6 main ways to arrange funds for a start-up

India’s economic fundamentals are getting stronger by the day. Start-up ecosystem is buzzing with activities. Entrepreneurs are coming up from every corner. Even recent demonetization hasn’t dampened the spirit. Entrepreneurs are ready to face hurdles and obstacles head-on whether they come at the inception or along the journey. And the arrangement of financial means remains the primary and major problem for any start-up-enthusiast. With a clear vision along and a deep drive to succeed, some sources of funding can be explored:

  1. Investors and venture capitalists: A simple and widespread way to arrange financial resources for a start-up is finding investments from investors and venture capitalists. You may have your investors as active allies or have them only as investment-providers, depending on the terms and conditions.
  2. Loan: These days you have multiple options of banks and financial institutions available in the market which can give out loan to you to begin your start-up-journey. Discernment of good loans in terms of various clauses and provisions is expected from you.
  3. Crowd-funding: This is the age of internet and you can arrange funds for your new venture in small amounts from a large number of people in the form of Crowd-funding.
  4. Government-funding: Our government every now and then comes up with various funding plans and notifications providing the preliminary capital to people who have start-up aspirations and who meet its different prerequisites. In many of those, the government exempts repayment to boost prospective entrepreneurs.
  5. Promotional campaigns: There are numerous promotional campaigns, competitions and events in the market today which want to explore great business-concepts and ideas. If you become hit, catch attention with your plans or win prizes, you can have an initial financial tonic to start the business.
  6. Start-up accelerators: Carrying varied programmes connected to entrepreneurship-development and a plethora of appropriate and well-oiled plans and financial instruments, start-up accelerators in the market aim to facilitate investments for prospective start-ups.

       We know for the fact that meeting financial requirements to start and sustain a business is the most challenging task for entrepreneurs. But if you are unswervingly committed to your aspirations, you will find an array of options to arrange financial means from various financial institutions and investors ensconced in the market.