Business Startup Classroom: You must have also seen many people thinking and talking about starting a startup around you, but most of the stories stop at the point that I wish I had some funds to start it, or someone who is interested in my idea. Would have put money Yes, many ideas are not able to start simply because they do not get funding, or start but cannot move forward, so let’s understand the funding fund as well as about the stages of a startup. We also understand that how the funding is done at which stage. It is very important to understand one thing here that anyone invests money in business only for profit, so you have to take care from the beginning that how your investor will get profit.
This is the earliest stage, that is, here the founder has just an idea and you make your prototype to get that idea on the ground, this is a stage where people often do not want to invest money, because the business You don’t have anything special to prove. At this stage, according to your startup, more or less funds may be required, but here the easiest way to collect funds is bootstrap, that is, it is better that you take money from yourself, your family or friends to start your idea. Get down on the ground. When we started SkillingYou, 3 friends together invested money.
In this stage, you have made a prototype of your idea, and it is time to check its market fitment, at this stage you need maximum customer feedback for your product, so that necessary improvements are made in it. Can go and make it better for the customer so that you can sell it. At this stage, you can take help of crowd funding or angel investors, there are many angel investors groups who invest money at this stage by taking equity in the business, also you can try incubator, where along with funds you will get mentoring Office support, launching support can be easily found, many government and non-government organizations are running incubators to support startups these days.
At this stage, when your product is tested, your startup starts making some revenue, then you need money for further improvement and promotion in the product, team, experts in the market. But here for money, along with your product, your profit margin, market size, expected revenue, planning are considered as major basis. Here you can take support of Institutional Funding, Capital Funds, Bank Loan, Government Schemes. Here you get funds in the form of equity or debt in your company.
expansion or scaling
This is the stage where you need more funds for marketing, team, leadership, innovation to increase your business in the market. After Series A, there is funding in further series, B, C, D. That is, as your business grows, venture capitalists keep investing money in your business, yes, the same thing applies here as it was in the beginning, business Money comes from profits, so if you can show profits then you will not have shortage of investors.
Let us tell you here that the government has launched many schemes under Startup India, where you get funds, incubator, mentoring support from idea to seed stage and beyond. Startup India Seed Fund Scheme (SISFS) is a scheme that supports startups for market entry, product testing, prototyping. Do not forget to register your startup in Startup India, from where you will come to know about many grants and schemes, competitions.