Most of the business ideas remain merely a thought and never get off the ground because of an initial investment. I mean there is plenty of genius brain in India, they have lots of unique and innovative ideas, but only because of funds they are unable to implement their ideas and make it realistic.

However, if your idea is unique, well planned, projected and structured, there are still a number of ways through which you can fulfil your dream.

I admire the person who chooses to be an entrepreneur as a career because it is the most conflict career ever. But if you are passionate to be recognised as a businessman believe me it would be the best ever career as well.

As an entrepreneur, and based on my more than 10 years’ experience or you can say struggle, your financial planning is even more important than anything else. That’s why, in this article, I will explore 6 different ways and suggestion through which you should get initial funding for your business to make your dream comes true.

1) Start with your own funds if possible:

The best way to start your business from your own saved funds. Many volunteers think that they need huge funds to start a business. Make your calculations strong and cut down your initial cost 0f investment. Although you must know the complete procedures on how to start business in India, yet there are some key components which you should keep in mind. When you project your ideas into reality there are many challenges that need to be taken care off. However, starting a business with your own funds leads to the following advantages.

• You don’t have to share profits with the partners or investor.
• If you arrange initial funds from your friends, relatives or other investors, you will be always pressurised for generating profits.
• You will have full control over your business and you are free to make your own potential marketing strategies.

However, there are some disadvantages of doing business alone which we will discuss further.

2) Ask your friends or family for investment:

You must have heard that rather than walking alone towards your goal it is always better to grow together. Two hands and brain better perform and can utilise available resources efficiently for getting the potential output.

You can delegate your workload to another partner so that you can focus on other significant affairs which are more important to expand the company. Your partner also plays a crucial role whenever you demoralise during the struggling phase of your business.

3) Ask your nearby banks for loan:

If you are unable to raise funds from the above methods, the third option is to visit your local banks and ask them to avail a business or personal loan. However, you need proper documents and personal creditworthiness to get a loan from the commercial banks but you can approach these banks and request them to provide business loans under government schemes like MUDRA Loans, MSME Loans, Startup India etc.

You can easily get a loan under various government schemes at a low rate of interest or sometimes you can get a subsidy through a proper and continuous approach.

4) Approach Angle Investors:

Angel investors are those individuals who invest their funds into new startup having high potential growth in future. Angel investors financing is a type of equity finance means, they hold equity (share) in the company for providing financial assistance. You don’t need to pay any interest on the fund obtained instead you will have to give some proportion of share/ ownership into your company.

Angel investors typically focus on capital growth, not on the profits, they generally exit by selling their equity to other investors later in future.

5) Venture Capitalists:

Venture capitalists (VC) also belong to equity finance companies typically interested in equity stakes of the company. Venture capitalists finance new startup companies related to software, technology, biotechnology or innovative business plan which have high potential growth. If you have a solid and illustrative business plan, you can approach to VC for initial funding and like angel investors, you don’t need to pay interest as well.

6) Crowdfunding:

Crowdfunding could be another way of fundraising when it comes to startup businesses. You can raise funds from friends, families, a friend of friends, strangers, other businesses or more, generally with the help of internet. There are lots of crowdfunding online platforms available, you can google it. Some of the platforms provide various other tools to facilitate the crowdfunding process.

Conclusion:

Hope you have gone through each option mentioned in this article to raise funds. The way you fund your startup depend upon which types of business you plan to start. I suggest if you are planning to start a local business (within your territory) you should go with the first three methods, otherwise, if your business is innovative, unique and have high growth potential, you can approach to last three options.

Moreover, if you already started your business and require more funds to expand, you can approach either debt or equity financing ventures according to your thought.