3 Amazing Tips For Funding A Startup You Can’t Afford To Miss!
You may have an excellent business idea, but it won’t mean much if you don’t have the right funding plans in place to not only make your business happen but allow it to succeed.
Funding is a financial investment done to start and run a business, it can include investment in an organization for development in marketing, stocks, inventory, sales, manufacturing, and product. Most of the time, startups raise their funds to expand and estimate their businesses.
Initially, it is very necessary to analyze all angles of your business and your future goals. Later the further breakdown starts with each type of funding opportunity so that you are sure of starting your business off on the right foot. One wrong move when it comes to finances, and you could be back to square one. Below are the 3 Amazing Fundas for Funding a Startup.
Table of Contents
Crowd Funding
A new approach of funding start-ups that has just recently taken the world by the tsunami. Platforms like Kickstarter or Indiegogo are great examples of websites where you create a crowd-funding campaign. If you’ve never heard of it, the way it works is this: Anyone can contribute money toward helping a business that they really believe in.
An entrepreneur will put up a detailed description of his/her business on a platform such as Kickstarter–goals of the business, future financial strategies for turning a profit, the target audience, how much funding he/she needs and for what reasons, etc.–and then consumers can read about the business and give money if they choose.
According to start-up experts “The most successful campaigns seem to come with a good story. While most Entrepreneurs are inclined to highlight the product and hide in the background, on crowd-funding sites, the entrepreneur is the story.”
Venture Capitalist
A venture capitalist investor is essentially a professional group that looks specifically for startups to fund. As you might imagine, this option has a lot of money available to offer to startups and plenty of resources to actually help your business succeed.
However, there are a few major downsides to this option. For one, they typically look for larger opportunities that are a little bit more stable, meaning the company would need a strong team of people and even a few million dollars.
Small Business Loan
The safest and oldest way to get funding is through the bank. There are many specialized options available for situations like small business ownership (such as microloans), but your challenge here is finding your way through such a tough lending period. When you go into the bank, you have to have to be a “CHITRA GUPT” able to present how every paisa of the loan will be spent, and even then sometimes a first-time business owner seems too risky to the bank and you won’t get the loan.
Conclusion
The above 3 Amazing Fundas for Funding a Start-up are a great place to start and bring the most success to the majority of companies. However, there are other, less-popular options for funding including self-funding, sweat equity, government grants, and more that do work best for certain situations.
Shashi kant Pandidhar
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