Being an entrepreneur comes with several changes. And one of the most common challenges is funding. Pursuing dreams is not wrong but having no idea on how to get funding for a startup is!
Being an entrepreneur myself, I always believe in upscaling newbies with best possible solutions for their problems. May it be funding or survival, you need to follow the below mentioned ways to get where you wish to be.
Create a business plan
Before you get started with the funding stage, you need to have a clear idea and plan for what you are going to do with your brand or where you see your brand in the next five years. A good business plan will increase your chances of securing funds. This is because every investor wants to put his money in a company that assures growth. If you have a business plan that is worth investing, you will find many liable investors for your startup. Once you have funds in your hands you can easily get started with the daily grinds. And in case you get distracted, this business plan will always serve as a reference that will remind you how to proceed.
Visit a local bank
The next way for startup funding in India involves association with local banks and online companies that can provide small business loans. There might be many local banks around you. The best way is to reach out to such banks, know their funding policies and get qualified for loans for different aspects of your business. In case the bank denies your business loan application you can consider personal loans. In order to fund your initial business expenses, use the line of credit. While getting started with a business, one needs to make heavy investments. Local banks can turn out as true saviours in such cases.
Take help from friends and family
Your family and friends know you in and out. They can trust you and your brand as they believe in you. Never be afraid to ask for help from your loved ones. Startup funding stages in India usually start from home. Unlike a bank, you will neither have to pay interests nor collateral for the loan taken. Through asing funds from family and friends also has many risks. In case you fail to return back the amount taken, there are chances that you may spoil the relationship you share.
This is one of the most common terms used in startup finding. Angel investors are a kind of investors who can take an equity share of your business in exchange for the investment made by them. Though money is motivation, there are chances that the angel investor is solely interested in your business as well as the growth you make rather than just earning profits. Angel investors are likely to help a brand in its early stage, unaware of the profit it makes. They are the kind of people that believe in a brand, trust your plan and goals. A small meeting with an angel investor is more than enough to have them on board.
Find a strategic partner
You might have heard of the saying, 'two brains work better than one.' It is undeniably true that two people can perform better than one as two different brains with infinite ideas get involved together. As per a survey more than 80% of the company owners believe that partnerships are extremely important for an organization to grow. Also, liabilities get divided here, savings are shared, better results can be expected etc. a strategic partner will bring in new ideas and provide a great guidance on making the brand successful.
Starting a new venture is exciting but definitely not cheap. As mentioned above, it all starts with a strong business plan. Because that is when angel investors, friends, family, strategic partners and other crowdfunding platforms consider joining hands with you.
Follow the above mentioned steps and subscribe the channel for more tips on how to get funding for startup with 3-5x weekly videos on startups, success models and writing,