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Funding Options That Can Help a Startup Business Avoid Failure

As stated by the IBM Institute for Business Value and Oxford Economics, most of the Indian startups miserably fail within the first year of their operations due to lack of funding.

By Features Writer
Funding Options That Can Help a Startup Business Avoid Failure

Being the second largest business ecosystem globally, India is welcoming and introducing numerous business opportunities for aspiring entrepreneurs and franchisors. The country is now among the most favorable business destinations that holds great potential for lucrative and profitable business ideas. In fact, India is already witnessing brands that are penetrating the national business market with unique and different business ideas and offerings.

As stated by the IBM Institute for Business Value and Oxford Economics, most of the Indian startups fail miserablythin the first year of their operations. This happens mainly due to the lack of funding options, which is among the most common reasons.

Money: The Bloodline of any Business

Money is undoubtedly the most important component behind any businesses’ success or failure. People might enter the business world due to several factors like passion, dream, and others. However, the main idea is to grow and make a good amount of money, meet their requirements, and so on.

Money is ultimately the bloodline of any business. The journey of establishing and running a business is very long and it requires fuel, mainly known as capital or money. This is why most of the entrepreneurs during their initial phase of the business eventually end up asking themselves: How can I finance my business?

Funding eventually depends on the kind of business you are willing to run as an owner. Therefore, it is recommended that one realizes the importance of raising funds to kick start the business before looking for ways to attain the same.

Mentioned below are some funding options that might assure a smooth journey for your startup business.

Crowdfunding

Crowdfunding is an approach of raising a small amount of money that involves more than one person. It is those newer forms of funding option that has drastically gained popularity in the last 5-6 years. Crowdfunding is done through mainly the internet where entrepreneurs put up essential details about their business, mentioning the goals.

An effective description of a business plan is posted that can attract and interest consumers going through the same post. Consumers go through these different description of businesses posted on the platform and then decides whether to invest in a particular business or not.

Bootstrapping

Bootstrapping, which is also known as self-funding, is the most common type of funding option available in today’s time. It is usually considered as the most effective sort of funding, especially when you are new in the industry.

First time entrepreneurs usually face a lot of trouble while getting funding for their businesses due to the lack of traction and plan for potential success. Bootstrapping should be the first choice of business owners, who are usually invested completely in their businesses when it’s their own money. Also, even if a business fails somehow, there is no pressure of repaying the investors, which is eventually a big relief.

Angel Investment

Angel investors are those people that have a surplus amount of money and are looking for interesting and potential startups for investment. Angel investors come with rich experiences and so they might even guide or mentor startups in many cases as their money is on the line. Startups could think about seeking out angel investment as it has been proven successful in the past. Companies like Google, Yahoo, and Alibaba are living examples of the same.

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