Four ways to raise fund for your business

Research shows that funding is one of the major impediments to small start-up businesses. The lesson about funding your business is the crux of this week 9, I will outline four main sources of funding and discuss them. These four main sources of funding include funds from:

  • generating revenue with your talent or skills from your customers,
  • Family, friends and your personal saving,
  • Private funding organizations
    -loans, grants, and aid, and
  • Partnership.

Generating revenue with your talent or skills from your customers is an entrepreneurial approach to build revenue. This is much recommended because it entails growing your business from the cradle and learning the ropes along the line. It is devoid of plenty of business risks. However, it could take a long time. This sort of approach widely manifest in people that have skills like fashion designing, auto-repairs, masonry and in this information age, software development skill and other IT skills is a way to raise fund for your business directly from your customer.
Another lofty benefit of this approach is that it enables the entrepreneur to learn the important art of customer management because you would be dealing with the client directly and build a client base.

To raise funds through family, friends, and personal saving is an African way to raise money because Africans are communal by culture. This approach works better when you have a good reputation capital with people around you. In many cases, these funds are raised for entrepreneurs based on emotional bases and not really logical bases.

Private funding is a common way to raise funds in an organized setting where every cent from private investment companies must be highly analyzed for profitability. In some cases, these investment companies invest with other people’s money, so they need to be convinced about the return on investment or the potential strength of the business to scale and grow. Private funders often want to have a stake in the business. Striving businesses and innovative start-ups often catch the eyes of investors.
Loans, grants, and aid are a good way to raise funds. For loans, my personal principle is that “never acquire loans for a start-up business. Loans can be acquired for an existing burgeoning business.” Businesses that are legally and financially structured easily get loans if their numbers and book are in order.

Grants and aid are also good. Grants and aid give less pressure on the entrepreneur to pay back because it is not refundable but scarce.

Partnership is another way to infuse funds and resources into your business. You can engage with people who are interested to commit their resources for your business for a reward.

Finally, almost all these forms of raising funds for your business are different forms of partnership. As a lawyer, I always advise business people that a principle they should never forget about the partnership is, “always ensure you have all terms and conditions for the funds or resources that would come in in writing and well document with the partner for future references. Get a good corporate lawyer on this sort of job.

Please share your opinion on ways to raise funds for businesses.

Thank you,

Maryam Osiri


This is a nice topic. Apart from where to get your funds from i think is is also crucial that you consider the time you raise those funds especially when it is coming from a venture capitals.

I book i recently read shares a great deal of information that i find very necessary if you intend raising funds for your business.

OPM: Other People’s Money: How to Attract Other People’s Money for Your Investments – The Ultimate Leverage. I advise that before you raise anymore external funds, please read it.


I really enjoy the topic

1 Like

Good advice

1 Like

Hello Bright, thank you for your feedback. I appreciate the book you recommended. I read it couple of years back.

Yes, indeed a sound entrepreneur literally sort for Other People’s Money (OPM) in situations when the fund is not domiciled in his/her reach.
Other People Money is basically money that does not belong to you but you find ways to acquire them legitimately for a purpose. The different forms of funding a business I discussed are all forms of OPM except the use of one’s talent to sort to receive revenue funds from customers.

Finally, as wonderful as OPM may sound, I strongly recommend an entrepreneur acquires the required knowledge, skills and mentor-ship support to run the business which the OPM would be used before sorting for the OPM because the primary enabler of OPM is reputation. Acquired OPM really needs to be well managed with your knowledge and skill to maintain good relationship with the people whose money is involved.

Once again, thank you for your feedback.

Maryam Osiri


I think the best should be to take loan. It will go a long way in helping your business grow


@Maryam_Osiri in business,cash is king cashflow is an indispensable factor to consider.many entrepreneurs are frustrated with their businesses because of capital

Please see below another possible way to raise capitalMonthly contribution as a way to raise Funds


Thank God we have a lawyer in the house. I could remember a friend of mine who was into janitorial services and outsourced two cleaners to his client. He actually believes he was helping people he need to get a source of livelihood without any agreement or formal document between him and the his staffs.
Then the sudden call came him that one of the cleaner stole gold and some dollars worth 30 million naira in the client room. My friend was arrested and was told to produce all the guarantor forms the cleaner submitted. But there was nothing of such, Just bio-data.

Eventually my friend was detained overnight but released before 24 hours. I actually learnt alot from His lessons because he was able to get two lawyers who advised him on how to do a proper documentation for his staffs and register his company.

One, the company would have taken the responsibility instead of detaining him, if he had registered his company properly.
Two, the police wouldn’t have harrased him because they were saying all manners of things e.g They said they can sue him for human trafficking. Imagine.

I respect the office of a lawyer because they eventually made them to withdraw the case against him. How! Simple… The lawyers told his Client to produce the evidence between the two parties involved which stated that the client had gold and dollars worth that amount in the room at the beginning of the contract.

No disclosure agreement and case closed. I love lawyers :rofl:


@Maryam_Osiri. Sorry for digressing from the topic. Just appreciating the office of a lawyer. Entrepreneurs need you to get things right. :+1:


Thanks for the write up. I love it


Hello Deborah, thank you for your comment.

Yes, indeed “cash is king in business”. This quote is most appropriate when one talks about the viability of a business. For instance, if you want to get private investment to your business, the investor would like to see your account book in order to figure out your cash-flow and the profitability of the business. They would want to if “the king” is in your business which to an extent highlights to revenue inflow.

However, in terms of raising for fund,yes money is very important but most times when the focus is absolutely on raising fund,the entrepreneur tends to not employ his/her core entrepreneurial prowess. The point here is that no matter how much you raise or intend to raise, your business must have the capacity to generate funds sustainably unless it would collapse. Kalen (2020) stated that, “a company may have all the revenue in the world (in form of loans, grants etc), but without the ability to generate cash, it can easily fail.”

Finally, trying to raise capital through monthly contribution is a nice one. But it needs fund generation before before one could contribute; it is a form of savings. To effectively generate fund is key.

Thank you.

Maryam Osiri


Kalen Smith (2020) “Reasons Why Cash Is King for Businesses & Individuals”, [Online] Available at: (Accessed on: 03 July 2020)


Toyin, I really enjoyed reading through your comment.
I learned something too. (Smiles)

Setting out the structure of a company takes a gradual and conscious deliberate effort from the business owner. The business owner lays out policies, culture, principles on how the business would run. For example, in the light of janitorial experience, I partner with a janitorial company in Abuja, Nigeria. Part of my work is to ensure the company is well guided in terms of their labor laws and other legal activities.
It is always important to set things right especially from the beginning of the business.

Thank you once again, Toyin.

Maryam Osiri


Great post this @Maryam_Osiri. The comments are of top quality and informative, I’ve personally noted one or two things that i had limited knowledge and i’ve learned.
Entrepreneurship is all about turning ideas into reality and using Technology to solve a Problem. Apart from the points mentioned, your business can/will generate revenue for you through traffics on your company’s website. With the right tools and plugins high traffics increase revenues for the firm which is an added advantage as your website is where you advertise your products to the whole world.
I hope somebody finds this helpful. As i prepare to touch on modern innovations that are guaranteed to increase firms yield in my next post.



Thank you @Maryam_Osiri. I will ensure I lay the right foundation for my business.


Very helpful, kudos.


Thanks Maryam Osiri. I use all the four ways to raise fund for my business but in that order but private funding organisations are the last