How to raise money for your startup? Running a business is not an easy task, especially in the beginning or say in the initial period. The reason is, being lack of fund and entrepreneurs being deficient in fundraising potential. Probably this is the reason why most of the businesses often fail after operating for a while. Usually, entrepreneurs began the journey of their business without pondering over this major part, that’s revenue-generating potential. 

However, funding and source of funding highly depend on the nature and characteristics of the businesses but few common and universal practices can be employed to raise the fund for the start-ups. Here, in this article, we have mentioned those ways through which one can efficiently raise money and fund for their business. 

Bootstrapping

Bootstrapping is the self-funding ways to raise money and revenue for the businesses. This is one of the most important and highly recommended ways for any start-up in their initial period. Initially in the beginning the entrepreneurs face problems to gain the investors as all those people hunt for the good previous results before investing. 

In such a scenario, in the beginning, if the sole-proprietor doesn’t find himself to be enough capable he can also seek for partnership or can ask the family members and friends to invest. 

Crowdfunding or Government Programs

Crowdfunding is more or less like a loan. Here, the entrepreneurs confess about the goals and the business plans to the public and to the prospective consumers. He speaks about the business ideas, the potential and the goals of the business and if the consumers like the ideas they invest in the business. Other than that, there is one other option of getting the funds from the Government, the government keeps sharing the number of plans for the startups and one can easily employ those funding options for the growth of their businesses. 

Get Common Investors 

There are angel investors out there, who got enough interest in investing their amount as a fund in the upcoming and new startups. There are a couple of such investors working in groups or have a team willing to invest, sometimes they also help with the advice and suggestions. There are investors looking for 30% equity and they prefer to have more risks for expecting higher profits. New businesses shall seek these investors and collect fund for the growth of the businesses. 

Venture Capital 

Venture capitals are the funds invested by people willing to expect a good dose of profit in the return. They usually invest in businesses against equity. Venture capital is highly recommended and often appropriate for small and new businesses willing to grow at a fast pace. But, businesses need to assure about the return to the investors in the beginning.  

Business Incubators or bank loan can help 

One can also ponder over taking funds from the banks, however, this is one of the most recommended and followed sources for funding. Banks often offer loans on the form of either funding or for working capital. 

Funding or generating revenue from banks has been followed by the usual process of sharing the business diagram and the goals along with the valuation details and if the bank finds your details fine and look at the potential for future growth, they often end up allotting the fund without much hassle. This is also the preferred source because it doesn’t involve any huge amount of interests. Banks are highly kind to the new start-ups.  

Conclusions

If an entrepreneur willing to grow their business while moving at a fast pace, they shall switch on the various funding options available around them. We believe, if you remain restricted on bootstrap for long without utilizing and employing external sources of funding, there are chances that the business won’t be able to attain that much turnover further. Therefore, one shall always explore all those funding options accessible to them to achieve the desired business goals. Here we spoke about all those common sources through which one can attain funds for their business.