Five ways to get your start-up funded

1. Five ways to get your start-up funded Most businesses face the issue of a lack of funding from external sources. If a start-up has a good idea that can disrupt the market's strategies, the value of that idea is zero without proper and well-defined funding in the project. Capital requirement is one of the prime factors that determine the future of a business. Some of the ways to get funding are start-up loans for new business, business loans, loans against property, etc. When should a start-up look for funding? It is believed that start-ups should look for funding variants as late as possible because it gives them an opportunity to check the business's built and the endurance to survive without any external support. As per experts, a start-up shall self-finance the first two funding stages, i.e., founder-market fit and problem-value fit. Five methods of getting the start-up funded 1.Self-funding: Starting the business through self-funding is one of the bravest steps taken by entrepreneurs. It is generally opted by start-ups with a sufficient amount of savings to take risks in the market. Self-funding is the best option for young businessmen to start their business as it does not involve any form of debt consideration or any other liability on the head. Moreover, they can

2. raise funds from VC (Venture Capitalists) or potential investors at later stages if the business sounds promising at its birth. 2.Taking a Business Loan: A business loan is a specific loan made for business purposes like expanding business, infrastructural investment, purchase of machinery, maintaining inventory, hiring departmental staff, etc. Business loans can be of various types like bank loans, business cash advances, mezzanine financing, invoice financing, asset-based financing, microloans, and cash flow loans. Since capital funding is a vital component for meeting a business's financial requirements, it forms an essential element in determining the long-term success of a business. 3.Angel Funding: An angel investor has an astonishing net worth that offers financial support to start-ups and guides it in growing further. They even take mentoring sessions and provides a roadmap for the future growth of the start-up. 4.Crowd Funding: Sharing a business idea in front of a crowd to pitch for funds is becoming a recent trend in the current era of start-ups. Crowd funding is considered a good option as other start-ups present in the conference get to know about your start-up, and the acknowledgment results in getting funding from the potential investors. 5.Personal Loans: Though personal loans are an easy option to raise funds, it is not much recommended to use this method as it involves debt consideration that may create problems for the start-up in the future. Getting a good source of funding for a small business start-up is a stage that decides the future of a start-up. A start-up shall carefully choose its source of funds keeping in mind the returns on the project and debt consideration.