According to a market research, more than 90% of newly
formed businesses stop working within first year of their function. Sort of capital
is one of the common issues. Fund is the bloodline of any business operation. But
it’s very tough to arrange enough funds for your newly born business. Here, we have some suggestions to raise
capital for your startup. Some of these funding opportunities are for Indian
business, however, some substitutes are offered in other countries.
1.Self-funding for your startup: Initially all entrepreneurs face lots of problem to arrange outside funds without showing any transaction. In this situation self funding is ideal. If you have enough money to start a business they choose this option. You can arrange some funds from your relatives and friends for this you don't need to submit formal documents of your business. You need to present a concrete business idea to them. Also they are flexible with the interest rate. Self funding is considered as initial investment and in future investors are considered it as a plus point of your business as you arrange your initial capital from your side.
2.Crowdfunding a brand new option for your startup: Crowdfunding is a newer and very popular option of your startup. It's like taking a loan, investments or contribution from more than one source at the same time. First of all you need to place your business details, goals, profit earning methods, amount of funding you need and some more data on crowdfunding platforms. After that crowdfunding organisation review your data, if they like your plans and idea, they will approve and provide fund for your business. Some well known crowdfunding websites in India are Wishberry, Ketto, Fundlined, Catapooolt, Indiegogo. In United States, Kickstarter, RocketHub, Dreamfunded, Onevest and GoFundMe are front runner crowdfunding sites.
3.Arrange Venture Capital for your Business funding: Some Capitalists generally invest in a business against the equity. Venture capital investment is ideal for Small Scale businesses that are ahead of startup phrase already started generating profits. But it has some drawbacks you need to specify a duration for the funding or it was predefined for how many years this funding will active on your business. Normally capitalist can recover their funding between three to five years time span. If your business suits this condition then it's also a good option for your business.
4.Raise your funds through Bank Loans: In general banks is the first place that businessman visit when he thinking about funding. Options of banking finance are two types for any business. First one is Working Capital Loan and other one is funding. Loan required to run for one complete business cycle of revenue generating operations is called Working Capital Loan and it's limit normally calculated using stocks and debtors. Funding from bank would be involve the general process of preparing your business plan and valuations details, with your project report. After that banks will approve your loan. All the banks in India offers finance to the businesses. For example, leading Indian banks like Axis, ICICI, HDFC, State Bank of India have lots of different options to offer security free business loans. You need to respective bank websites for more details about loans. In United States, websites like Kabbage can help you to get working capital loan online.
5.Government programs that offers funds for your business: Indian Government offers startup fund to improve startup ecosystem in India. Government supported ‘Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA) initiates with a primary amount of Rs. 20 thousand crore to widen advantages to around 10 lakhs SMEs. For this you need to place a business plan and after approval you will get a MUDRA CARD it's like Credit Card and you can use it to buy your raw materials and for other expenses. Three options are available in this loan category these are Shishu, Kishore and Tarun.
Hope this article helps the entrepreneurs who are always looking for a good funding option.
1.Self-funding for your startup: Initially all entrepreneurs face lots of problem to arrange outside funds without showing any transaction. In this situation self funding is ideal. If you have enough money to start a business they choose this option. You can arrange some funds from your relatives and friends for this you don't need to submit formal documents of your business. You need to present a concrete business idea to them. Also they are flexible with the interest rate. Self funding is considered as initial investment and in future investors are considered it as a plus point of your business as you arrange your initial capital from your side.
2.Crowdfunding a brand new option for your startup: Crowdfunding is a newer and very popular option of your startup. It's like taking a loan, investments or contribution from more than one source at the same time. First of all you need to place your business details, goals, profit earning methods, amount of funding you need and some more data on crowdfunding platforms. After that crowdfunding organisation review your data, if they like your plans and idea, they will approve and provide fund for your business. Some well known crowdfunding websites in India are Wishberry, Ketto, Fundlined, Catapooolt, Indiegogo. In United States, Kickstarter, RocketHub, Dreamfunded, Onevest and GoFundMe are front runner crowdfunding sites.
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| Raise funds for your Startup |
4.Raise your funds through Bank Loans: In general banks is the first place that businessman visit when he thinking about funding. Options of banking finance are two types for any business. First one is Working Capital Loan and other one is funding. Loan required to run for one complete business cycle of revenue generating operations is called Working Capital Loan and it's limit normally calculated using stocks and debtors. Funding from bank would be involve the general process of preparing your business plan and valuations details, with your project report. After that banks will approve your loan. All the banks in India offers finance to the businesses. For example, leading Indian banks like Axis, ICICI, HDFC, State Bank of India have lots of different options to offer security free business loans. You need to respective bank websites for more details about loans. In United States, websites like Kabbage can help you to get working capital loan online.
5.Government programs that offers funds for your business: Indian Government offers startup fund to improve startup ecosystem in India. Government supported ‘Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA) initiates with a primary amount of Rs. 20 thousand crore to widen advantages to around 10 lakhs SMEs. For this you need to place a business plan and after approval you will get a MUDRA CARD it's like Credit Card and you can use it to buy your raw materials and for other expenses. Three options are available in this loan category these are Shishu, Kishore and Tarun.
Hope this article helps the entrepreneurs who are always looking for a good funding option.
