For those of you who have never started a business before, it can sound like an intimidating task.Don’t get us wrong – We are not saying that getting your startup company up and running is an easy mission by any stretch.It will take hard work, dedication, money, some sleepless nights, and even some failure before you succee
I . A BUSINESS PLAN
A proper business plan gives you a significant advantage.So how do you make a business plan?In simple terms, a business plan is the written description of your company’s future.You outline what you want to do and how you’re planning to do it. Typically, these plans outline the first 3 to 5 years of your business strategy. The business plan needs to be the first thing on your list because you’ll use it to help you with some of the remaining steps.
II. Secure appropriate funding
You’ll need adequate capital to get yourself off the ground.There’s no magic number that applies to all businesses.The startup costs will obviously vary from industry to industry, so your company may require more or less funding depending on the situation.For a small, part-time startup with no equipment, employee salaries, or overhead to worry about, it may only cost you less than $10,000.Other ventures may cost millions. The cost of doing business is much higher than people initially think.Let’s circle back to our business plan for a minute.All business plans contain a financial plan. This plan usually includes:
- Balance sheet
- Sales forecast
- Profit and loss statement
- Cash-flow statement
III. How To Get Funding For Startups
You need to learn the best options to get funding for a startup. Not only that, you don’t . Following are some ways to acquire a funding
- Bank Loans
You can grow your small or large scale company with business loans from any trusted bank. These Business loans come with a host benefits and are tailormade to meet your unique business needs with competitive interest rates. See if you have what it takes to qualify to find the best lender for you. You will need to have a good Credit card history and credit score for the loan and there you are.
- Angel Investor
Get yourself financed by Angel investors who are often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. Angel investors can often provide valuable management advice and important contacts. Because there are no public exchanges listing their securities, private companies meet angel investors in several ways, including referrals from the investors’ trusted sources and other business contacts, at investor conferences and symposia, and at meetings organized by groups of angels where companies pitch directly to investor in face-to-face meetings.
- Venture-capital investors
It is a private equity which is a form of financing, provided by firms or funds to small to large scale business. Venture Capitalists take the risk of financing risky start-ups in the expectation that some of the firms they support will become successful. You can fund your business with the help of these Venture Capitalists if you have an attractive idea to impress them and urge them to trust you.
- Equity Share
It is a main source of finance for any company giving investors right to vote, share profits and claim on assets. In the world of financial and investment management, ‘equity share’ is a big word frequently used in every next discussion. We call it stock, ordinary share, or shares, all are one and the same.
There are different types of Equity shares that are classifies based on various things and those are Authorized share capital, Issued share capital, Subscribed share capital and Paid up capital.
- Join a startup incubator or accelerator
There is small difference between these terms as Incubators start-ups that are new and are at very early stage of their business whereas Accelerators accelerates the growth of an existing idea and business. So all you have to do is choose the right one for your business.