Business Start up funding
- As mentioned above every one thinks about new business, but the funs is the most difficult thing to get.
- It is obvious that no one will invest in you if you are new in the market. To get funds from different financial institutions, you have to prepare a project report on your business.
- And for this you have to carry out the S.W.O.T analysis which describes the strength and weaknesses of the business and probable opportunities and threats.
- And the statistical data report of expected investment, production, sales, consumer groups, profits etc. is a must in such reports.
- Business firms undertake SWOT analysis to understand the external and internal environment. Through such an analysis, the Strengths and Weaknesses existing within an organization can be matched with the Opportunities and Threats operating in the environment so that an effective strategy can be formulated.
- An effective organizational strategy, therefore, is one that capitalizes on the opportunities through the use of strengthens and neutralizes the threats by minimizing the impact of weaknesses.
Things to show in ideal project report, and it should be easy and self explanatory.
- General Company Description
- Products and Services
- Marketing Plan
- Operational Plan
- Management and Organization..
- Personal Financial Statement
- Startup Expenses and Capitalization
- Financial Plan
- Refining the Plan
How to Get Small Business Startup Funding Easily and Qucikly?
Invest your money
- If your business is not too big, the best option is having your own money to put into your startup.
- You have the satisfaction of having saved it on your own, and the knowledge that you are not the debtor of anyone.
Establish a partnership firm
- A partnership can be of any type
- Profit sharing
- Equal capital investment
- Your work, partner’s money
- Ratio proportion
- More than two partners for having abundant funds, etc.
- A good partnership is also synergetic, bringing more success than running a business alone
Take a normal and short term internal loan
- This includes the money of relatives and friends as a loan to start the business.
- These loans are called normal and internal loans.
- Basically these loans are to be paid in short span of time. Normally the interest rates on these loans are not generalized.
Selling of the investments
- To start your own business, you can sell your other investments like shares, debentures, bonds, F.Ds, insurance savings etc.
- To fund your own business will be more advisable and motivating.
Grants and trust’s money
- Community trusts are normally very helpful to new aspirants who want to start their own business. These trusts give loans on very reasonable rate of interest and with good pay back terms.
- And government is also doing a lot to finance such new aspirants on the basis of reservation rules decided in law and category lists.
- Leasing is also a way to raise funds and save them, since equipment leasing reduces the initial startup costs over buying outright and makes some scope for further procedures.
- Many management institutions declare scholarships to bright students to come up with new plans and business organizations.
- Some examining committees and competitions also lend money to the aspirants who pass on some predefined criteria.
- This is a modern option to get funding in terms of barter deals. In this volatile business environment, every organization is dependent on some or the others for their different needs. And you have to find such firms which accepts your needs and in return you have to do something for that organization.
- College fests and advertising industries are growing on this basis and doing so well.
Advance funding from banks
- Some banks especially co-operative banks help a lot to small scale business. These banks provide advance funds for particular consignment and orders.
- And after the contract or order gets over, you have to pay money back with some reasonable interest.
- If your image and prestige is sound, the other party might not mind to pay in advance. For mid-level business, this kind of payments may be very useful and appropriate for both the organizations.
Shares and debentures
- If your money need is huge and big-level company is going to be emerged by you, the best option to go with is issue of I.P.O. Public finance is the most preferred by adventurous businessman.
- Equity shares, preference shares, debentures bonds, etc. are the ways to get public finance.
- The most suitable finance for the emerging companies and beginners is BANK LOANS AND LOANS FROM CAPITALISTS.
- For acquiring loan, the project report mentioned above is very important and. On the basis of these projects, loans are sanctioned.