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7 smart ways to fund your start-up

Nitin Mukadam, CEO at N M Consulting suggests seven smart ways to finance your business. Read on

For a bright idea to see the light of day, funds are most important.

But before you approach the VCs and professionals for funding, here are some methods by which you can get off to a start.

1. Savings and Assets

Check your assets and see what you can monetise.

Sell, mortgage, or leverage.

If you have a piece of ancestral land languishing somewhere, put it to better use.

Or if you have silverware that is gathering dust, it's time to make it shine. Have the courage to believe in your idea and yourself.

Illustration: Uttam Ghosh

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2. Consulting / Moonlighting

If you have high value skills, earn and invest.

Consider offering your services as a consultant to earn those extra funds, which can then be ploughed back into your business.

Ideally, work with people who will play an important role in your business.

That way, you not just offer your services, but forge stronger relations with them.

Illustration: Uttam Ghosh

3. Friends and colleagues

Do not hesitate to ask your friends and colleagues.

There is no shame in asking for help.

They are likely to be the most supportive, because they are the people who know and trust you.

They will support a true dream if you can share the passion and the conviction.

Illustration: Uttam Ghosh

4. Community

There are many communities in our country, that get together to celebrate religious functions and weddings.

But a community can be more useful than this. Businesses help build communities -- and your community leaders know that.

Many communities will happily fund you if they think you deserve it.

Approach your community leader and he will find a way to help.

Dawoodi Bohras and Kutchi Bhatias are two examples of communities that help start-ups.

Illustration: Uttam Ghosh

5. Business associates

They have to be approached very skillfully.

Suppliers, vendors, and services providers who understand and appreciate your business ideas will chip in if approached tactfully -- in cash or in kind.

If they understand the value of your business idea and like you as a person, they will give you the money.

Illustration: Dominic Xavier

6. Professional channels

As a new businessman, you may not be sure whom to approach for funds and how to approach them.

Try the professionals.

Bankers, lawyers, management consultants, brokers, architects, engineers and sundry gurus -- if they like your business idea, they will take you to the money.

These professionals have a wide circle of contacts and will know more people than you do and can surely be of help.

Illustration: Dominic Xavier

7. Customers

If you are clear in your mind about your TG and know the customers for your product/service, go and talk to them.

Customers who have faith in you will give advances and even invest -- once they are convinced of the value that your business delivers.

After you have tried all these methods and you still don't get funds, don't be disheartened.

Await a proper opportunity, re-think the business plan, re-think the scale and scope,

Re-think location, priorities and find others like you to join hands with.

Talk to everyone who will listen and keep the faith that one day someone will buy your idea.

Never, ever give up -- keep trying!

Illustration: Uttam Ghosh