You might have a brilliant business idea which you’re planning to develop upon, but, if you don’t have enough funding, your idea might never really take off. Internal and external funding schemes can help your idea prosper.
Here are a few ways to get funding:
How to get Internal funding
1. Acquire accrual internally
Just because you want to follow your passion and build around your idea doesn’t mean that you have to give up on your existing job. You wouldn’t want to be completely broke when you venture into the entrepreneurial scene which is why working on an alternate job and funding your idea simultaneously is a good idea.
2. Take loans
If you have a good track record and a gurantor, getting a loan from a bank shouldn’t be difficult. Loans are easy and suffice the requirements. Also, some loans are offered at low interest rates as well.
3. Charity/crowd funding
This is a very rare method of collecting funds but sometimes it actually proves to be very useful. In this scenario, you get funded by a lot of people who contribute a minimum amount.
Example, the movie Manthan which was based on the real life story of the dairy brand, Amul, was crowd funded.
Ways to get external funding
1. Get social
Don’t be shy especially when you’re in dire need of money. Join business networking groups which are available both online and offline. Network and connect with people from the same industry. This will help you understand the industry better and also learn where you’re going wrong. In various business events, start pitching your business ideas to people. If you don’t have faith in your idea, you can’t expect other people to believe in it. Once, the potential investors feel like you’re a good bet, brimming with confidence, they are likely to give you the deal.
2. Presentation platforms
Pitch your ideas on platforms like Shark Tank for potential investors to be interested in them. these platforms will not only enhance your art of pitching but also give you an exposure about the world of entrepreneurship.
Make sure that your pitch stands out because that is what most investors invest in.
3. Small investors
Instead of starting big and looking out for investing giants in the market, start out small and pitch your ideas to small and localised investors. The minimal amount of funding you receive you get from them might turn out to be enough to suffice you in the initial stages.
4. Start-up accelerators to the rescue
Join one of the various start-up accelerators available in the market to increase the opportunities available in the market. Just because you’re a part of start-up incubator doesn’t mean that you are bound to get funding immediately. Instead, they groom you in terms of mentorship and development to help you reach your goals.
In event organised by these accelerators, a series of pitch decks are presented by start-ups to investors. It is easy for investors to select an idea that wins their heart and mind.
Image credit: Entrepreneur