It has been discovered that three of the most pressing needs for female entrepreneurs in Nigeria are
Funding | Technology know how | Marketing .
At She learns here, we are poised to help tackle these issues through regular information about funding opportunities, entrepreneur spotlight and news, as well as business and technology training and support.
One of the ways funding Issues can be tackled by female entrepreneurs in Nigeria is by creating peer to peer investment clubs. What do I mean by this? It is more like the popular contributions known as Ajo or Esusu where money is contributed monthly by every one involved but instead of someone receiving the money at the end of each month, the money is either used to create a new company to be owned by all the contributors, or is invested in a neutral business for returns or is invested in each of the contributors’ businesses.
Let me break it down.
Let’s say this particular investment club is called Ladies building wealth (LBW) and comprises Mrs A who is a fashion stylist, Mrs B a wellness coach, Mrs C a digital marketer, Mrs D an events’ planner, Mrs E a chartered accountant and freelance auditor and Mrs F, a barrister who runs her own legal practise.
LBW Nig Ltd is registered and Mrs A,B,C,D,E and F are all Executive Directors and partners in the company. They employ a managing director, manager and a couple of staff to run the day to day activities of the company. They have monthly board meetings where they all bring their unique gifts and talents to build this company and where they meet with the staff as well. The profits made from the company is then divided into lets say 3 places.
1 To be shared as profit amongst the owners
2 To be invested in stock, real estate, or any other investment opportunity on behalf of the company and
3 To be reinvested into the company for growth
LBW identifies a promising company e.g Prim n Proper Nig tld., that needs funding and they invest in it for equity, lets say 40%. This means that LBW owns 40% of PnPs profit.
Let’s say each of the members of LBW contribute N50,000 monthly, that would be N300,000. Each member would submit their business goals and invoices. When it’s Mrs A’s turn, She must produce receipts and or physical evidence of products, equipment that the money was used for. This is imperative because as women, we always have needs, and the money can be diverted into the family if not closely monitored.
Lastly I would like say that trust is a very important ingredient in this type of partnerships. Don’t go into this with people you don’t trust. Also, make it legal. Use a lawyer especially in options 1 and 2.
You can also join an already existing investment club. If you want to do that, please make a comment below and we will scout around and let you know.
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