6 Ways to Generate Funds To Start a Business Arushi Jain, Project Head, StayHappi Pharmacy explains three ways how entrepreneurs can raise funds for their business. Read on...

By Franchise India Staff

This story originally appeared on Franchise India

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Starting a business is more than just a lucrative idea, dedication, and hard work but channelizing cash inflow to make ends meet.

It is not necessary that only rich people are entitled to start a business but ones who do not have enough investment of their own can also start their own business if they learn how to gather funds and attract investors who believe in their ideas and are ready to invest in it.

Arushi Jain, Project Head, StayHappi Pharmacy explains three ways how entrepreneurs can raise funds for their business:

  • Start with an alternative business of your own:
  • They can start something online wherein the webs where once the backend is set up they will start getting something.
  • Invest in funds.

Other than these three ideas, here are some ideas, using which an entrepreneur can generate funds to run his/her business smoothly:

  • Ask Friends and Relatives:

If after unloading all your savings and treasures in your business, it is time to move to the next step, which is to ask your friends and relatives for investing in your project.

Running out of savings while setting up your first project is obvious because the estimates might fall out of line, it is time to look out for those who showed belief and positivity towards your move.

  • Apply for Bank Loans:

If you have already asked your friends and relatives for funds and they either refuse to give or even after utilizing their share of investment, you are still short of the fund then there are a lot of banks, who provide loans with a certain rate of interest. Visit the banks, which charge less interest and apply for a loan. Make sure that the bank is authentic.

  • Look for Angel Investors:

There are a lot of big brands, who invest in startups and entrepreneurs only when they get impressed by the idea or if they can get a tiny piece of cake from your plate.

The business world is very complicated, sometimes you have to play weak and smart, whereas at times you have to play strong and stupid.

If a big brand is willing to invest in your idea, try to keep things as transparent as it can be, or else you will most likely block your own growth. It is important to win the confidence of the angel investor. Give a piece of your profit with certain interest amount and try to unfold your cards slowly to keep your angel investors interest in your business.

The article was originally published on Franchise India by Nibedita Mohanta.

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