1 answer
Ugbo
Student
Anambra, AN
1
Question
Updated
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I want to start palm oil extraction business but still stuck on how to raise funds for the equipment needed, especially machines. I'm working but my savings of 50 thousand naira will take me a long time to afford the machines worth 1.5 million naira. I'm planning of quitting the job to manage my cloth business to see if I can save more and faster but I'm scared what if
I'm planning on starting Palm oil extraction business but finding better means to save up for the equipment needed, especially machines. My current job only gives me 50 thousand naira which is not enough to save up 1.5 million naira needed to purchase the machines anytime soon. I have considered quitting this job to manage my clothing business but I'm scared what if I don't make up to that to save. I really need this extraction business as I already have access to palm fruits but lack equipment to process them to finished product. What more do I need to do?
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1 answer
Ibrahim Ali
Software Developer
21
Answers
Mogadishu, Banaadir, Somalia
Updated
Ibrahim’s Answer
I’m really glad you asked this what you’re facing is a very common challenge when starting a business, and it’s good that you’re thinking carefully before making big decisions.
First, I want to be honest with you: quitting your job right now is risky. You don’t yet have the capital or stable income from your business, so your job is actually helping you stay afloat while you build your plan. Instead of quitting, think of your job as your “funding source” for now.
The good news is you don’t need to raise 1.5 million naira all at once to start.
Here are better options you can consider:
1. Start small or partner
You could:
Look for someone who already has the machine and partner with them
Pay to use an existing machine (rent/processing fee) instead of buying immediately
This way, you can start producing and earning before owning equipment.
2. Look for funding alternatives
Instead of only saving:
Join a cooperative or savings group (ajo/esusu)
Apply for small business grants or youth programs in your area
Consider a trusted business partner or investor who can fund part of the equipment
3. Grow your clothing business strategically
If your clothing business already brings income:
Focus on increasing sales (marketing, better products, more customers)
Use profits from it to fund your palm oil business gradually
Practical next steps:
Find at least 2–3 local palm oil processors and ask about renting their machines
Write a simple plan: how much you can earn per batch if you start small
You’re actually in a strong position because you already have access to palm fruits that’s a big advantage. Just be patient and build step by step instead of taking a big risky.
First, I want to be honest with you: quitting your job right now is risky. You don’t yet have the capital or stable income from your business, so your job is actually helping you stay afloat while you build your plan. Instead of quitting, think of your job as your “funding source” for now.
The good news is you don’t need to raise 1.5 million naira all at once to start.
Here are better options you can consider:
1. Start small or partner
You could:
Look for someone who already has the machine and partner with them
Pay to use an existing machine (rent/processing fee) instead of buying immediately
This way, you can start producing and earning before owning equipment.
2. Look for funding alternatives
Instead of only saving:
Join a cooperative or savings group (ajo/esusu)
Apply for small business grants or youth programs in your area
Consider a trusted business partner or investor who can fund part of the equipment
3. Grow your clothing business strategically
If your clothing business already brings income:
Focus on increasing sales (marketing, better products, more customers)
Use profits from it to fund your palm oil business gradually
Practical next steps:
Find at least 2–3 local palm oil processors and ask about renting their machines
Write a simple plan: how much you can earn per batch if you start small
You’re actually in a strong position because you already have access to palm fruits that’s a big advantage. Just be patient and build step by step instead of taking a big risky.