You have the next big idea in your field of interest and are ready to put things into action, but you need capital to get the wheels rolling. If you have a feasible idea and a good plan to go with it, there are plenty of ways through which you can raise the funds you need.
Traditional institutions like banks and NBFCs offer loans to businesses but have strict policies along with high interest rate. The requirements of a balance sheet itself becomes the main reason of non starter. Also the margin requirement may put the entrepreneur in a fix. As such the challenge of bringing in money becomes bigger issue than bringing in customer. Most business men would like to focus on establishing the customer base and business linkages rather than spending time running pillar to post with banks.
Another way for raising funds, especially for start ups, is to secure venture capitalist or VC funding. VC funding basically means impressing an investor with your idea to convince him to give you a line of credit. Venture capital can help you get the necessary funds to have a successful business. Such investors are always on the lookout for good investing opportunities and you have a good chance of attracting them if your business plan is solid. VCs invest into ideas that they believe will generate some amount of profit against the amount invested.
Typically, a VC investor will be a part of your business and a deal can be made to share profits or be business partners. Their could be a condition of threshold interest rate after which the profit sharing will work. The agreement may also contains some clauses on repayment schedule and his share after complete repayment.
To convince such a person into your business, it is very important that your business model is well planned and backed up by a solid team that is dedicated towards the business. Then you need to find a VC that has an interest in your line of work or industry of your operation. Be fully prepared to deliver him with an impressive and sound presentation about your plan of action and how it benefits the investor. Also, is it always better to partner with a wealthy guy since he may also bring in some good relationships also.
So what are you waiting for, give wings to your idea and fly for success.
