Funding Startup

How to Raise Funds for Business in India

So you are tight on budgets. Want to start your own business. You want to know what are the different ways of arranging finance for your first startup. So stick to the post till the end, I will try to cover many tested options.

So you are tight on budgets. Want to start your own business. You want to know what are the different ways of arranging finance for your first startup. So stick to the post till the end, I will try to cover many tested options. And I keep adding related blogs post so don’t forget to check out my other post. And Do not worry I write simple, I don’t make it over-complicated with jargons.

Before giving you the direct answer, I ask you a question?

Why would someone give you money?

Yes, Tell me What you are giving in return. Even if you take money from your father, you give him something that is hope. I don’t want to be filmy like you will just ask your father for money and the next day it is in your hand. Though that could be the case sometimes. 5 fingers never the same.

I am not here to give you dreams like bank scheme, an angel investor will give you lots of funds. So hold your chair and let’s start your journey. 

How people mostly start their business in India? 

Predicting your future Journey 

  1. You yourself will invest first

    Time is money. You need to invest your time in research and plan for saving. Do not spend too much time on research. Try if you can start with funds in your hands yes your small savings. Calculate how much working capital you required. If you having enough, start it. If things work, grow it. If did not work, try to manage in fewer funds. And keep learning the art of making sustainable business growth.

  2. Arrange Credit Cards & maintain good CIBIL Score 

    If you are an employee and you planning to have a business, then start learning how to manage finance. Managing Credit cards is an art, that can really help you grow without taking money from anyone.

  3. Family members will help

    You may have asked them first but in starting they may deny but later they see you are trying. So first they will give you small funds. if you perform well they will your give you more funds. Try to repay a small amount as well so they see you are not exploiting them and growing in the right direction. Yes, don’t forget you were giving them hope.

  4. Ask Friends, they help in urgent funds requirements

    Friends are complicated, they are not like family but sometimes they are more than a family. So, Ask when you stuck. Try to create a win-win situation. And help them when they needed. I find out, You cannot ask your family members for urgent funds requirements. But friends can help with a small amount. Believe me sometimes small amount matters.

  5. Local Committees

    I am a strong believer, In India, Bank cannot help you start your business as you expect they should. So control your emotions and find where emotions work. Yes, Local committees are maintained by your family member. Family members don’t invest but they can allow you to use their extended credit. Strange they could have credit card very easily but they don’t take. The reason is simple, fear of credit card dues, interest & EMIs. 

  6. Take Advance Payments

    You may be thinking, who will give me advance payment. But this is not true. If you want something you need to create a base for it. You create the base people will give you advance payment. 

  7. Pay on Time

    Strange when I said take advance payment you were thinking now I will talk about late payments. No, rather I will suggest you pay on time to everyone and most importantly to your employees. This will help you later.

  8. Extract funds from Business 

    You heard about working capital. It means money which is used in your day-to-day business operations. Sometimes you need to arrange that much only. Anything extra will raise your cost. Yes, the extra amount will result in an unnecessary investment. Besides that, the cost of finance is already there.

There are more than 100 True Other Logical working ways of arranging funds for business in India like collaboration & sales based tie-up

Stay connected I will be adding more ways to have finance for your business in my other blog post. As of now, you start with the above. Sometimes More you read, less you do. Remember Time is money, you are losing it right now.

Some honorable mentions that do not work for most of the startups in India. But I did not mean they will not work for you. Being said that as you grow further these will help you the most.


Venture Capitalists

Angel Investor

Gold Loan

Micro finance / NBFCs

Government Scheme / MUDRA

Beside this, many companies looking for your problem as opportunities and creating related solutions like Kickstarter, iFundWomen, Fundable, Patreon, Indiegogo etc. You can also comment on what is helping you in arranging funds for your business. It may possible it will help others.

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