In today’s world, self-startup businesses are in trend. Nowadays everyone wants to get established on their own strength, everyone wants to have their own brand, their own company. So, here are some tips which will help in fundraising for your startup.
But, before we start with the actual topic, here are some questions which would have come to your mind like How to start your own company/enterprise? Why do we need funds? Does every startup need fundraising? Etc.
How to start your own company/enterprise?
To start any type of business first you need to know what exactly you are aiming for; that means you need to know that what type of product you are going to sell. E.g.: if you want to open a cake shop your main product will be cakes.
After deciding the product you need to get into a serious research as to what is the demand of your product in the market? How many competitors do you have in your own area? What is the market price of your product? How much profit you will be getting? What is the selling price of your product? Etc.
Finding place for selling your product, doing legal works, getting employees for your job (if needed) etc. will be the needed for startup.
But, most importantly money required for your project will the key aspect. Though, there are some startups which don’t require money but some of them need a quiet a huge amount.
Why do we need fund?
Many times, entrepreneurs find it necessary to invest very less money in starting their business. Even though, there are various ways to start a no cost business but, a person do have to invest little money for business license, place for startup, advertisement (this depends on the entrepreneurs) etc.
Does every startup need fundraising?
As told earlier, not every startup needs funds. There are some businesses like consulting, content developer, copywriter etc. which don’t need funds but there are many of the businesses where fundraising important like if you need to come up with own jeans brand you need some funds for patenting your brand name, advertising your brand etc.
So, now as you are aware of the startups, we will move to the main topic.
Fundraising tips for startups
- Consider “NO FUNDRAISING” before fundraising:
Not considering some of the specialized industries like medical, pharmacy etc. there are many industries which can be established at less cost. Avoiding raising money will not only make sense at the start of your startup but also in the near future. For instance,taking Rs.10 from the investors and returning Rs.100+ will create pressure which will not be good for your startup and market when compared to bootstrap.
- If fundraising is important, make sure you raise it as little as possible
You need to calculate and assume that how much fund you really need. Taking huge money and returning it later will make no sense.
- Before finding investors find advisors
When you set up your mind for fundraising you tend to focus only on that and this might curb you to find the other paths. Sometimes, we might get an indirect path which will help you fetch cash (this doesn’t mean in any illegal way but, for instance, there might be alternative idea which will help you curb your expense and will in turn need less fund than earlier). Seeking advice from those people who have already been in the industry you are going to step will be helpful for you.
- Consider the fundraising point again and again
Before, making up the mind that you need fundraising make sure you check everything again and again. It might happen that in hurry you might have missed an idea which would lower you expense. It even might happen you might not be ready for startup, in such case, fundraising will be the biggest mistake.
Fundraising is surely not a cake walk but it can be a game-changing moment for your startup provided you are ready for it.