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Topic : Self Financing for your Startup....
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Customer Relationship Management

 
Started by : Jagdish Prabhu, Business Analyst, Computer Associate   10 08 2010 12:49:27 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : Getting Started(Entrepreneurship)
Activity:  79 views;  last activity : 03 02 2011 09:39:43 +0000

India is on a entrepreneurship drive at the moment, but many fail to raise money when they are going for a startup, the boot strapping fund which one needs in beginning is the hard to get, and people will be in dilemma like whether to raise  money on their own or by going for a VC funding, and getting a  VC funding is not that easy in the first place, and raising money on their own also is not an easy task. So, how can one raise money for a starup on their own?? share your thoughts on this..

 
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1 2 3 4 5
1 Mixed source
2 Secure a loan from friends or family
3 Go and pitch your ideas to Angel investors
4 industrial loan or bank loan
5 Find Private Investor
6 Considering a home-equity loan or second mortgage...
7 venture capital finance is not wide spread
8 Report
9 Opening OD Account with bank against collateral.
10 Venture Capital
11 question
12 Start ups
13 OPEN CD ACCOUNT IN BANK STRAT WITH A SMALL WORK AND GAIN THE CREDIT IN MARKET.
14 You can apply for a loan from bank
15 personal, friends ,family and incubator investment
16 deposite the few money in bank for future,loan etc
17 look for a secured loan

Mixed source

idea posted by KALIYAMOORTHY Oil & Gas Area Coordinator, Undisclosed

How a film maker look for Financier the same way, money is to be collected.

  • Watch Govt schemes(Ministry of Industry) on your project - May be there a subsidized Loan
  • Consult SIDCO - Small industries development directorate.
  • Deal with Bankers - Some may come forward to finance you conditionally.
  • Gather money from  Friends/ relatives on agreement with pay of returns.
  • Mortgaging bank also can help in financing.
  • Consult a book- how to start your industry. May be there some source
  • Take a Financial Consultant Help in this field.

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Kaliyamoorthy is right a mixed source is a better option  as family & friends might be some help as taking the whole amount from bank might be stressful.

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i like this idea it should depend on the requirement of fund then choose the source from above said points

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Secure a loan from friends or family

idea posted by Jagdish Prabhu Business Analyst, Computer Associate

Getting a loan from friends or family is not as easy as picking up the phone and asking. Will Uncle Kumar want a share of the business, or substantial collateral if he loans you money? And Do you feel comfortable saying no if he asks? Do you plan to pay back the money in a defined period of time? In seeking or securing a loan from family or friends, set a limit on the time you will take to repay them, and be clear about what they are or are not getting in terms of equity and collateral.

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To raise money for a startup on your own, the main recourse will be to depend on one's own available money and relatives and work out the schedule by when you will be able to return the money and interest rates, as applicable and other factors.

If the idea is good and fully implementable, there are many venture capital funds willing to invest, but it requires a lot of work before the money will be invested by the VC funds.

Thanks for the referral, Jagdish...

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THIS IS THE BEST OPTION AVAILABLE TO RAISE YOUR FUND FOR A STARTUP CO.

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by Rathin Deb, Freelance Retail Consultant  | 10 09 2010 19:19:41 +0000

Yes jagadish I agree with you since it is not easy to secure loan from friends or relatives hence once taken the repayment will automatically will be done in time since the person who has taken loan knows that returns will be sufficient to repay the loans and by doing so it opens the door of all other friends and relatives who they will be eagerly awaiting when their turn will come to offer loan.

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Go and pitch your ideas to Angel investors

idea posted by Ronni Marker CEO/MD/Director, Avian Group Pte Ltd

There are more and more investors who is interested in start-ups. Even in times like this.

Therefore if you believe in your idea and can set up a realistic goal and business plan, then try to pitch your idea to Angel investors. They are often middle to high income private people who is looking to invest 50.000 USD or (much) more in a realistic project.

The good thing with Angel investors is that they are often interested to invest in projects where they have an special knowledge in, and therefore can act as adviser in one or more start-ups.This would give you an added advantage in competition with other start-ups.

Angel investors can quite often be found in the expat community of where you live.

I have seen a lot of projects been presented to me, and first of all be realistic in your approach. Investors do know that 3 goats does not make a farm. So be realistic in your plans, and especially in how the growth market is and how you are going to expand and secure your immediate sales, to cover your operation expenses while your mature your product or service.

Good luck!

 

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by B.H.Agarwal , Freelancer, Technology Consulting  | 10 09 2010 03:32:59 +0000

Once the Project is Sound & Attractive. Funds usually line up.

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by Davies francis, Analyst, self  | 10 08 2010 15:06:27 +0000

to my opinion an angel investor can plug more ideas and can improve in growth and also help in sufficent fund as mr ronny sir told .

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industrial loan or bank loan

idea posted by Ranganathan D Footwear Designer, private limited shoe factory
can aproach the district industrial center and get the benifit of PMEGP ( PRIME MINISTER's EMPLOYMENT GENERATION PROGRAMME) Or also a banl loan
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This is a good idea and easier also at a minimum intrest rate you can start up.

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Find Private Investor

idea posted by Nilesh Pawar Legal & Secretarial, Valencia Professional & Management Services LLP
There are many people with lots of money looking for venture to invest it. If you can find one of them and convince them then your problem will be solved.
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Always be ready with your business idea, project report and terms and conditions you want to put forth to investors. Be flexible with your terms to suit the investor.

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Considering a home-equity loan or second mortgage...

idea posted by Anamika Roy Freelancer, IT Services

You can self-finance by taking out a home-equity loan or second mortgage, but don't consider this strategy unless you have substantially more than 20 percent equity in your home. If you have any less, you may end up placing all your equity into your business, with little or none in your home. If the business fails, you could lose the house as well as the company.

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by Rathin Deb, Freelance Retail Consultant  | 10 09 2010 19:25:47 +0000

Anamika I am in agrement with your point of view also.

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venture capital finance is not wide spread

idea posted by kanukurthy sudershanrao Operations Manager, Andhra Bank

Venture capital finance idea is not as wide spread in India as it is in US and European countries.

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idea posted by sudhakar BUSINESS CONSULTANT

feasibility report should b rooted thru concerned ministry for them to understand and make them to initiate necessary action for financial support. By doing this private public participation can b made which in turn will ensure the foremost thing market stability.consumer confidence will automatically grow. Instead of running to institution for any financial assistance this method can b taken seriously in future. Indian economy is mixed in nature. And a healthy sign for a developing nation.

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Opening OD Account with bank against collateral.

idea posted by Mohammad Bakhsh Project Leader/Managing Consultant, Freelancer

It depends upon your requirement of funds.You can approach banks for opening O D Account  against your collateral. i think this the best option if market capitalization is not possible.

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Venture Capital

idea posted by Himadri Dave MBA/PGDM student, DR.VSICS
Budding entrepreneurs can present a feasible business plan and approach any of the venture capital firm as they are specifically for this purpose
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question

idea posted by VICKY PALIWALA Branch Manager, AAA TELESHOPING PVT. LTD

can any one tell me how i can contact the Anget Investors ???????????

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Start ups

idea posted by dommaraju krishnamaraju CEO/MD/Director, wine legendIndia pvt ltd

 There are many private and Public participatory institutions which are working solely to develop new entrepreneurs and help them in every way to become successful.

There are two with whom I am working and these are BYST ( CII MADRAS) and Venture East . Both are in Chennai. You can get in touch with them.

 

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OPEN CD ACCOUNT IN BANK STRAT WITH A SMALL WORK AND GAIN THE CREDIT IN MARKET.

idea posted by rakeshbhatnagar GM Projects., wig brothers india pvt.ltd.

Open a CD account having suitable limt,  itcan be opened against your immovables and some deposits.Except this you can start with a small project and gain credit in market , it may help you better than your limit this may be increased as your work / projects size increases.   

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You can apply for a loan from bank

idea posted by Chandra shekhar Technical Writer/Quality Assurance, CMMI 3 Software Company, Hyderabad
Loans are available with banks, if you have full proof business plan ready.
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personal, friends ,family and incubator investment

idea posted by ashesh anand Consultant, THE MASTER'S
this is depend upon the concept of business plan and skill of entpr. how much the business plan viable and innovative, when and whrer to start and what amount of capital require upto first stage of finance.
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I agree to your idea but in my view the members from whom you are seeking investment must be of your confidence.may be friend , relative  or family member.

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deposite the few money in bank for future,loan etc

idea posted by priya recuriting and counselling, professional training consultancy

started  up the money saving from earning its it helpful for future

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look for a secured loan

idea posted by Kiran Sethumadhavan Partner, Sunrise Associates
when somebody plans to start his own venture, the first and foremost is start up funds.. while the entreprenuer would have his own funds to start, raising money for the venture is a uphill task but a very vital task which have to be planned. today many banks/FI's provide secured loans for such start ups.. one way to look at raising funds is by approaching such institutions for funds.
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