Best Way to Fund Your Startup without Waiting For Investors
As a startup enthusiastic, i'm well aware how hard is to raise capital for a early stage startup businesses which doesn't have a proper traction but in an indeation stage! it doesn't matter you are a degree holder or college drop out, It's always very hard to get decent capital for your business ( unless your parents are rich :) ), This post maybe useful for the students and budding entrepreneurs who already working with their idea and ready to enter the market! Let me give you some practical tips which i tried myself and succeeded, Maybe it's useful but not that easy at all :)
- 2) Small Bank Loans : Get all your freelance work income to your bank account instead of accepting hot cash, Based on that cash flow you can obtain minimum 100,000 rs personal loan from any SL banks justifying the purpose of the loan ( 60% of the loans can be obtained without guarantors) just makesure avoid all these micro credit companies it will ruin your business with NO time. Try Sampath Bank, NDB, BOC and their lending policies bit of friendly to the startup entrepreneurs. Check interest rate, documents from : Bank Loans | Compare Rates , http://mulya.lk/borrowing/loans ,
- 3) Credit Cards : I strongly recommend to NOT to use this option as capital, but it's always fine if you are using it for a very short term needs such as operational expenses, credit card offers, etc! Before you apply , Learn and compare the the interest rate, grace period, credit limit and everything from https://www.moneta.lk and the apply online from their website.
- 4) Sell used / unwanted items : This is one of my favorite way to get some quick cash for manage the day to day operational expenses! Sell your used bicycle, motorbike, car parts such as tires, wheel, modifications that you don't need any longer, DSLR, mobile phones, accessories us through online portal such as bundlhub.com, ikman.lk, daraz.lk, secondhand.lk,etc and put it in local news paper based on the ROI ( hitad.lk) as well.
- 5) Rent your space / products : Let's say you own an apartment or a small house with four rooms and there is a room that you can give someone for a short term rent like a home stay for the budget travelers. Simply list your property through https://www.airbnb.com ,https://www.booking.com , Google Map, Facebook Business page and you will get direct customers from such sources, Alternatively you can rent your motorbike,bicycle,cars for such travelers too.
- 6) Join Startup and Incubation Programs: This one of the tested proven method working absolutely great in Sri Lanka's startup band wagon. Most of the startup programs are offering cash price with extra perks ( Office space, free audit & incorporation, free legal support,etc). This is where you can challange your idea and win cash prizes that you don't have to pay as an equity or convertible debt but an appreciation ( grant) from the community for your great idea. If possible submit your pitch-deck via Spiralation ( an Initiative from ICTA) , Venture frontier Lanka , Startup Weekend Sri Lanka , http://www.yarlithub.org , https://mora-ventures.com , Angel Hack Sri Lanka etc
- 8) Ask Friends and Relatives: I'm sure this is where you may get big NO as answer especially from your relatives, but (true) friends tried to help you as much as they can! When borrowing from relatives and friends always pay back on time to respect their immediate help.
- 9) Crowdfunding Campaigns: This is one of the best method i heard but didn't tried myself yet, There are few Sri lankan startups and small businesses over funded 300% of capital from crowdfunding platforms which they never expected ( Eg: Their funding goal is 300,000 LKR and received 965,000 LKR), This method is very effective and you don't have to repay back to the backers but of course perks or products you need to return based on your initial gig's :) Checkout http://tribefunds.lk or reach the the Tribefunds founder directly via roshaanr((@))tribefunds.lk
- 10) Venture Capital and Angel Investors : incase if you have enough traction and ready to move to the next level then you might needs to approach to the professional Venture capitalist(s), firms or Angel investors instead of roaming to the same boundary, in such case try https://crowdisland.lk & http://www.bovcapital.com
There are tons of ways to raise capital for your dream startup, I wrote this specifically for the early stage entrepreneurs who need quick cash instead of going through the typical Venture capital and Angel investment process! Again, If you've a great passion about what you're doing then there is always a way to reach to that destination too yeah;;:)
Hope it helps :)
in Sri Lanka