Getting your business idea off the ground can be a daunting task, especially if you’re on a tight budget. Luckily, there are plenty of funding options and ways to get your idea off the ground.
Startup business loans are the important sources of funds to meet the requirement of your new company. You can also meet venture capitalists and ask them for help. Read on to know more about the methods to get funds for your new business or start-up:
- Ask for help from friends and family
Getting a loan from family and friends might be a great way to get started if they believe in your idea. With a loan from family or friends, you won’t have to worry about raising money from investors to get your firm off the ground.
Friends and family have been shown to be the most effective sources of support for businesses. If you take funds from your family, you can also repay the loan easily with convenience.
- Involve an angel investor in your new business or start-up
Angel investors are wealthy people who are interested in putting their money into promising new businesses or start-up ideas. They also work together in groups of networks to screen the investments before they invest. In exchange for the funds, these investors often ask for a stake or equity in the company, so you don’t have to worry about paying them back. In addition to funding, they might provide guidance or mentorship.
- Crowdfunding platforms
In this method, an entrepreneur must submit a complete description of his company, including how much capital he needs and why, to a crowdfunding platform. Consumers may read about the firm and donate money if they appreciate the idea and the objectives it aims to achieve.
Volunteers can make online commitments to pre-purchase products or fund money. Anyone may fund money for a cause or idea they support.
- Venture capital
Venture capital funds are funds run by professionals who invest in businesses that have the potential to grow. They frequently put money into a company in exchange for stock and then get out when it goes public or is acquired. VCs provide expertise and mentorship and act as a “litmus test” to see where an organization is going. They look at the business from a sustainability and scalability point of view to see if it can last and grow.
- Business accelerators and incubators
Business accelerators and incubators function as a combination of shared workspaces and mentoring development centers. Businesses that are just getting started could benefit a lot from working with some of the most inspiring people.
- Winning contests can help you raise money
Winning competitions may help you raise money, and participating in more contests gives you more opportunities to generate funds. This kind of contest requires you to create either a product or a business plan in advance. Aside from the monetary prize, winning these competitions may result in some media exposure. NASSCOM’s 10,000 start-ups is a popular start-up contest in India.
- Government programs that offer start-up capital:
The Indian government has introduced a slew of initiatives to improve the country’s start-up ecosystem. The “Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)” gives small and medium-sized companies loans of up to Rs. 10 lakh at an affordable business loan interest rate.
To get a loan, you have to submit your business plan. If it is approved, the loan is sanctioned.
- Start-up business loans:
As a budding entrepreneur, if you want to start your own company and need financial support, you may apply for a start-up business loan from prominent financial institutions or NBFCs. You can also get a high-value unsecured business loan from one of the leading NBFCs like Bajaj Finserv at an affordable business loan interest rate.