@jerey wrote:
In this recession every investor is holding his or her money very tight. At times entrepreneurs with good ideas find it difficult to raise funds.
Let me share you a story of a friend in Kaduna on how he raised money for his Goods distribution company.
In 2010, my friend meet his Uncle, a top director in the bank and he needed 3 million naira investment for 20% shares in his company to supply finished goods to retailers in local government areas. He told his Uncle instead of him losing his money if the business fails, he should open a fix deposit account and put the 3 million Naira there for 8 months.
Every month the bank gave his uncle 8% from the money dropped in the fixed deposit account which was 240,000 Naira. His Uncle gave my friend 240,000 Naira every monthly to run the operation of his business and his Uncle 3 million Naira was kept safe without lose.
To cut the story short, my friend goods distribution company has grown and he is now making between 1 million – 2 million Naira every month in revenue.
You can use this concept for investors to invest in your tech company by giving them how much you need for your monthly operations. The investors have nothing to lose in terms of money since their money is on fixed deposit controlled by them and in case if your business fails you have learnt a lesson and won’t be ashamed to meet them tomorrow for advice or connection.
Have a nice weekend
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