Ways to fund your startup!!!

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Money Money Money!!!

This is the main buzz word which is important for an entrepreneur after working out on his Idea…

We face this problem while thinking about any new startup…

So what are the possible ways to raise money for your startup??

This article will also clear your glossary of entrepreneurship..

Bootstrapping: Its your plastic money.Believe it or not, it is the most easily accessible and easiest way to fund yourself…isn’t it..??
Yeah but with a risk that while you are making your startup fund on the basis of your credit card, you may fall into a black hole. Have you heard about google?? …Yeah I am kidding , you must have. You must not have heard that the google was funded on this “Bootstrapping.”…amazing !!!

3Fs: This is the most common word in Entrepreneurship World…”Friends Family and Fools”…its easy to raise a small amount from these sources.And you dont even need to explain them your B-plan, charts, cash flow etc.
But The main problem is that they don’t understand the business world. For them every startup must be a successful , but startup may fail. Even the success rate of experienced VCs is only 8-10%

Bank Loans: If you have a good credit background and good track record, Banks may fund you. But generally it is observed that banks refrain to fund the startups…the reason!!!!!…”STARTUP MAY FAIL”

Government Grants: According to me it is best way to fund your startup. Govt. of India has various good plans and schemes under which they are funding the statups.If your startup is innovative or related to woman empowerment and rural development, you have a good opportunity to reap.

Partner: Do I need to explain??? I think No…

Angel Investors: The most exciting keyword…isn’t it…Generally Angel Investors Fund a large amount. Along with the money they also provide you mentorship and their experience to you. But with this option comes a problem of “Dilemma of Rich or King”….You have to share your holding and position with investors…..for more details follow the link http://techaloo.com/founders-dilemma-rich-or-king/

Crowd Funding: This is the new and emerging Idea in this field….in this field your friends, colleagues and strangers fund small amount into your idea.It may be through Social media.

These are few sources of funding , apart from these there are various other methods too…

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Mohit Bansal(23) is B.Tech in Electronics and Communication Engineering from Indian School of Mines, Dhanbad, India. He has interest in business and entrepreneurship and has published couple of research articles. He is also associated with various NGOs. He is with Techaloo when it was just in concept stage. The Techaloo site was not existing even then. Currently Mohit is working with Mu Sigma as a Business Analyst Profile.

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