(SIYB) START AND IMPROVE YOUR BUSINESS LESSONS CLASS #5

# Lesson 5……continued from lesson 4

Partnership funding:-is another way of sourcing capital for new venture. Partnership funds is money contributed by two or more people with common interest to start up a business- an entrepreneur with small capital can team up with another entrepreneur(s) with small capital to start a business. The new partner(s) brings into the business additional capital, experience and skills.
This source of financing only function on partnership or incorporated business legal structure, thus creating dilution in ownership of the business. Starting business with partnership funds require certain conditions and formalities that must be observed; such as involving solicitor, signing a partnership agreement, which cover the following:-
• The trading name of the partnership-this must be registered with corporate affairs
• Corporate account; open with the partnership trading name
• The nature of the partnership business
• The names and addresses of all partners
• The personal capital contributed by each partner to start up the business
• Any loans made by each partner to the partnership
• The amount and frequency of drawings to be taken by each partner
• Each partners percentage share or interest in the partner; income, profits/losses and assets of the partnership
What to consider when choosing partnership fund to start up business
• Personal suitability of your partners
• Partner trustworthy
• Do all partners share the common objectives, and idea
Government schemes: - this is another way of sourcing finance for starting a business. Government schemes are poverty eradication programs designed by government and CBN to help train and empower entrepreneurs, unemployed youths to start small business-such schemes like NETS, NDE are tailored made to provide entrepreneurs with little fund to start up. An entrepreneur can take advantage of these schemes to acquire skills, experience and little start up fund.
Two prominent government schemes:
NDE: - National Directorate of Employment; this scheme empowers aspiring entrepreneur and unemployed youths with both skills and little start up fund
NETS: - National Employment Training Scheme; this program empowers entrepreneurs with skills and technical know how as well provide a place of internship for the entrepreneur after training
Trade association fund: - these exist for the benefit of their individual consumer members. As with saving bank, personal loan, from trade association can be used for business purpose.

…. to be continued tomorrow, keep a date with me daily. . Making a step towards your destiny

Vicky Obagha is the author of bestselling books and CEO of kambelsolutions: - a consulting, training and merchant firm
For help ring Vicky on 08064478354 or send email to; [email protected]