Having an idea to start a business and own your company is a great thing. But unfortunately, this is not enough to fulfil your dream of being your own boss. But now what? No, it’s not that you can’t make it, but to turn it into the reality you need a lot more, you probably need a place where you are going to set up your business, a website to pull more customers, a tech team to maintain your online business, staff whom you need to pay monthly and many more like this.
All this directly indicates you need a good amount of money for all this.
Hence, arranging for the funds should be on your top priority once you decide what will be the nature and type of business you are going to start. Once you have realized the need for fundraising, below are some of the different sources of funding available.
Look Local
If you are looking to start a small company/business, then check for your local small business development centre. There are many ongoing government schemes to support small businesses as they contribute a major role in the country’s GDP growth.
Some of the government schemes which can help you are:
- MUDRA Loans.
- Credit Guarantee Fund Scheme for Micro and Small Enterprises.
- MSME Business Loans.
- National Small Industries Corporation Subsidy.
- Credit Link Capital Subsidy Scheme for Technology Upgradation.
You can check the details of these schemes on the government portal, apply as per your requirement and avail the benefits.
Consider Taking a Business Loans
Taking a business loan is also a good option, this will provide you with funds from banks that can be used to establish and run your business. The borrowed amount can be repaid through EMIs in a particular period of time.
If your business has already started making money then it will be quite easy to qualify for a small business. However, you are yet to start a business the lender will ask you for your business plan to know your business potential which further indicates your repayment capacity.
Giving collateral or guarantor against your loan also increases your eligibility.
Look for Crowd-funding
If you have a tech start-up, you can look for crowdfunding. This is because you need more capital to hire qualified staff, to get a corporate office space, and to fulfil many more requirements like this. A crowd-funding is the one which can help you afford all of these.
You can go to any trusted crowdfunding platform and post about your business there, or you can directly start looking for the investors through the crowdfunding platform. Contact investors and try to convince them to invest in your business. Make a sound business plan showing all the potential growths, challenges and strategies to defeat those challenges. Including these points will give you a realistic plan and will attract more investors.
Get Angel Investment In Your Start-up
Angel investors are one with surplus funds and a keen interest to invest in upcoming start-ups seeing the profit-making potential.
They also work in groups of networks to collectively screen the proposals before investing.
Angel investors have already helped many start-ups to stand and then grow further, this includes companies such as Google, Yahoo, Alibaba and many more. For the investment, the investors generally want up to 30% equity. They prefer to take more risks in investment for higher returns, hence to get more funding, angel investors are better than business loans from the banks.
If you want to grow, you probably need outside sources of capital to fund your business. If you bootstrap and remain without external funding you can’t grow fast and may be unable to take advantage of market opportunities. There are many funding options available, you just need to give some time to analyze your requirements and then the funding options. Go for the one which suits best to you.
