Best ways to apply for funding for your startup

You have an idea. You gather up the courage to build it. You collect resources to fabricate it. You finally get a chance to execute it. And you stand there, with a smile of relief, looking up at your business grow.

Did you notice when I talked about collecting resources? Yeah, you did. How can you miss out the most crucial factor that helps to execute the whole idea?

But where do you get these “resources” from? Where do you get all the “money” to fulfill the needs?

Well, funding is the answer to your question.

Great executions need great funding. Here are a few out of the box ideas as to how can you gather funds for your startup.


1. The bootstrapping idea for funding

It has a lot of advantages. To state sum, you can easily access funds without any bureaucratic obstacles.

What exactly is bootstrapping? In simple words, bootstrapping involves using the saved up funds of friends and family.

This seems helpful when you have a generous hand over your shoulders along with flexible time period of return or interest charges.


2. The angel investor idea for funding

Angel investors are persons with a large amount of monetary value. These are people who are willing to invest in ideas that might be new to the world.

Angel investors sometimes come together in groups to scrutinize business proposals, in order to select the perfect candidate to invest in.

Angel investing idea has certain solid advantages as it offers mentorship alongside capital for the startups. They are also willing to take risks on the business idea as they anticipate a heavy return on investment from your startup.


3. The venture seeking idea for funding

Venture capitals funds are managed by professionals that have a keen eye for seeking out companies with great prospects.

Their modus operandi involves them investing in a solid business rather than equity. Once there is an IPO or acquisition of the business they are partnered with, they then pull out and seek other investments.

The mentorship and expertise venture capitals bring to the table can also sustain a business or company effectively. Companies with astronomical growth rates such as Uber, Flipkart have a pre-designed exit strategy that enables them to reap huge profits that they can, in turn, re-invest in the growth of their company. Venture Capitals effectively monitor the progress of a company they have invested in, thus ensuring the sustainability and growth of their investment.


4. The Business incubator idea for funding

Businesses that are just starting out can access funds provided by business incubators and accelerators. The programs offered by them can be found in major cities across the globes. Slight differences separate the terms “business incubators and accelerator”. Business incubators basically nurture business while accelerators fast-track businesses. In addition to all of this, Business owners receive mentorship from their investors. Moreover, Connections can be made with other startups.


5. The- Raise Money through Bank Loan- idea for funding

Banking institutions provide financial backing on loans to individuals who approach them with a solid business plan. The business plan must be well structured to convey the modus operandi, profit forecast and estimated time of maturity.

The financial provision of banks is in two forms, they are working capital loan and funding. This loan is designed to traverse one full cycle of revenue generation. Stocks and debtors usually have leverage on the limit This process involves providing the business plan and concise information of the valuation, alongside the project report on which the loan was sanctioned. Also, Large capital can be accessed by entrepreneurs. Moreover, Capital provided can fast-track the process of income generation



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5th January 2019 At 11:45 am

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