In today’s competitive business landscape, accessing capital is crucial for organisations to drive growth, innovation, and sustainability.
Whether the organisation is a startup looking to scale or an established company seeking to expand, securing sufficient funding is essential to achieving its goals.
Dr. Timi Olubiyi, an entrepreneur and expert in business management, said that “in the country, apart from the known business challenges such as the decrepit infrastructure, inconsistent government policies, double taxation, regulation irregularities and the pandemic disruptions in recent times, overwhelmingly, lack of capital or funding issues contribute majorly to business failures.”
He noted that findings of several surveys, one of the top challenges faced by entrepreneurs and businesses in Nigeria today is access to funding.
Olubiyi explained that “funding is the bloodline of any form of business, therefore, whether it is a startup, nano, micro, small or medium-sized business, or an established large firm, knowing how to raise capital can often make the difference between business success and failure.
“In fact, funding is important at all business stages and cash which is most time refer to as ‘capital’ in business terms majorly dictates the pace of performance in any business. Simply put capital is the energy source that all businesses need to operate, grow and mature into a strong, vibrant enterprise.”
He noted that “invariably, without funding or capital, it will be extremely difficult to get any enterprise off the ground. However, the structure that exists in the business significantly affects the access to the choice of fund options. Recall, every business has a different structure and needs, it is, therefore, imperative to state that no financial solution is one size fits all, fund options usually require different rules and steps. Consequently, businesses will be required to carefully plan, research, learn, and understand the necessary funding option in order to come up with the right decision.”
Ways Organisations Can Boost Their Capital
Investor Outreach: Attracting investors through compelling pitches, strong business plans, and clear value propositions.
Crowdfunding: Utilising online platforms to raise funds from a large number of people, typically in exchange for rewards or equity.
Grants And Funding: Researching and applying for grants, subsidies, and funding opportunities from government agencies, foundations, and organisations.
Partnerships And Collaborations: Forming strategic partnerships with other businesses, organisations, or institutions to access new markets, technologies, or funding sources.
Debt Financing: Exploring debt financing options, such as loans or lines of credit, from banks, alternative lenders, or other financial institutions.
Equity Financing: Issuing stocks or shares to raise capital from investors, either through private placements or public offerings.
Asset-Based Financing: Leveraging assets, such as inventory, equipment, or property, to secure loans or financing.
Revenue-Based Financing: Securing funding based on a percentage of future revenue, often used by businesses with predictable income streams.
Bootstrapping: Using personal savings, revenue, or other internal resources to fund business growth and operations.
Government Programs: Taking advantage of government initiatives, tax incentives, or subsidies that support business development and growth.
By exploring these options and developing a robust capital-raising strategy, organisations can access the funding they need to drive growth, innovation, and success.
