Startup Funding Guide: An Entrepreneur’s Key to Assured Success
Foundation of every Startup begins with a creativeidea emerging from a curious mind. However, the idea alone isn’t capable of fulfilling the entrepreneur’s dream of setting up a Startup and run it. For that, they have to arrange funds so that the plans can be converted into action. In this regard, Startup funding plays a critical role.
Entrepreneurs look for finances from various sources so that the business can be funded and multiple activities in operation can be attained using the funds. As per a report presented by Statista, Indian Startup market saw a surge in terms of Startup funding with about $8 billion in 2019.
While the accumulation of funds is crucial to launch and run your business, entrepreneurs have multiple factors to consider before they start venturing it. Here, explore all that is necessary to getStartupfunding.
The increased funding for startups shows the improved condition of startups in India and the growth of opportunities. However, entrepreneurs should be aware of when and how to approach for Startup funds as it will help them take feasible business decisions.
When Your Business Can Be Funded?
Irrespective of what you think your business idea is capable of doing, it is a must to convince financers on the same note. And it will take more than just a plan to do so. Here, look at all entrepreneurs need to convince investors to fund their business.
Business type
Investors scrutinise your business idea for their feasibility, ability to generate demand, and profit earning capability. If your business qualifies the required mark for these parameters, it is most likely to be funded.
Self-sustainable enterprise
Any entrepreneur must not look for funds in the start even if they don’t require them. It is to note that accumulating funds from investors doesn’t ensure any success. Your business should be capable of sustaining on its own by generating revenues and profit.
Businesses can also invest in social media post writingto ensure they reach potential clients. It will help them generate profit and sustain in the market. When your business fails to do so, then only you should look for investors who can fund your business.
Why Businesses Need Funding?
Businesses require funds for various operations right from the purchase of raw material to payment of wages to employees. Here are a few such reasons why business needs funds.
More Read: 5 Major Market Research Mistakes Every Startup Must Avoid
- It is needed for scaling up operations or expanding business unit. Most businesses require funding for expanding business.
- Startup funding is a necessity when businesses need to gain a competitive edge in the market. They will be able to use the funds and improve their business strategy to ensure their business perform better than other competitors.
- Short-term or day to day expenses can also be met using these funds.
- Entrepreneurs can also look for Startup funds if they want to focus on research and development.
These are a few reasons why entrepreneurs may have to look for Startup funding. The ultimate goal is to set up and expand their business to generate improved revenues and profit.In any case, entrepreneurs require looking for potential investors who can provide you with the needed funds.
Various Funding Sources
- Debt investment – Entrepreneurs can apply for different forms of credit to accumulate funds. However, these funds have to be repaid in due timeand the borrower needs to pay interest for the tenor.
- Equity investment – Here, entrepreneurs can accumulate funds in exchange for equity or shares in their Startup.
- Convertible bonds and equity– It is an interchangeable form of funding sources wherein the stakeholder decides to switch between equity and debt depending upon terms that are pre-agreed.
Businesses can improve their performance significantly with the right strategy and funds. In addition, entrepreneurs should also market their business in a proper manner so that their business reaches the potential target audience and perform well. In this regard, hiring professional content writing services is a must if you want to build an online presence for your brand and reach the target audience.