Several intelligent people might have become very successful in their lives by venturing into their own business, but their pockets didn’t allow them. The lack of capital is one of the biggest reasons entrepreneurs think a million times before launching their business. Money is the heart of any business. No company could begin or sustain without it. It takes blood and sweat to turn an idea into a business, and without money, it is not at all possible. The first thing you should focus on is generating funds which is one of the most challenging tasks. It is effortless to say but very hard to implement. Especially, in India, with low incomes and high expenses, not everyone could become an entrepreneur despite having unique ideas. That doesn’t stop the country from bringing in new businesses to the market. The government and people have been working together to push all small businesses in their early days.
Let’s have a look at how you can get money to start your business in India!
- Personal Savings
One of the best ways to get money is to have your savings. The earlier you start saving, the earlier you will start off working on your dream. Bootstrapping is what people focus on these days, which means sourcing your business through a personal account. It is pretty tricky these days, but it is necessary. You could either ask a friend or family member to provide you with funds on some terms and conditions, which will help you in establishing yourself. For first-time business owners, it is a painstaking task to get the funds.
- Angel Investor
Angel investors are a big blessing for first-time business owners. These are the wealthy business people who have huge investments, and yet, they are keen to invest in innovative and productive ventures for their benefit. You should approach such people, and if they like your idea, they will surely opt for offering you the amount you require to set up your business. In terms, they might demand equity from you, or they might provide you with the amount on some interest rate for a specific time. It all depends on their interest in your venture.
- Online Lottery Games
Many online games might allow you to earn some extra cash and help you in finding your business. You can opt for the lottery games as they might offer a better chance of monetary benefits. You might come across the best international lottery agents in India who will provide you with the most trustworthy competitions and deals.
- Venture Capital
Venture capital is a similar idea to angel investors. Here, the firms offer funds to businesses that show strong potential and signs of success. They believe in profits. If they feel the company will do good, they might provide you with significant funds. In return, they will also demand equity in your business for security reasons. The venture capitalist’s firm mostly takes out all their money once the equity gets profitable or when the company is being sold.
- Bank Loans
You might want to consider taking a bank loan. If you have never been a defaulter in your bank’s eyes, then you should seriously consider approaching your banker to ask for the policies regarding loans for startups. Personal bank loans are far better than commercial ones as they have lower rates of interest. Moreover, you can also opt for a home equity loan depending on your condition and the bank’s policies. Go through all the terms and conditions and make sure to opt for the right path.
- Microfinance Providers
If you have tried all banks, family, and friends and yet are unable to get the loan, you should look for microfinance providers. Some financial services providers come to the rescue when the banks fail to provide you the desired amount for several reasons. Some people are unable to fulfill the requirements of conventional banking, so they must opt for business loans offered by microfinance providers.
- Government Grants
In the past few years, the government has been promoting entrepreneurship in the country and is helping the startups with ample funds to bring their idea into reality. The government has been offering grants to the people to assist their remarkable business ideas. You must opt for applying for government grants, private grants, and also local funding programs. There is not much the government is doing for the betterment of the people.