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• 94% of new businesses fail during first year of operation due to Lack of
Funding
• Money is the bloodline of any business
• Funding depends largely on the nature and type of the business
1. Bootstrapping your startup business
Situation in which an entrepreneur starts a company with little capital.
Individual is said to be bootstrapping when he or she attempts to found and build a
company from personal finances
Easy to raise due to less formalities/compliances, plus less costs of raising
An effective way of startup financing, specially when you are just starting your
business
It’s like taking a loan, pre-order, contribution or investments from more than one
person at the same time
create an online profile and explain your project and fund-raising goals and share
the same with public at large
Some of the popular crowdfunding sites in India are Indiegogo, Wishberry, Ketto,
Fundlined and Catapooolt
A high net worth individual who provides financing to a start-up, either in
exchange for convertible debt or equity
Also contributes their advice and business experience
They prefer to take more risks in investment for higher returns
Angel investors have helped to start up many prominent companies, including
Google, Yahoo and Alibaba
Banks is the first place that entrepreneurs go when thinking about funding
Involve the usual process of sharing the business plan and the valuation details,
along with the project report
Leading Indian banks – Bank Of Baroda, HDFC, ICICI and Axis banks have more
than 7-8 different options to offer collateral free business loans
Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA
Yojana) is targeted at Rs 3 lakh crore in budget 2018-19
SIDBI – Small Industries Development Bank Of India also offer business loans to
MSME sector
Different states have come up different programs to encourage small businesses.
Eg- Maharashtra Centre for Entrepreneurship Development, Rajasthan Startup
Fest, etc
First Year Budget Cost
Salaries 510,000
Repairs & maintenance 8,400
Local Advertising 5,000
Marketing 51,400
Accounting and legal 5,000
Rent 17,798
Internet & Telephone 5,940
Equipment 48,000
Total $651,548