10 steps to make your business investment worthy in Nigeria
As the name suggests, angel investors act as guardian angels for young, beginning companies. They frequently are high net worth individuals who provide startups early funding. They frequently take on a lot of risk because they want a better return on their investment than the stock market can offer.
As a business owner in Nigeria, you are undoubtedly fortunate if you have a workable business idea. However, since there are many other business ideas that have already died, you should go on to the next level, which is carrying out your plans and making them a reality. Angel investors can provide you any amount of money you need if your business concept genuinely makes sense. Bringing your business ideas to life will largely include the utilization of money at various stages in the idea execution process.
If angel investors do not believe that your firm will flourish, they will not lend their money to you without any conditions. So, if you want to receive funding from angel investors in Nigeria, you must be aware of the requirements for your firm.
Five things angel investors want to see in a business
- As a founder, you must have a strong enthusiasm for and dedication to your company. If you don’t care about your own startup, nobody will give you any money.
- Your strategy for using the funds should be very well thought out. Don’t forget to consider how you will repay the loan as well as the portion of the company that the investor will possess.
- Conduct some study on the marketing industry and attempt to explain the potential of your firm. This has major significance.
- A fair appraisal with reasonable conditions.
- The potential need to secure some additional funding if your business grows.
Startup investors are searching for the next big chance, a cutting-edge business with the potential for big profits. As a result, you must learn how to make your startup investment-ready if you believe it has a lot of promise and you’re hoping to raise capital for your company. Here are some helpful measures to help you prepare your firm for funding if you’re thinking about approaching an angel investor in Nigeria.
10 measures to making your business investment worthy in Nigeria
Make sure your company has the following before seeking Nigerian investors who have money and are willing to invest it:
- File a business name registration with CAC.
This will demonstrate how seriously you take your plans. People will start to take you seriously if you have a registered business name since they will assume that you must be serious about what you do. The cost of registering a name for your company, though, could be little, but it’s well worth it if you want to get everything perfect.
- Create a thorough business plan for your company.
You must demonstrate the overall long-term viability of the company you are requesting an investment in. The stronger your company plan, the more specific it should be.
- Create a standout business proposal.
An angel investor might not have enough time to read all of your business plan’s paragraphs and hear your company’s opinions. Therefore, you must draft a particularly succinct and focused business plan, then send it to the investors. It should be excellent enough to pique their curiosity and compel them to meet with you for additional bargaining.
- Remember to take care of your safety
Angel investors are only people with money, so there is no assurance that they won’t take your company concept and run off with it, leaving you with nothing. Therefore, it is best to safeguard oneself by avoiding situations like this. Meet with a lawyer, and he will assist you in determining how to prevent the theft of your business idea.
- Choose the proper terms.
Many Nigerians find it unsettling that someone else is in charge of a portion of their company. Angel funding is a great way to make your firm successful, though. No matter how great your business idea, it won’t succeed if you lack the funds to implement it. Therefore, if you do not want to give up some equity, be upfront about it and discuss the possibility of repayment.
Read Also: How to make money by investing in the oil sector in Nigeria
- Build solid teams with expertise relevant to your industry
Increase investor interest in your startup by utilizing the professional experience of your leadership team. Leaders who have demonstrated success in the past demonstrate reliability and have the potential to succeed in the future. Show that you have smart, strategic, effective leaders with strict financial discipline if you want to get startup investor funding. By including interesting bios or CVs, you may highlight the qualifications of the leadership team and the company’s founders.
- Provide optimistic yet reasonable financial estimates.
Show investors the predicted date when their investment will be repaid as well as any potential future dividends. Although it is difficult to predict your profits properly five to ten years in the future, your leadership team must show investors that there is room for growth. Support your potential with a business plan that will make money. Your financial predictions will look better the more time you spend honing them, which will make startup investors more inclined to join your team.
- Outline a thorough marketing strategy.
Investors want to see a marketing plan that demonstrates two things: you know your target and how to reach them. This is true whether you are just starting your business or require startup investor money to advance. Investors might be interested in learning more about the applications you frequently use. Are you utilizing—or preparing to utilize—a powerful, all-inclusive marketing tool? or several platforms for software? Prepare to have an email platform, a CRM, a social media scheduling tool like Google Calendar, website performance software like Google Analytics, and SEO software at the very least.
The following should be included in a clear and comprehensive marketing plan together with a clearly defined tech stack:
- A lead and email nurturing plan;
- A targeted campaign strategy;
- A content marketing strategy;
- Buyer persona study;
- A social media strategy;
- A paid social/PPC strategy;
- A conversational marketing strategy;
- Regular reporting
Investors should be shown your marketing strategy and the many distribution channels you intend to use to boost your market exposure.
- Make certain that the startup costs you give are both reasonable and practical.
Overestimating your startup’s value turns away potential investors. Make sure your launch fees are appropriate for your company and clientele at this time. How you intend to spend the additional startup capital must be made clear. Will you use these monies to increase your operations? Invest in brand-new machinery or tools? launch several campaigns at once? Utilizing these money sensibly and sparingly while avoiding unnecessary costs is crucial for your startup.
- Be certain that your goals and plans are long-term in nature.
Where is your business headed? Investors are looking for startups with the potential to be the “Next Big Thing.” What do you ultimately want your startup to develop into? Do you prefer to serve a global market over your existing local one? Do you want your product in every home and 50,000 team members working with you? Give prospective startup investors a vision of where your business will be in the future and instill in them confidence that you will succeed in achieving these objectives.
Hope you enjoy this article?
Share your thoughts in the comment session.
Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write a business plan and help with fundraising strategies and Grant applications. We can help you start, grow, and expand your business.
We help institutions and organizations write concepts, implement Business plans, and train on business Plan writing in Nigeria.
We can help you write a detailed, bankable and comprehensive business plan for your business idea.
Call any of our business plan consultants on 08105636015, 08076359735, and 08113205312.
Or send a WhatsApp message or email us either at firstname.lastname@example.org or email@example.com.