How to get Capital for your Startup |
Posted: December 4, 2019 |
Every year more than thousands and lakhs of people go for launch their own business. But their major concern came forward that how they are going to fetch so much money to establish a good business as well as take it forward. As to face the reality every small or medium business requires funds to survive and face the competition as well. In addition to this, we can say, cash is the lifeline of any business. If the business lacks money then you will definitely lose access of numerous resources in order to take business forward. Then it may also lead to game over for the business. For any new entrant it is very important to first learn how they are going to get so much money. However, there are number of ways to fetch money and take your business ahead. Raising capital at frequent intervals of time is very crucial from a startup point of view. As they require money and assistance as well to survive and face the competition while being in the presence of established businesses. Whereas, now it is becoming quite easier for startups to secure a great amount of capital form different sources. But one needs to be aware of all such possible options and these are as follows.
1. Funding your own Idea: Initially, every startup starts with its own funds. It is one of the most common way of funding where founders or team members put their money together for the startup. Funding your own business has benefits as well that it doesn’t require other ways of funding the business, excluding the Crowd Funding. Raising money by yourself gives you control over business at the premium stage. 2. Crowd Funding: Crown Funding is one of the most fashionable and widely accepted concept among the startup or entrepreneurs. It is kind of taking loan, pre-order, investment or contribution from more than one people at a time. Basically, for a crowd funding the person has to go with a proper description and details about the business and its future scope. Then only the respective person or the company help startup in respect of money or bulk order so that work gets acclamation and wide acceptance in the market. 3. Angel Investment: Angel Investor is an individual person or a business which are having a lot of money and having a great interest in making investment into the particular business. The angel investors also work in a group of networks to witness the proposal before investing in any new venture. Many reputed companies have been supported by angel investors like Google, Alibaba, and Yahoo. 4. Venture Capital: Usually the venture capital invest in large growing companies with new technologies. A venture capital usually invest about minimum of $1 Million. Not all the venture capital firms invest in startups. The companies often prefer to invest at a later funding stage.
However, there are many other ways of fetching and raising funds for the startup. But the only thing matter is to choose the right and best way for you and your business growth.
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