Money is one of the important factors for your startup. Raising money for your new startup isn’t as difficult as you may think. However getting the right source of funding is slightly more complex. Money or funding sometime really affects your startup. It is not necessary that you should have deep and heavy pockets but should have some amount of money so that you won’t stick up somewhere in middle of a sea due to lack of funding. Each source of capital has it unique advantage and disadvantage.Here are some of the most reliable sources when it comes to Raising money for your new startup:
CROWD FUNDING
One of the ways of raising money for your startup is crowd funding. Crowd funding means raising money from public i.e. Your project is funded by the public using their own personal fund. The main advantage of crowd funding is you do not have to return back their money or give any equity in exchange. Crowd funding takes place mostly online. Some of the crowd funding websites for small businesses include
http://www.wishberry.in
http://signup.pikaventure.com
SELF FUNDING
Using personal finance is one of the first sources that you should consider when it comes to raising money for your startup. You can obtain money from your saving account, credit cards, selling your assets etc.
BANK LOANS
One of the most common things through which small business raise their money is through bank loan. Initially startups should avoid taking loan from banks. One should look at bank funding only after the product has gone through seed or venture cycle and one wants to commercialize it further.
PERSONAL LOAN OR MORTGAGE
You can take loan from your friends, relative or small business person by keeping some valuable article on mortgage.
ANGEL INVESTORS
Angels typically come into the picture at a start-up's seed stage, when the business idea is just a concept. The benefits of receiving angel investment go beyond the purely financial. The advice and connections that a good angel investor can offer can be equally as valuable. Angel investors are willing to take on the risk of a brand new startup. Even world's largest companies like Facebook, Google, Twitter, Skype have received funding from angel investors.
FAMILY AND FRIENDS
The easiest way to raise money for your startup is from your family and friends .They doesn’t expect any kind of returns from you. Your family and friends want to see you succeed. The major disadvantage is that it might even spoil your relationship with them.
VENTURE CAPITALIST
Venture capitalist is that investor who invests in early stage startup with high growth potential. Venture capitalists received equity in the business in exchange for funding it.
BUSINESS PARTNER
You might not have the money to get your business started but maybe you know someone who does. Of the Inc top 500 businesses, 28% received seed funding from a co-founder. You can get money by adding more partners into your startup. While adding one thing should always be taken into consideration that your equity is also get divided. While adding co founders or partners there are many factors apart from money that should be taken into account.
Article by Krunal Ahir
Crowd funding is awesome!
ReplyDelete