Welcome to the second part of my previous blog. I hope you by going through that blog, you get an idea of importance and risks of money for your startup. So adding some more points to that, I am back again with an intention to make you aware of the other ways of collecting funds for your startup.

6. Raise funds by winning contests  

 

• There are certain contests which can help your business to get a boost. 
• It also helps entrepreneurs with business ideas to set up their own business. 

• To take part in such contests you will have to build a project or business plan or both. 
• Winning these contests can help you with collection of funds and also you and your business gets media coverage which leads to a free marketing of your business. 
• Some of the popular startup contests in India are smart India hackathon Microsoft BizSparks, Conquest, Let's Ignite, Nasscom's 10000 startups etc. buy the latest book of "gary vaynerchuk's: Crushing it!!"

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7. Bank loans 

 

 

• Banks can be a best friend of an entrepreneur.  
• If you are an entrepreneur or willing to be one then you should know about loans given by the banks.  
• Usually banks provide two kind of loans to entrepreneurs, one is working capital loan and the second is funding.  
• A working capital loans is a loan that is taken to finance a company's everyday operations.  
• These loans are not used to buy long-term assets or investments and are instead, used to provide the working capital that covers a company's short-term operational needs. While funding from a bank needs sharing of the business plan and the valuation details etc. 
• In India, almost every Bank provides SME finance (funding to small and medium-sized enterprises) through various programs. 
• Bank of Baroda, HDFC, ICICI, Axis bank are some of those examples in India. 

8. NBFCs 

 

There are some entrepreneurs who are not eligible for taking loans from banks. For these corporations like NBFCs or non-banking financial corporations provide banking services without meeting legal requirements of a bank. 

Click here to know about the top NBFCs in India. 

 

9. Government programs for Startup Capital 

 

The government of India has launched 10000 crore startup funds in the union budget 2014-15 to improve the startup ecosystem in India. Government source is the most reliable source for getting funds.  

Startup India is a very good example for this.

Click here to know more about such programs. 

 

10. Some other ways for getting Quick funds for your Business 

If you do not want to rely on others and want to be self-dependent then following some ways may become your favorite to get a push for your startup. 

 

A. Product Pre-Sale 

1.  If you have a trusted image among your customers, and through ads, banners, and plans then this method can be proven profitable for you. 
2. This allowed the customer to buy your product before you. 
3. This is a highly effective way to raise the money need for financing your business. 
4. Even unicorns like, Samsung Apple Xiaomi start pre-order their products well ahead of their official launch.  
5. Through this, you can also estimate the amount of demand you will be facing so that you can manage your supply. 

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• B. Selling assets 
   This is a very risky way, but if you are confident and well prepared for your business idea you can go through this way, and once you make enough profit you can buy back your assets. 

 

C. Credit cards 

1.  Business credit cards are one of the easiest and fastest way to get money for your startup. 
2. But it may be effective only if your scale of business is medium or small. 
3. After getting funds from the credit card you can pay it back in minimum payment. 
4. But you have to maintain your debts since carrying a huge debt is not a good image of a business owner's in front of the investors. 

 

Now, its time to end this topic but Scoobynel is not end it here and I hope this topic will be highlighted by us in coming future. Till then all the best for your future, Goodbye.