There is nothing to beat generating your own revenue to fund your business. But there are other options that could cover your fund requirements. Some are listed below.
Self-Funding: This option is usually done at the initial stage of the start-up, when an entrepreneur invests money from his own pocket or generates funds from reliable sources, like family and friends.
Crowdfunding: It is a professional platform which pools the resources by a group of people, for a common goal. There are different types of crowdfunding out of which three primary types are Donation-based crowdfunding, Rewards-based crowdfunding and Equity-based crowdfunding. Some of the crowdfunding sites in India include BitGiving, Milaap, Ketto and Wishberry.
Angel Investors: This source of financial support usually is considered during the early stage of a start-up. Angel investors invest mainly in high potential start-ups. They are high net-worth individuals (HNIs) who invest anywhere between $50,000 and $5 million. Some angel investors in India include YourNest, Hyderabad Angels and SiliconIndia.
Venture Capital: This source becomes important when you have a ready product and are at a growing stage, requiring heavy funding. Venture capital investments can be from $500,000 up to $100 million. Venture capital firms include Helion Venture Partners, Accel Partners, Sequoia Capital India and SAIF Partners.
Bank Loans: This source comes into picture when the start-up is generating reliable profits. Taking this route can be quite risky and also a less explored path. Various venture capitalist funds such as SBICAP and CVCFL have been introduced by public banks to facilitate funding.
An ideal founder is typically a high achiever, who is aware of purpose, mission, and vision. He is also passionate about his beliefs and vision. An ideal founder is someone who has identified a consumer need and who can fulfil this need, in the long run. He should have certain convictions which would help him attract the desired capital and team.
Consequently, these basic characteristics of a founder would play a vital role in the success of his startup company.
Further, if you are aiming to become an ideal founder, you must understand yourself, your likes, dislikes, your strengths, weaknesses, and your passion. You need to determine whether you can build a business around something that you are passionate about, and create a key role for yourself in that business. This passion for your business would help you in identifying your customers, team members and the potential investors.
So, you need to ensure that you build a business you are passionate, and excited about. You need to rethink about the business and the strategies that you build around the business, if you are not passionate or excited.