Starting your own business is a step to becoming financially independent. To achieve this, your business has to be successful and a successful business requires a lot of processes to follow. 

To start a small business in Nigeria you need to:

• Have a business idea, a business idea is a kick start point for your new business.
• Prepare for your new business by acquiring knowledge about the field that you have chosen, training yourself, and conducting market research for your business.
• Write a detailed business plan. This will help you to run your business smoothly, get loans and attract investors.
• Find a location, either physical or virtual.
• Register your business. Although many small businesses do not register their business, note that it is more beneficial to register your business.
• Find Funding for your business.
• Start your business.

Importance of funds and finance in growing a business

In every business venture, money is considered the most important aspect. Without it, the business cannot even begin in the first place, the idea will just be in a book or your head. 

• Funding is an essential element for any business.
• Funding provides you with a sufficient working capital
• Funding helps you to purchase assets for growing your business
• A good cash flow is essential to every small business
• Funding helps you achieve your business goals

Challenges in getting funding for business

There are many challenges to getting financial help for businesses, one of the biggest factors is the limited amount for startups to obtain from. Some of the challenges small businesses face to get funds are;

1. Nature of the business: all investors want to invest in businesses with lower risks. The source of your funding will not like to invest in businesses that will make them lose, because if the business fails, there is no guarantee that you will be able to pay the money.
2. Competition: This is another major reason why getting funds for business is difficult. A lot of people need funds too, so there are a great number of businesses competing for finances from different sources.
3. Interest Rates: financial institutions that provide loans or grants for businesses require assets to serve as a security and collateral for the money given. Startups with no assets find it difficult to acquire the funds. Also, financial institutions' interest rates are too high and the criteria to meet before getting the loans are too high for people who are just getting started to acquire the loan.

Funding sources for small business

Getting business capital is hard for most aspiring business owners because not everyone knows about the various options to choose from. The first thought when people are looking for ways to finance their business is always to get a loan from the bank, and considering the high rate of interest in banks people find it hard to go with that option.

1. Small Business Loan: There are government loan schemes available to acquire business loans from, banks, Fintech companies, and some private sectors give loans to business owners who are looking for finances to start or expand their businesses. 

2. Self-financing: These are the easiest way to fund your business. Using your personal finance is the safest way to start your business in case of risks, if it goes well or not, it is all on you. The only limiting factor here is if the money is enough for what you want to do.

3. Business Grants: A lot of public and private organization provides grants for small business owners to finance their businesses. Grants are not to be paid back, these are why it is not easy to obtain one. All you need is consistency in finding the one that will work for you. Some organizations that offer business grants in Nigeria include the Tony Elumelu Foundation entrepreneurship program, Africa's young entrepreneur empowerment Nigeria, Shell livewire funding, GEM grant, etc.

4. Crowdfunding: is the method of raising small amounts of funds from a large number of people. These people are known as crowd funders, they are not investors and they do not expect any return on their investment. Instead, crowd funders expect to get a gift from the product you sell or enjoy the services you render. 

5. Funds from Family / Friends: getting funds from friends and family is also an option for getting finance for your business. You can simply ask them to invest in your business and be careful not to ruin your future relationships with them. Every business comes with its risk, ensure to tell them the risks involved so they know what they are investing in. 

There are a lot of ways to finance your small business but these few mentioned above are the sure ways that will work for your business.

Ways to start a business on a tight budget

Starting a business with a tight budget can be very hard and discouraging, but with passion and planning, it is possible. If you have a small business idea and have little funds to execute it, there are ways you can start your business:

1. Presell your products or services: These methods involve selling your services or products to groups of people, for a start. By doing these, you can raise funds for your business and also create awareness for what you do.
2. Use your Talent: Think of something you can do that doesn't involve spending too much own. Once you know what to do, you can plan your business around that idea. For example, if you are good at making hair for people, this doesn't involve too much money, with little you can start from there. 
3. Create a business portfolio: From the above mentioned, you should know that not every business needs money to get started especially service-based businesses. You can create a portfolio of the services that you render and share with people who might need you, with time you begin to grow bigger and better.
4. Use social media: social media is a great place to launch your business idea, it requires little or no cost. Put yourself out there by using the various social media platforms available.
5. Build a community: Networking and building a community is one of the best ways to start a new business on a budget. If you successfully build an audience for your business, this will help your business grow when people start to hear about your business. You can start by joining groups on social media, following the right pages, or attending events.

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