Some of the best business ideas in India have come from first-time entrepreneurs. Today, the country is home to several unicorns across multiple sectors.
Inspired to leave your 9 to 5 job and go the entrepreneur way? There is no better time than now if you have the right ideas for a business startup. Shortlist which ideas have the best chance of success and develop a comprehensive business plan around them. Do note - it is always best to pick a product or service about which you have in-depth knowledge or something which you are passionate about.
Even the best ideas for a business startup can fail if you do not create a plan to back them up. It is a pure, old-fashioned, “write it down on the laptop” exercise rather than keeping it bottled up in your head. Make sure that you write it out in detail that should cover areas like the initial cost to set up the venture, organizational structure including the number of employees, their profiles and pay scales, along with an analysis of the market.
This gives you an overview of the range of financing that will help you kickstart your entrepreneurial venture.
You cannot start a business without having sufficient funds to cover your expenses as outlined in your business plan. Here are some quick ways that can help you raise funds that can transform your dream venture into a reality.
Many try bootstrapping the business without taking in little or no outside investment. This type of fundraising is suitable for those who have brilliant business ideas but no time to approach large investing firms. If the venture kicks off successfully on minimum investment, there will be a better chance of raising funds from external sources or investors in the long term.
That said, in order to bootstrap, you need to have an ongoing revenue stream either through a job or another business or completely rely on your life’s savings.
It can work for small startups and is a popular source of financing for this segment. However, if your business idea requires a significant influx of funds, then you may have to explore fundraising ideas to get your startup off the ground.
Crowdfunding is quickly gaining in popularity as a reliable source of raising funds for startups in India. As the term implies, crowdfunding involves raising funds from more than one source. Generally, these are individuals who may or may not be known to you and are willing to invest in your project because they believe it will succeed.
Needless to say, their belief stems from how convincingly you have been able to sell the viability of the project to them. Typical information will include the business concept, potential audience and target market, current market analysis, competitors and expected returns.
If your business is at a pre-seed stage, then crowdfunding can be a great source of raising funds. The repayment can be in two forms. You may choose to repay the principal amount invested in the business along with an interest component. Alternatively, you can allocate a share of the returns.
A round of angel investment can also help you start your entrepreneurial journey. Generally, family and friends typically contribute variable amounts of money towards funding the startup. Some are happy to risk a higher investment if they believe in the unique selling point of your business.
The goal is to plan your pitch and provide a detailed estimate of your expenditures that will help in getting the startup rolling. As long as they are convinced about the business plan and see your vision, they should be more than willing to ride along the journey with you.
Some of the best ideas for a business startup are capital intensive right from the very beginning. It is hard to bootstrap or get raise finance via crowdfunding or angel investors for these types of businesses. In such instances, you seek financing from venture capital firms.
You may approach one or more venture capitalists in order to find the right investor for your business. It is best to go for VC firms that may have invested in business ideas similar to yours. To outline your business potential, it is also important to touch upon key points such as forecasts of accelerating growth in terms of yearly revenue, the number of personnel, the scalability of business and more.
Once the VCs are able to assess the risk as opposed to the returns, they may choose to invest in the business in exchange for an ownership stake or equity. Do note that most VCs do not choose to fund startups that are still in the ideation stage.
Incubator programs are mushrooming all across the country to provide resources to innovative ideas for a business startup. Business incubators and business accelerators not only provide financial assistance but also relevant entrepreneurship training, mentorship, professional advice and guidance and network establishment which are critical support systems to jumpstart any business venture.
This form of business financing is ideally suited for startups that are in incubation or have moved slightly beyond the earliest stages of getting established.
In order to finance your startup idea, you can always approach a bank or an NBFC for business loans. Fullerton India offers a range of startup loans to new business ventures located in India. It is an accessible avenue for instant funds that can be used to meet a variety of business needs for your entrepreneurial venture.
Even though there is an interest component attached to the business loan, the benefits far outweigh the cons. You can apply for startup loans at Fullerton India for up to Rs. 50 lakhs with attractive interest rates ranging anywhere between 17% to 21%. With flexible repayment tenures between eligibility criteria for a business loan, you can repay back the loan in no time at all.
Fullerton India employs a transparent system of startup loan processing that requires no collateral from the business owner. Simply ensure that you meet the minimum eligibility criteria for a business loan prior to making your application.
Unless you have the cash to bootstrap your venture, every business needs finance to grow. These quick fundraising ideas can help you to get your entrepreneurial journey off the ground in no time at all.