to suit his vision/investment purpose so be ready for this.
You can access more than one venture capital institution at a go, but always be weary of the fact that they can come together and take over your business.
Some Companies that are known in Nigeria for providing such funding or agents of companies that provide such funds are
- Fate foundation
- Incapint limited
- Coinbox limited
- Banks and discount houses through the government SMEIS project
- Government incubator estates like that run by Lagos state government at Matori in Lagos.
- Bank of Industry (BOI)
- Many other sources
Websites to visit for more such details are
8. And many more
To employ any of the methods outline above, you must have already done your research/feasibility study and prepared a business plan. If you have not, please prepare that first before deciding which method or combination of methods will best suit your business plan and needs. If you do not have a business plan, you are like a blind man that wants to run a marathon with lots of dangerous obstacle courses and your competitors are fully sighted while you have not the slightest idea of the track.
Also, always Endeavour to start small; Even if you have all the capital to hit the high market with your product or service. Always start with just a small test first. Do a Test run of your venture before slowly releasing funds to grow it to size. By doing this you will see any small problems that otherwise would have been hidden by large outlays and your mistakes and losses will be small. Also, backing out if necessary will be at minimal loss/damage.
BOOK TO READ
Because a dream and enterprise cannot grow more than the owner/leader, we will always encourage you read a book, listen to a CD or watch a DVD on an entrepreneurial topic to open your mind and expand your horizons.
We in our own way will always suggest at least one in our posts starting with this post.
The one we are recommending today is
THE YOUNG ENTREPRENEUR’S GUIDE TO STARTING AND RUNNING A BUSINESS
By Steve Mariotti. Published by Three Rivers press, New York (2000).
It is available at very good bookstands around.
The author can be reached at coinboxlimited@gmail.com or 2348023526682
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