Funding is the fuel every startup requires. Take help of these funding options to collect the sufficient capital for your business.
Also read: Want to get funded? Here’s what you need to do!
Option 1: Self- funding
You can’t ask investors to raise money for your business without your own contribution. Also known as bootstrapping, investing a little money from your kitty, is a prerequisite to starting your business. You may also seek help from your family, relatives or friends who can put their money in your start-up
Option 2: Partnership
Having insufficient funds for your startup is a primary obstacle, but business partnership can eliminate this headache up to an extent. A cofounder with similar business objectives will help you by sharing both the responsibilities and investment requirement.
Option 3: Small Investment (Crowd Funding)
“Crowdfunding” involves collection of investments from a number of people, usually through the medium of various crowdfunding websites on the internet. Although crowd funding is profitable for financing and promoting your business, it is unfavorable if your business is not appealing to the small investors.
Option 4: Initial Investors or Angel Investors
Angel investing is an option with various advantages. These investors are successful entrepreneurs with surplus funds which are enough for any start up. The angel investors can directly put their money in your business if they trust the credibility of your startup.
Option 5: Venture Capitalists
These fundraisers are professionally involved in the field of investment and financing. However, the venture capitalists never prefer to invest in small businesses, but they can put their money if your business has suffered the start-up phase. Normally, the total amount of funds raised by venture capitalists is comparably higher, and that’s why it ‘s hard to persuade them for the investment.
Option 6: Business accelerators and incubators
They both work with similar objectives, but their functionality is different. Accelerator programs seek the ways to grow the startup, and the incubator program supports assists and establishes it on the other h and. Accelerator provides the mentorship while incubator makes available the necessary resources and services.
Also read: Some Considerable Tips to find Investors via LinkedIn
Option 7: Banks
A large number of start-ups prefer to take loans from banks, and thus, it is a significant opportunity to raise capital for your new business. Taking a loan from bank helps to keep the control of your business entirely in your h ands. There are several banks in India with various long and short term funding schemes.
Option 8: Non Banking Financial Corporations
You can also consider these microfinance providers if you are not able to get the business loan from the banks. These are favorable options if you haven’t met all banking requirements and need limited funds.
Option 9: Participate in “Contests”
Another option is participation in various business-related competitions and contests but ensure to stay at the top. You can promote your business and present it positively in front of the investors with the help of your product and a business plan.
Option 10: Governmental schemes
Despite many options, you can also seek funds from the government. The schemes like “MUDRA ” and “Start Up India” are launched to provide the required loans to the start-up firms. Under the recent Union budget for 2016-17 financial year, the Government of India will seed funds from 50 Lakh to 1 crore per company.
