How to raise capital for your startup

Every business idea requires brilliant execution and in order to ensure the perfect execution, there are a number of things that every entrepreneur must accomplish. Apart from employees, material and machines, every business idea requires capital i.e. right amount of funding for its proper initiation and execution. There is simply no stopping young and talented people out there with brilliant business ideas but one thing that slows them down is accumulating the seed money that is detrimental for starting any business project.

No matter if you are planning to set up a large undertaking or thinking of setting up a small venture, raising the initial funds to start up your project is definitely going to be a challenging task. There are a number of ways through which a potential entrepreneur can raise funds for his business, a few of the most workable and reliable ways are listed below:

  • Self generated funds

What could be a better way of using your hard earned saved money than by putting it into the business of your dreams? Certainly, there won’t be any. So, the most primitive and usable way of raising funds for starting up a business is by using one’s self generated funds. Get a hold over the funds from your saving bank account’s pass book and zero interest rate credit cards and put this amount into your vision.

  • Business loans

One of the most common ways of raising funds for a business avenue is by knocking the bank’s door for short/long term business loans. Raising loan is always a good idea for any large undertaking as it has plenty of collateral and security to offer as guarantee unlike a potential entrepreneur planning to set up a small business. Banks do offer specialized loans to small business enterprises provided they fulfill their criteria of approvals and guarantee.

  • Venture Capitalists

If you have the vision and passion to startup a business undertaking that would not just prove to be highly profitable but would also turn out to be path breaking for the industry then, you can surely take the help from Venture Capitalists for raising the seed money for your business. Apart from providing huge funding options, VC’s help you manage, market and take your business to unprecedented heights. The only downside of this form of funding is that, the entrepreneur usually has to part away with large chunks of financial returns for the investment and support he gets from VC.

  • Angel investing

This kind of investing is definitely new on the block and has helped few of the most successful businesses today. Facebook and Twitter have successfully managed to garner investment for their business from this very avenue. Entrepreneurs who have generated huge profits are always on a lookout to invest their profits into reliable business opportunities and these types of investors choose potential businesses in dearth of money to invest their money by acting as their angel investors. Angel investing comes as a boon for individuals desirous of raising funds for setting up their business without external interference and conditions as in the case of Venture Capitalists and Banks.

About Calvin Raab (21 Articles)
Hello, My name is Calvin Raab. I am the CEO and Founder of Raab Journal. I am 17 years old and I love learning more about the the world of business. Any questions or concerns please contact me at calvin@raabjournal.com Thank you and enjoy!

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