EDS 121

STARTING WITH WHAT YOU HAVE

DR. MAXWELL OLOKUNDUN
 INTRODUCTION
One of the greatest perceived
challenge of start up
entrepreneurs is funding.

Raising capital to start a

business is usually a popular
reason for inaction of many
budding entrepreneurs.

Is it possible to start a business

without money?
WHAT IS A BUSINESS
A business is not just about
making money
A business is not just about
making profit
A business is not just about
starting an enterprise
A business is about solving
problems
For instance what problem
does a university solve?
 VALUE AND
MONEY
As an entrepreneur, you must
realize that people will only
offer you their money for the
value you create.
People will offer you money if
they think or know that you
have a solution to their
problems.
Why do you think people
patronize clinical psychologists
or guidance counselors?
AN ENTREPRENEUR
AND MONEY
The goal of an entrepreneur must
not be to make money, rather the
goal must be to create value.

Money naturally answers to value

creation.

When people think or know that

you have a solution to their
problems, they are ready to offer
you money even in anticipation of
the value they will get.
Having A Business Idea With
No Money

People young and old always

complain about wanting to start
a business but have no money.

However, if you have a viable

business idea don’t let the lack
of capital stop you.

A viable business idea which

creates value for people is as
good as money.
Business Start up Approaches
and Funding Options
Build on your skills and
knowledge:
Instead of
trying to start a business in a
niche outside of your comfort
zone, stick to something you
know.

It is true that you can learn

new skills, but it will take time
and may require funds for
training.
Offer a Service:

You can start a service business

with little or no money.
Instead of money what you need is
the ability to knock on doors and
make sales.
Even if you ultimately want a
product business, owning a service
business can help you get there.
Use the service business to finance
your dream business.
For instance, Microsoft started
out by doing sporadic software
development gigs.
Invent a Product and Get a License :

If you are an inventor, you

could license your patent to a
company.
In licensing deals you normally
get a percentage of sales.
The best way to license your
invention is to seek out
manufacturers.
Technically, it is called licensing
your patent rights.
CONTD.
Reach out to manufacturers with
a short message about your
invention.
Provide enough information to
trigger interest
Consult with an experienced
licensing attorney before you
enter negotiations.
Ultimately, the licensing
agreement will include details
about upfront payments,
exclusivity clauses, percentages,
and infringement issues
Business Start up Approaches
and Funding Options Contd.

Partner with an Entrepreneur:

Many businesses are started by
solopreneurs who quickly
become overwhelmed.
Most entrepreneurs would
want you to buy yourself into a
business partnership.
One way to do that is to buy
into the business with your skill,
knowledge, or expertise.
Contd.
Use Crowd funding:
This is the practice of funding
a project or venture by raising
many small amounts of money
from a large number of people,
typically via the Internet.

Three types: Reward crowd

funding, debt crowd funding,
and Equity crowd funding
Apply for Support Programmes:
There are business financing
options offered by the
Government through agencies
such as Small and Medium
Enterprise Development
Programme of Nigeria (SMEDAN),
Bank of
Industry etc.
There are also funding options
offered by financial institutions
such as The Central bank of
Nigeria and other banks.
Your Business Plan is your most
potent tool to secure funds
Find Angel Investors and NGOs

Angel investors invest in early stage or

start-up companies in exchange for an
equity ownership interest.

High-profile success stories like Uber,

WhatsApp and Facebook have spurred
angel investors to make multiple bets
with the hopes of getting outsized
returns.

A well crafted business plan is also the

most potent tool for securing funds with
angel investors and Non governmental
organizations like the Tony Elumelu
Entrepreneurship Programme (TEEP)
Concluding Thoughts

The greatest obstacle

to being successful
as an entrepreneur is
not raising the funds
for the business, but
developing an idea
that creates value.