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HOW CAN YOUTHS RAISE CAPITAL FOR THEIR BUSINESS?

Big winners like Alicko Dangote, Bill Gate, Steve Jobs, Mark Zuckerberg, Jack Ma etc. advise us to start investing our skill early in life if we want to build great wealth. The questions that you might be thinking of asking are:

  1. Is that all?
  2. What about the Capital needed?
  3. Where can a youth get Capital to start a business?

 

In this article, I shall be throwing more light on this questing for your understanding. Our Objective is to cancel the idea many people have of borrowing funds for pretends of starting a business (Very bad model). Here are some 5 tips enterprising youths can use to raise Seed Capital for business.

Work for somebody (if possible a small business) who you think can Model you at the same time pay you for your services rendered. Make a business plan and analyze the budget needed to start and run your own business. Save 20% of salary periodically for a scheduled time frame until you reach your target amount.

Case 1:

Let’s take for example you intern to start a mushroom farm with a Capital of 1,000,000 (1 million) FCFA.

  • You work for a poultry farmer who pays you 50,000 FCFA per month for 10 months in a year.

  • You save 20,000frs monthly for a 6yrs.

  • Therefore, Total =20,000 FCFA x 10 months x 6 years = 1,200,000 FCFA

    You can see that you have attain your objectives (1 million) and even got extra 200,000frs to save for unforeseen contingences.

Case 2:

You want to start a Digital firm with Capital equals 500,000 FCFA.

  • You go for a teaching job in a private school with a salary of 50,000frs for 8 months in a year

  • You save 10,000 FCFA monthly for 8 years.

  • Therefore, your total = 10,000 FCFA x 8 months x 8 years = 640,000 FCFA

    Now you see that you have raised 640,000 FCFA, attained your target amount and have 140,000 left to be saved for unforeseen contingences.

2. Join a Njangi (a group of people who contribute money for a defined objective and for a period of time) or a cooperative/association that does in your domain. Usually in a cooperative/association they plan and work together. Not only is there division of labour, the budget to be raised for a business is allocated by every member of the cooperative. E.g if the Capital for a business was 1,000,000 FCFA and the association is made of 10 members, each member contributes shares of 100,000 FCFA.

3. Go to your family for assistance. Tell them about your plan and show them what you can do if they assist you with funds to start your business. Convince them and make sure they are satisfied with you. When you do this, Don’t worry they’ll help fund your business. But if they don’t, claim your inheritance and sell it (if the worse comes to the worst). You didn’t fall from heaven.

4. Make a big business plan but execute it bit by bit. Start small by using services that are affordable. Do insignificant things that drives you toward the attainment of your goals and draws you closer to your targeted customers. Often with business you can’t start profiting immediately. It comes with time. Your success in business only arise after you start, create 1 product, sell it, make a few again and again and resultantly you’ll have assistance (of all kind) from others who believe in you and want to enable you grow bigger.

5. Apply for state funding, competitions, sponsors or sell shares of you company to other investors that believe and share in your dream. Let’s Say your business yields 100,000frs gains per month and you want to expand your business such that you gain 1,000,000 FCFA per year from and you need equity of worth 10,000,000 FCFA. Don’t borrow. Sell shares (leverages of say 51% of your company to sponsors). Meaning they gain 51% of your Profits and you get 41% of profits from your company. This may be strange but remember it is not your money that is at risk. Often this gives you backup and prevent you from unnecessary competitions. As well as yields a win-win relationship.

6. Do almost everything (business deals) at the beginning. Especially as a middleman or a broker. Learn trade and study the value chain. Gather Capital for your business and create wonderful relationships.

My story

After I failed in my first business, I had some time to rethink on what caused my failure and how to start over, I went into partnership with companies like Finix printing and Suppliers, Seed sight computers and Copyruner that all did in Printing, documentation services and Computer Training. I raised enough capital and travelled to Douala since Bamenda was becoming a war zone and infertile for business where I have established Lenjval Technologies with a team of wonderful youths with whom we do web sites, audio books, Motivational books, Programming tutorials on YouTube, podcast, Amazon, etc. As well as teaching Computer Science for Secondary schools. I have wonderful partners and Relationships all around the country and internationally.

SERIOUS WARNING: DON’T BORROW MONEY TO START A BUSINES!!!

 

 

ARTICLE BY LENJO VALERY L. 

DIGITAL ENTREPRENEUR CEO AT LENJVAL TECHNOLOGIES

COMPUTER SCIENCE TEACHER AND “A” LEVEL EXAMINER FOR CAMEROON SECONDARY SCHOOLS.

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