How To Start A Business With No Money.

How To Start A Business With No Money.
No Money to Start Business ? No Problem. Try These 10 Options to Fund Your Business.


What is a boot strap? Boot strap means to invest a little money, save, then apply and save, while another way is to raise money from the market. Giant companies like Flipkart, Oyo, Ola, Uber, Jomato, Swiggy have done the same. However, not all can achieve this point. But here it is important to remember that success is not always achieved overnight. Oyo Chief Executive Ritesh Agarwal took five years to reach here. Lionel Messi, one of the best football players in the world, also admitted that he had to go a long way to reach this point of 17 years. Through this article, we are telling 10 formula to increase small capital and expand the business from that.

1. The World's Best Customer Is Investor.

If your business has some special solution, which solves the burning problem, which has fulfilled the need of the customer which no one else can fulfill, then no one can stop your capital from growing. Even you will get advance and people will be ready to work together. This is where the advance will work as an investment for you and you will not have to give any share of the company to anyone.

2. Self Fund & Personal Saving.

If you invest money, then another will also invest there. It is not that you are not investing your money and expect from the investor. The investor also sees who has invested how much money. If you invest money in your business then the investor also invests money in your business. By the way, the biggest benefit of putting your own money is that you are giving positive messages to the investor. He becomes positive towards you. While adopting the boot strap, D-Mart, MDH, Microsoft and Facebook also started working with their own capital initially, after growing, started raising money from the market.

3. Peer to Peer lending Friends and Family.

This method is becoming very popular nowadays. Because in Friends and Family you do not have to pay any interest nor do you need to share the company. The best way is that if you want more money and no one is able to give more money, then in such a situation, take a little money from friends and family. By doing this, you will not have to pay interest, neither shareholding nor documentation will be a hassle. You get instant money.

4. Crowd Funding.

This is called finance from public. Filmmaker Shyam Benegal made the film Manthan in 1976 by collecting Rs 10 lakh from 5 lakh farmers of Gujarat. The biggest advantage in crowd funding is that due to less money the lender will not bother you, one of the advantages is that your marketing is done for free. Because the person who gave two rupees told 10 people that he has given money, it is a good company. Marketing starts on its own. There are also websites of crowd funding such as Wishberry, Indigo Go, Fuel a Dream, Fundable, Keto, Milap etc. Crowd funding is now starting in India. The advantage of equity base crowd funding is because you do not have to bother to control everyone in your company and the fund is also mixed.

5. Angel Investment.

In the beginning of business you get some capital. Angel Investment also lends Debt, sometimes it gives Equity of Honorship. Debt means debt and equity means stake. The meaning of the loan is that you were given hundred rupees and you keep giving me a little interest and 100 rupees gradually. Equity means I gave you hundred rupees, now I do not want hundred rupees, but want a stake in the company. Your faith is strong, if you do not have revenue, only Idea, then angel investment is very useful. There are also online platforms for angel investment, such as Indian Angel Network, VentureCatalyst, Chennai Angel, Mumbai Angel, Lead Angel. From there you can get good amount. In return, some percentage stake in the company will have to be given. You do not need to pay interest immediately here.

6. Accelerator & Incubator.

You have a good idea of ​​doing business, which you can start, but do not have the money. So incubators give you a place in your office, give mentorship, give advice, also give financial help. At the same time, with the help of your technology experts make your website, app. That is, they get connected with you in every way, in return they take a stake in your company. There are many accelerators and incubators. Y Combinator, one of the best combinators in the world, which produced Airbnb.

7. Vender Finance/Purchase Order Finance.

This is also a good way to raise money. There are four or five ways to earn money in it. It also includes Equity Instrument and Dates Instrument. Suppose, you have to start a new business but you do not have money. You need a big machine, big equipment for business, then you will ask the seller to give the machine or equipment. If the cost of the machine is one crore, then you will tell him that the value of your company is five crore, you will give him a 20 percent stake. You will take the machine by giving it, you will earn money from the machine and when the company becomes big, then it will get five crore instead of one crore. It became an equity instrument. This is how the dates instrument is. In this Customer Ensemble Process, like you are my customer, you have to buy my course, I will meet a bank, introduce them to you and say that they want to buy my course, the bank will give me 36 thousand of my fees and I will give it my course Give. Now and using that course, the bank will return a little money.

8. Bill Discounting.

This is also a very good idea. For example, I have to sell goods to someone and I got the bill. I will take that bill and go to the bank, tell the bank that I have received the order, but do not have funds to make the goods. You give me the fund instead. The bank gives the money after seeing the bill. One of the advantages of this is that the customer gets a comfortable payment, the businessman's goods are also sold and the financier also finds a way to earn. Here you neither have to sell the stake nor take loan.

9. Venture Capital & Venture Debt.

Now your business has grown, you want two-four but not fifteen-twenty-fifty crore rupees. It requires venture capital. They take a stake in your company and make you a big businessman so that their stake also increases. That is, the front ten million has been put into your business, then it will be an effort to make your company so big that it becomes a ten crore share of fifty crore. So it helps you in every way to increase business. There are some such ventures, such as Essel Group, Nexus Group, Crest Ventures, Matrix, Nespers etc. They understand your business and are ready to finance it immediately. They do not need any guarantee or property, they believe that you will be successful in work. Just on this belief, they are ready to give you money.

10. Initial Public Offering (IPO).

If you work for five or ten crores, you can still come on the stock exchange, even if you do the work of one crores. Provided that your company must be two years old with private limited. Look at D-Mart for example, D-Mart had launched IPO in the year 2017, today it has become a company above one lakh crore. Since then, D-Mart has grown nearly five times.

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