Got an idea, got everything sorted, made a business plan as well to kickstart the business but let’s wait for a while and consider the funds to open a company or getting a space to establish your business.
Here are a few ways you can understand funding and get it sorted for yourselves.
Taking a loan from a bank or anybody else can be a best option only for the time period of setting up a business, there is an agreed-upon time for you to pay back that loan along with the interest.
This could also mean you are lending money from friends or any individual to return them after a certain time period with the interest added as per their needs and you will have to complete it otherwise your interest on that money might increase depending on the time you take to pay back.
Taking a loan can be good if you know that the probability of success is high and that you would be able to pay back in the given time period along with the interest, otherwise it is a bad idea to go for a loan if your business is not going well.
Bootstrapping is to get funds for your startup on your own. You can get that by working on a side gig to get some money for your business. This might look like it is going to be a real hectic task but believe us there are many people out there who want to start a business but before that they get a job to collect funds for their business.
There is a simple logic behind it as well, how can you expect investors to fund your business if you can not even help yourselves with the same. Investors risk their money by providing funds to entrepreneurs who have just started up because there is no surety of getting the benefits of pooling in their money so why don’t we make sure that we help ourselves first and then if any further help is required then only we will go for that.
It might mean that you are saving the money from your monthly allowance and doing any part time job to get money. Consider it a way to increase your own business, as the primary source of income to sponsor your startup.
It could be really satisfying for you as it will give you a mental satisfaction that you started something from the scratch and throughout your way, you did not get any help from anyone.
Ask family and friends
Your family is always with you even if your startup idea has nothing to gain in future they always are ready to help you with anything and when it comes to money they will prefer giving you money right when you ask them so you don’t go door to door asking for help and money.
Consider your close friends for getting money, true friends are those who help you when you need it the most, so we are pretty sure that asking them for a small amount of money would not be a big deal.
In return you can ask your family or friends for equity in your business so this does not turn out to be a problem for them as well. If you are able to grow your business it will be a benefit for both you and your family or friends.
Investors, incubators, accelerators or angel investors
Pitching an investor of any kind, let’s say seed funding investor or an accelerator or an incubator anybody you wish to get help from, is also a great idea. All of the given people help only at one cost if you offer them equity in your business or anything that would be helpful for them if they are funding you.
There are many investors who support only a few investors that share the same niche as they do, so kindly keep in mind that you have to pitch only those investors that support the cause of your business.
In case you are wandering where to find them, so we will tell you how to find investors who can help you with your business, out of the many ways one way is online through websites, one such website is startup paisa. Startup paisa helps you to get access to as many investors as possible, and for investors there are many startup businesses who wish to grow and have potential to grow in future.