How to Get People to Invest In Your Nigerian Company

How to Get People to Invest In Your Nigerian Company

So, you want people to invest in your company?

Getting people to invest in you as a Nigerian is not as difficult as you think. There is no doubt that people in the international community exercise due diligence when dealing with Nigerians, but this has not stopped international organizations from investing in Nigeria. You can get people to invest in you as a Nigerian business owner by implementing the tips covered in this guide.

When you understand that getting people to invest in your company carries the risk of financial loss for the investor, you will understand the difficulty involved in getting investors to commit funds to your startup. Since it is natural for potential investors to be skeptical about the viability and profitability of your startup, it is your responsibility to convince them to believe in you and in your venture using the tips outlined in this piece.


How to Get People to Invest In Your Nigerian Company

How Can People Invest In Me As A Nigerian Business Owner?


1. Showcase Your Management and Staff

To get potential investors to pay you attention, you must demonstrate that you have a company in place. Whether you have a new startup or an existing business, investors will only be keen to listen to you when you demonstrate that you have all the key personnel in place. Management and employees must be shown to be in place to prove that you have a real operational business with a real market share. This will convince investors that your business is the real deal.

2. Demonstrate Results

Given that investors don’t want to commit funds to a business that might collapse anytime, you must convince them by demonstrating that your business is here to stay. One way to do this is to take them on a tour of your factory, show the production process for your products, show them your sales figures, and how well your target market loves your products.

Demonstrate your market dominance and how far competitors come behind. You must show how your products and services have been able to solve real-life problems and showcase profit projections for the near future. Once you convince target investors that your small business in Nigeria is viable and profitable, they will be more than willing to commit their funds.

To fully sway your target investors, get real market users to talk about the benefits of using your products and the problems they are having in getting more of them. Share real-life testimonies and let consumers express their desire for more of your products and how they are willing to pay any amount if it can be delivered to them in record time.

3. Address Investors’ Objections in Your Pitch

While pitching is an important aspect of getting financiers to invest in your business, you must anticipate the objections they may raise and address them in your pitch. Pitching involves promoting your business to potential investors by demonstrating your products with a view to getting them to invest in it.

Pitching entails providing a document that argues your business viability, profitability, market penetration, and need for funding; as well as a demonstration of your products and services to drive home your points. You may need to have an expert team from your company or hired consultants to present your pitch. And all anticipated objections should be addressed in the pitch.

SEE ALSO: 11 Top Sources of Funding For Your Business in Nigeria

4. Attend Networking Events

As a small business owner in Nigeria, you must try to attend networking events within your industry. Whether you are in Lagos, Ibadan, Owerri, or Kano, there are networking events that you can attend to introduce your business to industry players. Some of the people you can expect to meet at networking events include investors, business owners, media personnel, product distributors, and other market players.

Ensure you attend local networking events in your community or state. This will be an opportunity to learn what is going on in the industry, catch up on newer innovations, introduce your brand to people, attract investors, and even meet experts who can be hired to work for you. You can distribute brochures about your business, speak to the media, and propose how your business is solving real people’s problems.

5. Apply to Business Accelerator Programmes

Another way to attract investors to your small or medium-scale business is by applying to accelerator programmes. While startups in the US have Y-Combinator or TechStars, those of us in Nigeria have business accelerator programmes such as:

– Tony Elumelu Entrepreneurship Programme (TEEP)

– Youth Entrepreneurship Support (YES) Programme of the Bank of Industry (BOI)

– GroFin Fund

– Africa’s Young Entrepreneurs Empowerment Nigeria Financial Grants

– Lagos State Employment Trust Fund (LSETF)

– Africa Women Development Funds (AWDF)

– YouWin Connect Nigeria

– Africa’s Business Heroes (ABH) of the Jack Ma Foundation

– Orange Corners Lagos, run by FATE Foundation and funded by the Embassy of Netherlands in Lagos

– Diamond Bank BET Programme

– Shell LiveWire, funded by The Shell Petroleum Development Company of Nigeria Limited (SPDC)

There are other accelerator programmes for Nigerians that are not listed above, but you can Google them or as other entrepreneurs in the industry for reference and guidance. Sometimes you may not get the investors you want on accelerator programmes, but they can provide you with initial funding after providing mentorship and business training.

6. List Your business on Online Fundraising Platforms

There are online fundraising platforms that can connect you to potential investors. You can get venture capitalists (VCs) and angel investors on these platforms, and even connect with other businesses on the lookout for partnerships, mergers, and acquisitions. You may have to apply to accelerator programmes or fundraising platforms to reach and attract investors to your small business.

7. Convince Family and Friends to Invest In You

In your initial bid to attract investors to your business, your family and friends should be your first targets. Just as friends and family members should be your first customers after launching your products and services – with positive testimonials to promote your startup – they should also be the first to be considered as investors in your new venture.

In Nigeria and other African countries, family is everything. Your family and friends want to have a say in everything you do, and they want to be part of your success. So they would be glad for the opportunity to invest in your startup if they have the funds, and if you have demonstrated sufficient expertise and commitment.

8. Be Confident and Realistic

The importance of confidence and reality cannot be emphasized enough. When pitching to potential investors or soft-selling your business to industry players, you must exude faith and confidence in your startup. You must tell a story of how the startup started and the key motivations for the startup. You must demonstrate your passion and your input from co-founders and key management.

When investors observe your business confidence and realistic objectives as well as significant milestones, they will be motivated to commit their funds. Be realistic in your market analysis, market expansions, projected profits, and scaling models. Do not forget that your potential investors have industry experience and you are not the first business owner to pitch to them, so be realistic.

9. Emphasize The Return on Investment (ROI)

To get potential investors to commit funds to your startup, you must convince them of a return on investment (ROI). In corporate finance, ROI is the percentage amount that is earned within a business period and which an investor can expect to earn on his investment. Investors would only consider putting money in your venture if it can be demonstrated that they will have significant earnings on their investment.

So emphasize return on investment when pitching to investors, and ensure your ROI projections are realistic and based on market analysis. As much as investors care about the solutions your products bring, they care more about earning on their investments. So they will only sign a cheque if it is obvious that they will be earning superbly on funds committed to your startup.

SEE ALSO: Business Opportunities for High-Income Earners in Nigeria

10. Know Your Investor Audience

Your investor is a financial partner who must be convinced to see what you see. Sometimes, you must be the one to see what your investor sees. And when you see the same things, then things move pretty fast. To get financiers to invest in your company, you must acquire their visions and address their market concerns. One major way to relieve their fears is by showcasing the management team you have in place.

When you know the market your investor is targeting, it becomes easier to develop products and services that cater to the market. Food security is a major government concern in Nigeria and a very important economic problem. If you can convince an investor interested in agriculture that your agro-allied business can provide enough food for at least 50% of the 230 million Nigerians, then the investor will be happy to provide his backing to your venture.

11. Start Somewhere

Investors don’t want to lose money with an untested business model. So start something to demonstrate the seriousness and viability of your small business. Create products that are already selling in the market and let potential investors see the figures and the market projections. Let your target investors review the profits and how much can be earned further with more funds and expansions. Demonstrate the value of your small business to the world around you.

By starting somewhere, you can demonstrate to financiers that you already have something going for you and that you are not just a dreamer. Showcase your management team, your rack of skilled employees, your factory or production process, your supply and distribution channels, your marketing strategies, and other market analyses that show you are an existing business that just needs more funding for scalability.

12. Understand Your Financial Situation

Before hunting for people to invest in your small business, understand your financial situation and what more can be achieved with more funding. Know how your products or services are performing in the market and their growth trajectory for the next five years. Understand how financial limitation has been hampering your growth and measurable milestones that can be achieved with given funds.

When pitching to investors, let them know the financial situation of your business and how their money is going to be put to use. Let potential investors know if their funds will be used for new product development, hiring market experts, expanding to new markets, and scaling the business in any realistic form. When they see your transparency and milestone achievements, they will be glad to invest in your company.

13. Reach Out Again To Your Target Investors

It is not likely that your target investors would say yes the first time you introduce your small business in Nigeria to them. If you pitched to them at a local networking event and online at fundraising platforms, you must get back to them to know their feedback. If you showcased a product prototype or demonstrated a service at the proposition event, reach out to them again to know what they think.

It could take weeks or months before an investor agrees to partner with you, so don’t be discouraged when you don’t hear from them immediately. You must contact them again to possibly request for another demonstration or to update them on another milestone your business achieved. When done properly, you will get to receive a yes or no answer in time to know the next steps to take.


Although it is possible to write emails or contact potential investors you have never met for partnership, it is best to propose to investors you have met in person at conferences, local events, and other social occasions to partner with you. Convincing a stranger to invest in your small business will be much harder than getting the approval of someone you have a history with.

So to get people to invest in your small business in Nigeria and elsewhere around the world, you must apply the tips outlined in this guide. You can speak with an industry consultant or search online for more ideas on getting VC and angel investors, but the tips covered in this guide will do just fine if you execute them perfectly.




17 Ways to Plug Financial Leakages and Save Money in Your Business

17 Ways to Plug Financial Leakages & Save Money in Your Business

Hardworking people struggle financially when they can’t manage their personal finances. Likewise, small businesses struggle financially when managing business finances becomes a job in itself. For most individuals and businesses, plugging financial leakages might be all they need to succeed and not making more money.

These 17 ways to plug financial leakages and save money in your business will open your eyes to managing your business finances effectively. While your business may have been struggling to stay afloat due to factors beyond your control, this cornerstone article will help you minimize the effects of these factors on your business.

The ultimate objective of this document is to help your business make more money, reduce financial burdens, drive growth, increase productivity, eliminate accounting errors, optimize planning and strategy, and give employees and customers an overwhelming sense of satisfaction. You can build a solid financial foundation for your business with these 17 business finance strategies.

How to plug financial leakages in your business

Here are some key ways to eliminate financial losses in your business organization:

  1. Differentiate your personal and business finances

It is always a mistake to lump your personal and business finances together. For instance, receiving your business incomes into a personal bank account is a grave error. It is also a mistake to use your business incomes for personal family obligations. So separate your personal finances from your business finances for the sake of clarity, transparency, and tax obligations.

  1. Pay off your business loans promptly

Although it is a good idea to borrow loans to start your business, it is not right to continue running your business on loans. Remember that loans come with a steep price; the higher the loan, the higher the interest rate; and the longer the repayment tenure or defaulted payments, the steeper the penalties. Pay off your business loans before and as when due.

  1. Diversify your business interests

While it is a good idea to operate your business in your area of specialty, you can diversify your portfolio to gain better leverage. For instance, if you run a transportation company – you can also go into the haulage business, veer into delivery service, and provide on-the-demand drivers to other businesses. With diversification, one successful business may boost a struggling one.

  1. Why spend when you can get it for free?

As a business, you may need to work with expensive software, rent high-rise buildings, and operate a fleet of cars. The question now is: why do you have to use paid software when a free version works equally fine? Or why rent a high-rise office when you can convert your garage to an office? Cut down on business costs by using free and cheaper alternatives at all times.

  1. Save for business emergencies

Unforeseen things happen in business. Government policies may necessitate huge changes, and a factory accident may cost the business dearly. So save up for business emergencies that may involve vehicle breakdown, high cost of fuel, employee injury or death, market fluctuations, and global crises.

  1. Run your business on a strict budget

This is a no-brainer. Running your business without a strict budget is like running around without a clear purpose. Budgets restrain you from unplanned expenses and provide insights into necessary spending. Do not make an office purchase because an equipment is beautiful and you feel you might need it in the future; spend only on what is critical for business operations.

  1. Hire or consult financial and tax experts

There are times when outsourcing a job might be cheaper than hiring a staff to do it. And consulting with financial, tax, and sales experts might save your business loads of money. Tax experts may save you huge money and financial analysts may identify and plug leakages in the financial books. For whatever it is worth, hire and work with experts when the end justifies it.

  1. Plan for the next decade

Nobody saw the COVID-19 pandemic before it hit. No one knew Hamas in Palestine would attack Israel and paralyze business activities in Gaza. And no one anticipated that Russia would invade Ukraine to the point when it would have global economic consequences. Planning strictly for the next 5-10 years may enable you to navigate effectively when unforeseen events take a toll on your company finances.

  1. Bring on investors

Just as everyone needs more money to take care of personal needs, businesses also need more money to drive growth, hire experts, diversify into new markets, and run at a profit. To fully scale your business in emerging economies, you may need to bring on newer investors. Bringing on new investors makes more money available, and it brings on newer connections.

  1. Always review your finances

While this is very important, you may not be able to do it alone. You may need the expertise of a financial consultant, certified accountant, or licensed auditor to review your business finances and ensure you are not wasting business funds. Reviewing your business finances may involve reviewing your financial statements, balance sheet, accounting ledger, business subscriptions, employee allowances, and recurring expenditures among others.

How to save money in your business

Below are important ways to save money in your business for better growth and expansion:

  1. Improve your financial IQ

How you view money and business finances is very important. In fact, your spending habit or how you manage company finances is dependent on your financial IQ. This means that your money mindset is very important to managing businesses successfully. So what stops you from going to a business school or reading up on money matters online?

  1. Go for insurance

Insurance is more helpful than most people view it. Although it is a recurring expenditure, it saves you more money in the long run than without it. If you pay N5,000 monthly as auto insurance, that would be N60,000 in a year; if the vehicle gets involved in an accident within the coverage period and the repair cost is about N350,000, you would have saved around N290,000 or more on your car insurance. The same goes for other aspects of your business.

  1. Put money away

Save money for business emergencies and necessities. You may do this automatically by having your bank deduct a certain amount of money every month into an emergency account. Remember that money saved is money gained, and nothing can be truer in business than this. You can also deposit payment bonuses and tax refunds into your business savings account to help with emergencies.

  1. Establish good credit

One of the best things that can happen to your business is to have good credit scores everywhere. Paying off your loans on time, buying necessities with credit cards, paying subscription bills on time, and shying from your credit card limits. With a good credit history and scores, lenders would be open to borrowing you more money and suppliers would be glad to do business with you.

  1. Boost your revenues

Working to boost your business revenues would go a long way to help you have more money. Improve overall sales, hire more marketing and sales executives, spend more on working advertising models, eliminate unproductive expenses, and block money drains. Everything you do must be targeted at satisfying your customers and boosting your business revenues.

  1. Eliminate redundant positions

Whether you run a small or large business, you will save money by eliminating redundant positions or merging two similar positions into one. If software can take over the job of an employee that is unproductive, fire the employee and let software do his job to save money. If two or more company positions are similar or duplicated, merge the positions into one and save money in the process.

  1. Invest in other businesses

Running a business does not stop you from investing in other businesses. If you have enough money to spare, you can partner with other businesses to make more money. Investing in other businesses does not make you an active partner, but it may earn you significant income to boost your own business. And do not overlook the opportunity for business acquisition and mergers if it will solidify your position in the market.


To succeed at any business, you must lock money in by plugging financial leakages and boosting revenue capacities. This is a process that may involve tracking your finances, overhauling your marketing techniques, eliminating redundant positions, investing in other businesses, hiring leading experts, and outsourcing to independent contractors. It might also be cheaper to automate your business activities than you hire paid employees over a long period of time.

You may also need the services of external auditors and consultants to take your business to the next level of financial security and economic leverage. Protect your business from market fluctuations and global outages as you employ the 17 ways to plug financial leakages outlined in this guide. Do not forget that you must constantly review your business finances to ensure that you are not spending money you did not budget for or spending money for personal non-business needs.