Dropping your long lived dream or business idea just because you don’t have financial backing is really painful. You will never like to be in such a situation but at the same time the chances of encountering such situation are very high if you are a Wantrepreneur.
Finding an investor for your startup is not an easy job as nobody can predict the future of your startup from the business plan you draw. Your work would speak for you but fund raising will start before that!
Potential investors will not take an immediate action or accept what they read in black and white as they have to risk their money for something that has 50-50 chances in this competitive market.
“Investors are pinched between two kinds of fear: 1. Fear of investing in startups that fizzle, and 2. Fear of missing out on startups that take off.” – Paul Graham Founder, Y Combinator
Sad to say, but yes fund raising is the biggest setback for startups. Though government has changed the policies and have extended full support to the startups under their new Startup India project, there would be many still left out with full-proof idea and empty pockets. Here are some creative ideas to raise funds without dropping your dream midway.
- Bank Loan
If the government policy intended just to fuel funds in startup didn’t help then the chances of getting bank loan are also low. Even if you can manage the funds from the bank then the next concern would be to pay the installments with limited cash flow. Being a startup, you may still need time to settle your expenses and earnings. There would be many tasks awaiting a funding and in that case you would surely find it difficult to pay back your loan as monthly installments. So, drop the idea of bank loan and go for it only if nothing else works.
Yes, this would be a great idea if you are ready to share some rewards later. Donation based crowdfunding is also possible but you will have to network a lot for that. Use your website, social media connections and whatever other way you feel fit for this type of funding. Reward based or equity based crowdfunding projects will soon get acceptance.
- Look out for help from friends and family
This is same as crowdfunding but here you will be using the limited set of contacts. They would understand your idea faster and the trust factor will also work. Sometimes you may not get enough funds but they may help you on other fronts.
- Competitions for startups
You won’t find many but check out for the startup business competitions taking place. Prepare your idea and business plan. Present it well and wait for getting selected. If it happens then funds would be your reward money.
Your dream to start your business is priceless, never leave it midway due to lack of resources as everything else can be managed but it is difficult to get back the fire to perform.