Only if having an idea was enough to carry out a successful business. You have hit the roadblock in your business journey that many entrepreneurs have experienced and conquered. To answer the ultimate question; how to get the capital for your business?
Well, not all of us have that kind of wealth to conveniently finance ourselves, or afford to let go of our entrepreneurial dream, be it of a budding startup idea or an established business trying to build back. At a certain point in your journey, capital becomes a crucial factor that could determine the growth of your business.
The mind attacks you with questions like, where do you start? Whom should you approach? How do you find the ideal funding opportunity? Several doubts and loads of google searches, but guess what? This blog will answer all your questions and queries whilst helping you figure out the path to get funding for your business. BBNC has compiled a list of options and reasons why a particular option would be an ideal source for you!
Let us explore and understand which option will suit your business requirement successfully!
Angel Investors are individuals who invest in an idea or a business in exchange for ownership equity in your company. They proactively invest in startups from the seed phase. (Duh! Shark tank guys) and if you are an individual with an innovative idea or have a futuristic plan for your business, this is your call to pitch your idea, in business terms, a pitch deck!
Angel investors are usually self-made businessmen or have successful private companies. Having an angel investor on board is equal to having an expert advisor. Take advantage of your resources!
Crowdfunding is a popular digital source to acquire funding for your business. Here your source of capital is the general crowd- normal internet users. Yes, you read that right! There are online sites to create a crowdfund, wherein you will explain why your business is a valuable investment and help the users connect with your vision. Successful crowdfunding can raise millions. Remember, you can always set a limit as per your requirements. It's an ideal source of capital for non-profit organizations, startups and businesses looking to reconstruct themselves.
Like Angel investors, Venture capitalists are firms looking for ideas and businesses with a secure growth graph to catch their attention. Unlike Angels, Venture capitalists provide funding with a high rate of return. It's an ideal option if you have big plans for your firm and need massive capital during your growth phase.
Bootstrapping or self-funding
Bootstrapping is nothing but using your own money or assets to fund your business. It can be from your savings or invested capital from family or friends, a preferred option for entrepreneurs who do not want to give up any ownership and stay inside their comfort zone.
Microloans or bank loans
Taking loans is a smart option as they have a low-interest rate. As a founder going through the hustle of trying to get capital or selling your idea can be exhausting. Applying for a loan could be your most helpful and safe tool for raising funds.
Initial public offering
IPO is a process in which your company offers shares of the company to the public. The funds get raised via public investors. IPO can be a profiting process if the plan is to grow and expand your business in the long run.
A self-explanatory concept, If your client, supplier or service provider, who profit from your business, are capable of investing in your firm, then it might be an opportunity to get them on board as your strategic partner. If they use your services and are confident in your business, this could be your funding path!
The Indian government has introduced many funding schemes and projects to help founders and entrepreneurs raise funds for their Startups and MSMEs. You can easily access these schemes online and take advantage of such opportunities.
There are ample opportunities for budding entrepreneurs and businesses to raise capital. The only thing required is to research and invest some time to pave a successful path for your business growth. This path will help you determine your business growth, such as the name of your company, source of capital, documents required, financial planning and profitable execution. It may sound pretty extensive and a tiring process but, this is where BBNC steps in. BBNC will act as your firm's advisor at every level. From discussing the term sheet to sharing allocations to the investors BBNC is your one-stop solution for all your requirements related to raising funds.
We wish you great success on your journey.