There is numerous small business financing options available. Being a small business owner comes with loads of ups and downs, there may be victories, losses, calm waters, setbacks, and whatnot. In the current scenario and from time immemorial, starting and running a small business can be a nightmare. In the first few years of business, small companies come across a lot of different challenges. Some are harder than others to overcome. Small business owners find it arduous to attract and keep top talent in nexus that can help them to grow. Since we all know that the small business owners are the future of our Nation, therefore, every possible step is taken by the government of India and our Organization to bring forth the talent on the global platform.
However, a leading cause for any business failure can be insufficient capital to start the new venture and the cash flow. 79% of the small business fails because of the too little money through which they start their business. Hence, the most crucial factor for running a successful business is “securing for it, the source of financing any business.”
“Finance is not simply about making money. It’s about accomplishing our deep goals and protecting the fruits of our labor. It’s about stewardship and, therefore, about achieving the good society.” – Robert J. Shiller
Any business onwer requires financing options for small businesses to meet payroll and day-to-day expenses, manufacture new products, execute marketing programs, and expand facilities to meet market demands. A small business can find it a tedious task to arrange for their finances. Adequate Finance and innovative ideas, when combined, can lead any business to take a pounce in terms of success. A significant part of the business is related to financial success. The ability to know what funds you have available, from what all sources you can avail the funds, smart business decisions can often determine the success of the business. Finance indeed is a very subtle factor that can break or make the entrepreneur. Financing in our eyes is the essential factor undoubtedly, but an element of utmost importance which we tend to ignore is the “small business financing options.”
For a young small business in India, like anywhere else on a global level, finance is vital for success and sustenance. Fundraising on a consistent and efficient basis is not the simplest of the tasks to accomplish. Still, it does not have to be the most difficult one, either. Banks tend to be the initial and most preferred source of raising funds or capital at a traditional level. However, they don’t necessarily have to be the only option.
The initial solid push is exceptionally crucial for a business to get to the revenue generation stage and a profit minting stage. That push originates from money. It might be for a brand new business commenced or a small business looking to soar high.
There is an availability of a plethora of financing options for small businesses. Despite that, one of the budding entrepreneurs’ toughest decisions is to evaluate various sources of income and raise the money needed to get going. You might consider yourself skilled enough, but convincing others of your idea can prove back-breaking. If an entrepreneur is unable to raise capital finances, he might never be able to turn his idea into reality. The crucial factors before raising capital finances include: how much to borrow? Where to borrow from? How to use the money borrowed?
Available prominent small business financing options for small businesses owners’ include:
For a new small business venture in India, like everywhere else all around the world, finance is the significant factor that may lead to success and sustenance. Consistent and efficient fundraising is not regarded as the easiest of jobs. Still it does not have to be one of the most difficult one either. Traditionally banks tend to be the initial and one of the most preferred sources of raising capital. Although, there have always been several options but banks earn the reputation and became people’s first priority.
The solid push at an initial level matters a lot in order to drive a business to get to the stage of profit-making and revenue generation stage. That push emerges from money. It might be for a brand new business starting or a small business looking to scale up.
There are numerous ways through which raising money is easily possible. Several other reliable options can be explored to raise finance for a small business in India. The options are given below-
Crowdfunding is already a great fundraising option along with one of the smartest small business financing options, albeit an equitable competitive gulf. As the popularity of crowdfunding is on the rise and it is easily accessible, crowdfunding is eventually turning out to be a preferred method most especially for startups in India. It is a major part of small business financing options in India.
Crowdfunding refers to getting individuals in order to invest or grant money for business purposes by accumulating it out on a crowdfunding stage. Of course, the idea has to have potential, and the investors should see some return on investment before they commit. Even so, this one is a fairly new age method, and those who know how to play it properly can get good support for their business or business idea. This link lists the top 15 crowdfunding websites/services in India.
At Aatmnirbhar Sena, we provide a framework for small business owners, which would lead them towards fulfilling their dreams of running a successful business. Under its Aatmnirbhar Bharat Scheme, the government has provided free collateral loans to MSME and certain other relaxations for stressed MSME’s. There are more than ten government business loan schemes in the form of the MUDRA scheme, Aatmnirbhar scheme, and MSME loan under 59 minutes, Stand up India scheme, etc.
Efficient small business financing options help keep the machinery of business operative and geared for the upcoming challenges.