While launching a startup one primary concern that always arises is about its funding. In the initial stages of funding a startup, it’s important to understand how essential funding a startup is especially when one has multiple areas that require its funding. Investment is the essential key for the growth of a startup  when a person is a novice. Let’s look at some realistic ways to fund your startup.

1. Help from family and friends

The most reliable and trustworthy individuals are friends and family. So when in need it can be a great idea to seek help from them because family can always provide you with sound advice which can act as a guiding light for you. There are disadvantages to this option too as money can make relationships unstable, so think wisely before doing so.

    2. Your day job

Side hustling can always be an option to fund your own business.Perhaps if you are working toward expanding your startup, you should never neglect your current position.Side hustling can also help you to make links with companies which can help you to expand your startup.These little saving for a period of time will take you a long way.

     3. Donations

Non profit organizations can also ask for donations. Effective planning for a startup is essential to attract investors. There are many examples of organizations that work on donations.

Funding models :-

Here are a few funding models for Non Profit Organizations

Heartfelt Connector, Beneficiary builder, Big Bettor, Member Motivator, Policy Innovator, Public Provider, Beneficiary Broker, Market Maker, Resource Recycler and Local Nationalizer.

Other possible models could be nonprofits supported by earned income initiatives unique and unrelated to their primary task-related activities could be one potential paradigm. Nonprofits that functioned only on a fee-for-service basis, either in a business-to-business or direct-to-consumer manner, without significant supplemental fundraising (from members or former beneficiaries) or underlying government backing, were another conceivable model.

What’s interesting to note is that a few non profits supporting themselves using the above mentioned funding models were not even present among large non profits.

4. Loans

Although it is challenging  for a startup to get a loan without any assets than an established business that has already made its mark, this option can still be considered as there are various schemes for small businesses and one can get a lone by evaluating the kind if loan one needs this shows that you have a clear picture in mind for your business and will probably execute the plan as well.

 Checking credit scores for your business and gathering information regarding the required documents and researching based on your business qualifications  and comparing lenders will help you grab that loan for you. Here to fund the startup, personal loans can also be used.

5. Venture Capitals

There are times when you will look to Venture Capitals to fund your business. It is no easy process to fundraise, for instance If you talk to 100 investors only 5 might say yes yet this will help you achieve success. What’s interesting to know is that VC money drastically increases your exit and price. Venture Capitals are extremely risky themselves so getting funds raised by them is extremely difficult too.

Following are top Venture capital firms:- 

Tiger Global Management, Elevation Venture Capital, Sequoia Capital, Indian Angels Network, etc.

6.Angel Investors

This type of investor closely resembles VCs in every aspect. However, they vary in terms of ROI channels. Angel investors can also choose between taking an equity share or a convertible debt. An angel could be very driven to support your success through mentorship or by providing specific management assistance because their financial interests are at stake but The fact that angel investors often demand between 10% and 50% of your firm in exchange for capital is a significant drawback.

7.  Crowdfunding

Online resources are also available for funding startups. Some popular sites allow private individuals to contribute to the capital. Your business compatibility with the funding site will inform your choices. However, having a solid business portfolio attracts more investors nevertheless in today’s day and age where everyone is active on social media and if you are a pro at social media this might be your best option.

Crowdfunding platforms:-

Indiegogo, StartEngine, GoFundMe, Patreon, Mightycause, Ketto, Kickstarter, Milaap and Wishberry to name a few.

8. Government schemes

Government also provides schemes to help small businesses to grow. Mostly there are state wise schemes. Moreover there are schemes under  Micro Units Development and Refinance Agency Bank which provides funds to the small and medium enterprises.

Famous government schemes:- 

Prashan Mantri Mudra Yojana, Subsidy offered through national small industries Corporation,Credit Linked Capital Subsidy Scheme for Technology Upgradation,Stand-up India Scheme.

9. Contests

Various competitions take place between different startups to attract investors. One famous show that got really popular was Shark Tank. One can take part in such contests or just locally run competitions, social media competitions  Here startups are required to prepare solid plans which later are presented to the investors. Presentations can be done on a group or individual basis. This is also the most common method to fund your startup .and promote your business and present your pitch effectively to a large number of audience.

Local Contests:- 

SAIA and SPTIP , Slingshot 2022, Next big idea contest

Despite these contests one thing to remember is that luck could play a huge role in you getting selected in these contests as chances are one might not get chosen but nevertheless it could be worth taking a risk as you would have spent this time in planning and presenting your business to the interested audience.

At last it depends on the type of business you have which determines the suitable way of funding that you can go for. One should keep the main factors mentioned above while trying  to establish the efficiency in their organization to excel in funding their startup .

Follow Startup Story