While spearheading a business idea into a model, money is as important as the amount of hard work you put in. People might tell you money is not important but here is a myth buster – Money is of prime significance if you want to start rolling.
As long as the idea is in your head, you may take the liberty not to think of funding, but gradually, your model ought to be such that it will grab eyeballs of the investors and fetch you all you need for your startup.
Here is a list of 10 ways to get your startup funded:
1. Angel Investors
The well-known community of people having an exemplary code of conduct are of great help when it comes to funding a startup. These investors have a wide network of contacts via which they help entrepreneurs procure funding. Regardless of where you meet them, acquaint yourself in brief and pitch your idea. He could be the funder you were looking for. Take advantage of their well laid network and make them an offer they cannot refuse.
2. Bootstrapping
When a startup kicks off with a lack of funds in their pocket, they are considered to be “bootstrapping”. The dearth of external funding and aid can be a personal bane or a boon. May be a couple of months down the line, your venture will be well off and you will not have to worry about paying your investors.
3. Crowdfunding Websites
It is the practice of a project or venture being funded by raising monetary contributions from a large number of people. The number of investors who frequent crowdfunding websites is in thousands. These sites are open to people from all fields- professional investors, philanthropists and even the general public.
4. Startup Launch Platforms
There are portals that serve as the bridge to let funders meet founders. These platforms provide the budding entrepreneurs with the compulsory details to pitch their idea and the way forward.
5. Social Networking
Nowadays, social media plays an important role in everything that is happening around. On similar lines, online platforms like LinkedIn which is a professional portal to connect the working class is of great help for entrepreneurs. You may end up meeting potential investors for your startup.
6. Private Lending
While the concept of private lending is relatively simple, there are three elements required for this procedure to transpire: a borrower, a lender, and paperwork. For all intents and purposes, it refers to an investor who funds by taking loans by using his real estate as security. Their objective is to maximize their profits and earn much more than the interest they pay.
7. Online Lending Platforms
These are lending sources that have a light procedure in terms of securing funding. These are platforms that provide you with loans without much paperwork unlike banks but have a glitch- higher rates of interest. One must take this option only when the business model is well laid out and you foresee money flowing in in the near future.
8. Small Scale business agencies
Government supports small business agencies. A major chunk of the existing business agencies registered are recognised as small. Their lending rates are minimal. Unlike private lender who aim to increase their gains, small business agencies want the good of the economy and hence provide loans at affordable interest rates.
9. Accelerators
There are investors who invest in your startup because they see potential in it to last long in the competition and want to see it grow. They are ready to use their range of resources for your business and become a large part of the company is terms of shares they hold.
Also Read: 50+ startup accelerators and incubators in India
10. Friends and family
Word of mouth is often the easiest way to win your initial customers, create your base, and embark on your entrepreneurial journey. Despite the initial stages of hard work and struggles, you survive because of the support you garner internally. Mostly it means their time, support, empathy or in some cases their capital. If you manage to get money flow from your private network, you can start your business immediately.
After thoroughly considering all the points mentioned above, receiving assistance from private lenders seems to be the most viable option available to startup founders looking to get started without delay.
This article has been contributed by Himanshu Jain, CEO of LegalRaasta, an online portal for company registration and LLP registration in India.
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