Best Funding Options for SME to Expand their Business

Expansion is essential for a business to meet the increased demand and diversify revenue streams. From large companies to Small and Medium Enterprises (SMEs), every business requires an expansion for business growth and development.

SMEs are common in India and have contributed significantly to India's GDP. An SME is similar to a large organisation, except it generates revenues and assets and has fewer employees to carry out all operations of the business. Still, the SME sector needs assistance in business funding to improve its day-to-day functions and long-term business growth.

Despite growing constantly, an SME faces many challenges in accessing funding for business development. Without sufficient funds, it can be difficult for the SME to expand its operation, invest in new technologies, and stay competitive in the market. So, in this article, we understand SME finance meaning and take a look at options available for SME lending India.

Which Companies are Covered Under the SME sector?

Before learning about the most suitable option for SME lending India, let us understand the difference between micro, small, and medium enterprises.

According to the Micro, Small, and Medium Enterprises Development Act, businesses are classified into micro, small, and medium enterprises depending upon the investment made in plant and machinery. A business is considered a Micro Enterprise if it has an investment limit of ₹1 Cr, while those having an investment range between ₹1 Cr to ₹10 Cr are small enterprises. And enterprises with investments up to ₹50 Cr are categorised under Medium Enterprises.

To have a better understanding of the classification of MSMEs, have a look at the table below.

Enterprises	Investment in Plant & Machinery or Equipment
Micro Enterprises	Not more than ₹ 1 crore
Small Enterprises	₹ 1 crore to ₹10 crores
Medium Enterprises	₹ 10 crores to ₹ 50 crores

How does SME Funding help in Business Growth?

An SME can improve and expand its business with the right funding and sufficient funds. Yet SMEs face a significant financing hindrance. As finance is crucial for the success of an SME, and here are some reasons why finance is essential for an SME:

• Funding for operations: Finance supplies the money required to carry out daily tasks like purchasing inventory and paying other expenses.
• Investment in growth: Finance enables a business to invest in expansion opportunities like entering new markets, creating new products, or acquiring smaller businesses.
• Risk Management: Finance aids in risk management by offering insurance coverage and building financial reserves.
• Compliance with Regulations: Finance ensures that a company complies with legal and regulatory obligations, like tax laws, financial reporting standards, and rules unique to a given industry.

Best Funding Options for an SME to Expand its Business

Here are several funding options available to SMEs:

Legal Grants

SMEs can obtain funds from the government or non-profit organizations. These grants are usually awarded to SMEs that are working on projects that align with the goals of the organisation providing the funding. SMEs don't need to repay these grants. However, these grants often come with specific conditions, such as reporting requirements or restrictions on how the funds can be used.

Equity Financing

Equity financing is a common way for startups and early-stage SMEs to raise funds without taking on debt. This approach involves selling company shares to investors in exchange for capital. These individuals become shareholders and have a say in the company's decision-making process by investing.

Debt Financing

Debt financing is when SMEs borrow money from a lender, like a bank or financial institution, to finance their operations or specific projects. The terms of the loan, such as interest rates and repayment periods, are determined by the lender. SMEs can obtain loans or lines of credit to fit their financial needs and are obligated to make regular payments until the loan is fully repaid.

Crowdfunding

In crowdfunding, funds are raised from a large number of people through an online platform. SMEs can launch a crowdfunding campaign to attract investors who are interested in supporting the particular SME business.

Venture Capital

Venture capital involves raising capital from specialized investors who are looking for high-growth potential in exchange for equity in an SME. Venture capital is typically used by SMEs that have already established their business and are looking to expand rapidly.

What is the Best Solution for SME Lending? 

Now that we have understood SME finance meaning, it can be seen that they are essential for a country’s economic growth. The SME sector of India has made an enormous contribution to the economic growth of the country and a significant upsurge in job creation. To achieve such goals, SMEs need the right financing. SMEs can mitigate their cash flow problems with effective working capital solutions by HDFC Bank. And to help business owners, HDFC Bank is providing adequate financial assistance.

HDFC Bank offers working capital services across India with multi-location banking. Any SME can opt for fund-based and non-fund-based finance, including cash credit, overdraft, LoC, etc. In addition, the SME bank offers term loans with customised repayment options. SMEs can take a business loan of up to 50 lahks. With such features, HDFC Bank is the ideal choice for SMEs looking for business expansion funding.

5 Tips for Startups to Overcome the Funding Crunch

Starting a business can be a daunting task, but raising funds to keep it going is definitely more challenging. Many startups face difficulties in obtaining the funds they need to bring their vision to life. However, there are several strategies that startups can implement to overcome the funding crunch and make their dreams a reality. Here are five tips to help startups secure the funding they need:

Create a clear and compelling business plan:

A business plan is an essential document that outlines your startup's vision, mission, goals, target market, competition, revenue streams, and financial projections. It's the first step in securing funding for your startup, and investors want to see a well-thought-out plan that demonstrates how you'll use their money to generate profits. Your business plan should be persuasive, realistic, specific, and address potential risks and concerns.

Network with investors and mentors:

Networking is critical to securing funding for your startup. Attend industry events, conferences, and seminars to connect with investors and other entrepreneurs. Seek out mentors who can provide guidance, advice, and connections. These mentors may be experienced entrepreneurs, industry experts, or investors who have experience in your field. Networking can help you build relationships with potential investors and mentors, which can lead to funding opportunities.

Explore alternative funding sources: While traditional sources of funding, such as venture capital firms and angel investors, are well-known options for startups, they're not the only sources of funding. Crowdfunding platforms like Kickstarter and Indiegogo can be effective in raising money from a large number of small investors. Grants are also a good option for startups, particularly those working on innovative projects or in specific fields. Incubator programs offer startups access to resources, mentorship, and funding opportunities.

Build a strong team:

Investors are interested not only in your idea but also in the team behind it. Building a strong team of talented and experienced professionals can make your startup more attractive to investors. Your team should include individuals with a variety of skills and expertise, including marketing, finance, operations, and technology. A strong team can also help you overcome potential obstacles and challenges and make your startup more successful in the long run.

Be persistent and adaptable:

Securing funding for your startup is not easy and requires persistence and adaptability. You may face several rejections before finding the right investor or funding source. You may also need to adapt your business plan or strategy based on feedback from investors or changes in the market. It's important to stay flexible and open to feedback while being persistent in pursuing your goals.

Subhashis Kar, Founder & CEO, Techbooze, a startup funding consultancy, stated, “For startups, securing funding is a major hurdle, but there are effective strategies to overcome it. A clear and compelling business plan can attract potential investors, while networking with investors and mentors can provide valuable insights and connections. Exploring alternative funding sources, such as crowdfunding and grants, can offer more options. Building a strong team with diverse skills and expertise can make a startup more attractive to investors. Being persistent and adaptable in pursuing funding is also crucial. By implementing these strategies, startups can overcome the funding crunch and achieve their goals, laying the groundwork for future growth and success.”

Startups Must Develop Stronger Biz Plans To Receive PE/VC Funding: Study

Startup ecosystem has become the buzzword in today’s time. And for any startup funding is the lifeblood for them. Industry experts, institutes, and ministries are trying their best to help aspiring entrepreneurs by providing them with solutions and researchers. Recently, in a report by Assocham-Hammurabi & Solomon, highlighted that startups need to develop stronger and sustainable business plans to receive private equity/venture capital (PE/VC) funding.

The ASSOCHAM-Hammurabi & Solomon joint report titled ‘M&A landscape in India,’ noted that after registering 26 percent dip in fund raising by PE firms last year i.e. from $5.7 billion in 2015 to $4.2 billion in 2016, the year 2017 could be the one for consolidation, with PE/VC (venture capital) firms chasing a business having a strong biz model with a focus on unit economics and profit.

Noting that PE has been a broad-based source of equity capital, both in terms of sectors covered and individual companies, the study said that PE in India has invested in over 3,100 companies across 12 major sectors like telecommunications and others which are critical to the country’s development.

Highlighting the role of PE investments in India’s economy, the study stated that the sector invested a total of more than $103 billion between 2001 and 2014.

It also said that despite a drop in 2008, capital inflows from PE have been more reliable than those from other sources of equity funding, including foreign institutional investment, IPOs and equity issuances, such as secondary offers and convertible instruments.

PE inflows have remained strong, even though India’s GDP (gross domestic product) growth rates have plunged from 9.6 per cent in fiscal 2007 to 4.7 per cent in fiscal 2014 amid high market volatility.Report further stated that to

Report further stated that to fulfill the expectations, the government provided a boost to startups with a number of favorable announcements in the Union Budget 2017, which also addresses certain other concerns of the PE/VC investor community.

The study also said that Indian PE industry, finds itself in the thick of opportunities to map a new route to re-emergence. “Factors like improving business sentiment, making the strategic benefits of PE familiar among Indian enterprises and a pro-reform government would accelerate re-emergence.”

According to the report, the core area to focus on should be the PE/VC exits to generate returns for Limited partners (Lps) and free-up capital for further investment. “M&A activity and a strong primary market are expected to buoy the exits.”

Not only this, the study further highlighted that a strong alliance between stakeholders within the industry and the country’s economic objectives would be required for PE to deliver its full potential to the country’s economy.

“The key factors for the success of private equity are – suitable growth opportunities for the industry and supportive regulatory framework,” said the ASSOCHAM-Hammurabi & Solomon joint study.

It also noted that regulatory framework governing the broader financial services and securities industry in India has a direct impact on private equity investors.

“With the introduction of safe harbor norms for offshore funds which are to benefit PE and VC industry and General Anti-Avoidance Rule (GAAR) from April 1, 2017, which is aimed at improving transparency in tax matters and help curb tax evasion the route to re-emergence looks more realistic now. Considering that external environment provides a unique opportunity similar to the government’s ‘Make in India’ campaign, floating a new campaign on the same lines – ‘Manage Indian investments from India,’ could increase capital investment from domestic and foreign sources. With PE contributing more than 40 percent of equity financing today, a set of cohesive and cogent policies specifically aimed at encouraging the flow of PE should be welcomed,” the report added.

Besides, PE appears to accelerate job growth through its portfolio companies. “Between 2001 and 2016, the number of jobs at companies backed by PE posted a compounded annual growth rate (CAGR) on average of almost 9 per cent during the first five years after investment, while the annual growth rate at comparable companies without PE funds was just under three per cent,” concludes report.

Chatur Ideas Announces A Contest To Showcase and Fund Your Startup Idea

In order to foster entrepreneurship, Chatur Ideas, a Mumbai based startup, is coming up with #BeAChatur contest Pan India. #BeAChatur Contest (launching on 1st June 2017) is an intensive 4 month business plan, for individuals and startups to evaluate their business ideas in the risk-free environment of a competition. Unlike other B-plan competitions, the uniqueness of this one comes from the fact that the first round qualification will be based on public voting (30%). Furthermore, the entrepreneurs will get an opportunity to raise real time funds upto Rs 1 crore in front of Indian and Silicon Valley Investors. Top 3 entries based on mentor score matrix will be awarded Rs 3,00,000, Rs 2,00,000 and Rs 1,00,000 separately.

In the last decade, metropolitan cities have witnessed immense growth in startup industry, while tier 2 and tier 3 cities still have a long way to go. Chatur Ideas through its #BeAChatur contest is providing an online platform to all, wherein aspiring entrepreneurs from even the smaller cities can be majorly benefited. Renowned people from the startup ecosystem like Miten Mehta, Umasankar Nistala, Amit Patel, Bhavin Shah, Ajeet Khurana, U T Rao and many more will be mentoring the business plans of the participants.

Previously Chatur Ideas through its network of 1500+ investors has helped close to 650+ startups. Some of the startups who have been benefited through them in the past are Hubilo, Market Pulse, Genietalk, Intuit things, Catapooolt, Healthfin, etc. #BeAChatur contest will primarily be online so there can be larger number of beneficiaries. All business plans will be given a feedback which will be followed by series of mentoring sessions from industry experts. The participants will go through multiple rounds; each qualifying round will take the best ones a step closer to present their business idea and raise funds for the same.

Mr. Devesh Chawla, Founder and CEO of Chatur Ideas quoted, “The idea behind initiating the contest is to reach out to aspiring entrepreneurs who have a business idea but lack the funds to pursue their vision. We also aim to help them up-skill their business plan by providing them a platform with intense mentorship program under the guidance of industry professionals. This competition offers them a chance to present their startup idea to Indian as well as Silicon Valley investors”

To participate in #BeAChatur Contest, one can visit Chatur Ideas website www.chaturideas.com and sign up for the contest. There will be a nominal online registrations fee of Rs 350/-. The contest is open to all with no restrictions to age or profession. The registration for the contest will go live on 1st June 2017. Top 50 contestants will meet industry pool of mentors and will get to discuss their business plan. The top 10 contestants will be announced in the month of September who will stand a chance to introduce their business plan to the investors.

About Chatur Ideas:

Chatur Ideas is one of India’s leading startup enabling platform (as recognized by BRICS International Forum). After acquiring Nurture Talent Academy (India’s first Institute for Entrepreneurs present across 125+ cities and trained more than 34,000 entrepreneurs), Chatur Ideas is training young entrepreneurs across Institutes and providing them access to its vast ecosystem so as to enrich the entrepreneurship culture right from foundation level. Along with helping startups in colleges, it supports mature startups in raising funds, providing social media support, receiving mentoring and assists them with a 360-degree execution support in building their ventures to the next level.

10 Things Investors Want to See in Your Startup

Once you have an idea at place, you need capital to get that idea out of the gate, to the consumers. This is where investors come in. But, it has been observed that entrepreneurs all around the world often end up wasting most of their time pitching to a number of investors to a dead end. This is because a majority of them go directly into action without proper planning or homework. In order to help young entrepreneurs save that time and pitch for perfect results, we at IndianWeb2 have come up with a list of 10 qualities that investors want to see in a startup. Although each investor is different from another, but these ten umbrella points will surely get you a head-start on your pitch.

1) Make Sure You Know Your Market Well

While it's obvious that our ideas sound perfect to us, but one needs to make sure that there is actually a market out there which needs the product/service that our startup is offering. Further, an entrepreneur needs to be aware of its competitors in the market, the problems they're facing and the customer base they're dealing with. While getting inside an already crowded market is not recommended, on the other hand, zeroing on a niche that no one cares about is almost rooting for one's own failure. Hence, know your market, your competitors, your consumers because this is what will decide the future of your startup in a long run.

2) Is Your Startup A Game Changer In Its Field?

One of the sure-short formulas to success is to make a product/service that proves to be a game changer in the market. If you're one of those, there's no one stopping you from getting noticed and climbing to the top of the ladder. Instead of you going to the press, the press will come to you and give you your due. And once the press is there, investors are surely going to find their way.

3) Understand How to Run Your Business

Having a great idea and running a great business are two different things. So, if you do not have any business background, it is recommended you take a short online/offline course for the same. As an investor would want an entrepreneur to have some basic business acumen before they give them their money.

4) Quality of Character

More often than not, an investor might not necessarily invest in the company or the idea, but they would invest in an entrepreneur. A great entrepreneur with the right capabilities has the power of making an ordinary idea extraordinary. Before giving their money, the investor wants to make sure that the entrepreneur shows sincerity, commonsense, trustfulness and a zeal to toil to reach to the top.

5) It's Not Only About the Product!

Being an entrepreneur seeking investment, you need to understand that it is just not only about the product or service you're offering. An investor typically sees the product, the global market reach or distribution it can attain and the differentiation of the business through the quality of it’s people. If you don't check on all the aforementioned three boxes, the investment road might be a lot difficult for you.

6) What Unique Skills You As A Founder Have To Offer

While your idea has to be unique, you as a founder also need to do show the investor that you have what is needed to make that idea as big as possible.

7) Stay Focused What Come May

While there are a lot of parallel things going on when you're trying to take your startup off the ground, you need to make sure that you dedicate most of your time on your product and service as that is what your selling. As an entrepreneur, you should learn how to deal with distractions and stay grounded.

8) Bootstrapping Successfully

If you have successfully bootstrapped your startup, it shows the investor that you have the ability of making sound judgments and will make good use of their investment.

9) Plan B

An investor would like to see that an entrepreneur has an ability of planning long down the road. This means, in addition to the plan A, he has a plan B ready for every scenario that he is looking to venture in today or in the future. A well-planned entrepreneur gives an investor a lot of confidence.

10) Communication Is the Key

While we cannot expect everyone to have good communication skills, but if you're entrepreneur looking to make it big, communication is kind of a pre-requisite. You might have an excellent startup, idea, product or team but if your communication skills fail to get those ideas across the table, it is all for nothing.

[box]The above content was originally published on Equities.com by Gary Bizzo [/box]

10 Tips For Getting Seed Funding For Your Startup Idea

How to fund your startup? Is there any unusual formula to receive funding? Why investors are funding in other startups? What tactics help startups in receiving funding hastily? Of course, these and many other questions knock in startups’ mind daily. But sometimes getting a correct answer for all these questions turn out to be little difficult especially for those who are just starting out on this path with a business idea which is in incubation stage. If getting startup funding was so easy, every idea would have funding, but in reality this is not happening. Well, before you reach out to investors, you need to do your homework on various ends to make sure that your business idea has a real market value and capability to survive. You need to have an innovative idea, well planned business plan, skillful founders’ team and a lot of information to clarify everything to the investors. Moreover, there is no specific formula to get funding for your startup. However the points explained below are keys to consider when you approach investors for seed funding. Let’s start with pre-home work;

1. Have you done all part of your home work to understand your business and target market well?
   
   No one wants to invest in a business that may not have potential. There are many things you should know before starting your startup. So before heading to investors, does your part of home work to confirm that your idea is really a great one. Start with studying about the market potential and where exactly your idea fits in. You need to make sure that there is a real market for your idea as large numbers of people are facing a similar problem and you are going to provide them an effective solution in the form of your product or service. You can also choose an apt technology or method to understand the market and potential.



2. How your business is a solution for a problem?
   
   Ensure that your product or service is solving a problem that huge numbers of people are facing. Investors don’t get inspired with beautiful designs and colours unless your business is not actually solving a real problem. If your idea is solving a problem about that even consumers were not aware comprises high potential to attract investors’ attention.



3. Do you have customers?
   
   Apart from your friends and family how many people believe in your idea? Go out and look for people who have the same problem and believe in your idea as real problem solver. It will also help you in finding some genuine customers for your business. These customers will act as a proof in front of investors that your business idea carries potential to hit the market.



4. Are you taking your customers feedback positively?
   
   Mostly startups ignore their first customers’ feedback as they assume that their idea is more powerful. But ignoring customers’ feedback means you are giving investors a chance to dump you at first stage. Actually there is a lot to know about any product or service and customers are the best source for getting real information about them. Customers and investors can see the potential of your business idea better than you. Furthermore, by matching and comparing customers’ feedback with the data provided by other information sources, you can answer investors’ questions competently.



5. Do you have a killer combination of skillful founders or team members?
   
   Investors love to invest in those ideas which have a killer combination of skillful founders or team members. They believe that failure chances are less when a business idea is grown under the supervision of capable people with right set of skills. If you already have skillful people in your startup team, it will act as winning combination. If you don’t have, please get some on board to add value.



6. Is your idea powerful money making mantra?
   
   Don’t know how to make money from your idea; how to execute your idea for profit? Well, if your business model is not powerful for money making, it is of no use. Nothing is great than presenting a precise and well planned business model in front of investors.



7. Can you take your business idea globally?
   
   Other main points that you need to consider are expansion and scalability! Will you expand you idea to global market? Which country could be potential market overseas and why? Investors will love to know all about your future plans and business model which will make it a lucrative idea worldwide.



8. What is completion in your segment?
   
   Why knowing your target market and competition is everything for a startup? It is important as it help you to understand exactly who are in your direct competition and what they are doing. Investors believe understanding competition prevents business failure as it prepares founders to lessen risks and become adaptive towards changing market. Research is the best way to know all about market competition.



9. Are you really looking for seed funding?
   
   There are a lot of other ways to get funding for a startup. Think wisely on what you want for your startup. Get the answer from you for what you will do with raised amount. Investors want concrete reason for why you need funding and how you will use it in your business. Taking bank loan could be a solution but before that be clear about what you will do with the loan amount and formalities to fulfill before loan passing.



10. Do you have facts and figures along a simple story to show Investors?
    
    Your business plan will be more impressive if you compile all your data, figures, market size etc in order. A compelling story telling to show potential of your idea will be icing on cake.

At last, seed funding helps startups to capture the attention of those investors who want to get in early in a budding startup and exit rich. They get a certain amount of stake and invest in a startup. So without wasting your time start thinking on the shared point. However, before approaching to investors make sure that you do not have greediness for getting seed funding anyhow. Moreover, it’s not necessary that startup life will become easier after rising funding!

7 Ways You Can Finance Your New Startup

Money is the centre of the Universe. When I say this, I'm sure there will be a percentage of people who wouldn't agree with me. But, just hear me out. I surely agree that a person's brain is his biggest asset, but this biggest asset of an human being when combined with the biggest necessity of human being, money, makes for a blockbuster combination. This combo is what a startup requires. While you might have an exceptional idea in place but that idea is no use if you're able to fund your idea and make it a reality.

Here are 7 ways through which you can finance your startup.

1) Loans -

One can consider raising money through the 1953, Congress created Small Business Administration (SAB) Loans. It offers a variety of guaranty programs. One can get money from their own bank, and be guaranteed by one of these programs. One of the best features about these loans is their interests rates. These are often given at interest rates lower than the traditional bank loans.

2) Crowdfunding -

The World wide web or the Internet can act as your saviour in times of distress. Once an make use of some of the most popular and trustworthy crowdfunding websites like the kickstarter etc to raise the desired amount.

3) Self financing -

The greatest of all. Don't ask anyone for loans and money, when you yourself have the capacity to fund your dream. Use your credit card, sell your old gadgets, cut down on unnecessary spendings and voilà, you have the money required to make your dream a reality. Further, the best part is, you don't have to repay anyone or shell out huge interest rates.

4) Family and Friends -

This is one of the most famous methods being used by entrepreneurs. First of all, there isn't a set deadline to repay the loan and the interest rate is often not there or is very less compared to the one levied by the banks.

5) Angel Investors -

They are the people who agree to invest in exchange for equity in the business. Most of the times Angel investors are people who are already massively successful in their own industries and want to encourage others in succeeding in the same industries.

6) Peer-to-Peer Loans -

One needs to P2P websites such as Prosper and Lending Club etc. in order to land himself or herself this kind of funding. One is required to post the amount one needs and why they need it. After this, the potential investors have a thorough look over your request and decide whether or not you're eligible for the loan amount required. Once the loan is approved, you will receive the money. The money will have to be repaid the same way as a loan is repaid in a traditional bank loan.

7) Venture Capital -

Venture capital firms invest in your business in exchange for equity in it. The biggest disadvantage of this method is that these companies often only invest their money in businesses that are already established or have a huge profit potential.

Now that you know seven of the easiest way to fund your startups, when are you starting your entrepreneurial journey?

7 Ways You Can Finance Your New Startup

Money is the centre of the Universe. When I say this, I'm sure there will be a percentage of people who wouldn't agree with me. But, just hear me out. I surely agree that a person's brain is his biggest asset, but this biggest asset of an human being when combined with the biggest necessity of human being, money, makes for a blockbuster combination. This combo is what a startup requires. While you might have an exceptional idea in place but that idea is no use if you're able to fund your idea and make it a reality.

Here are 7 ways through which you can finance your startup.

1) Loans -

One can consider raising money through the 1953, Congress created Small Business Administration (SAB) Loans. It offers a variety of guaranty programs. One can get money from their own bank, and be guaranteed by one of these programs. One of the best features about these loans is their interests rates. These are often given at interest rates lower than the traditional bank loans.

2) Crowdfunding -

The World wide web or the Internet can act as your saviour in times of distress. Once an make use of some of the most popular and trustworthy crowdfunding websites like the kickstarter etc to raise the desired amount.

3) Self financing -

The greatest of all. Don't ask anyone for loans and money, when you yourself have the capacity to fund your dream. Use your credit card, sell your old gadgets, cut down on unnecessary spendings and voilà, you have the money required to make your dream a reality. Further, the best part is, you don't have to repay anyone or shell out huge interest rates.

4) Family and Friends -

This is one of the most famous methods being used by entrepreneurs. First of all, there isn't a set deadline to repay the loan and the interest rate is often not there or is very less compared to the one levied by the banks.

5) Angel Investors -

They are the people who agree to invest in exchange for equity in the business. Most of the times Angel investors are people who are already massively successful in their own industries and want to encourage others in succeeding in the same industries.

6) Peer-to-Peer Loans -

One needs to P2P websites such as Prosper and Lending Club etc. in order to land himself or herself this kind of funding. One is required to post the amount one needs and why they need it. After this, the potential investors have a thorough look over your request and decide whether or not you're eligible for the loan amount required. Once the loan is approved, you will receive the money. The money will have to be repaid the same way as a loan is repaid in a traditional bank loan.

7) Venture Capital -

Venture capital firms invest in your business in exchange for equity in it. The biggest disadvantage of this method is that these companies often only invest their money in businesses that are already established or have a huge profit potential.

Now that you know seven of the easiest way to fund your startups, when are you starting your entrepreneurial journey?

What To Do When Your Competitor Gets Funded?

When there are many fishes in the sea vying for the same thing, there's bound to be competition. It depends on you as a person on how you decide to tackle that competition. Whether you decide to take the competition as a positive or as a negative thing. It all totally depends on you.

And, when it comes to the startup world, the competition is fiercer than ever. Every now and then, we read news about an XYZ startup getting a funding of ABC amount from this and that investor. Such news pieces often leaves an entrepreneur wondering about where exactly is the future of his own startup headed to.

According to some market analysts, competition is good. Even if your competition gets funded an XYZ amount, don't get bogged down by this. In fact, take this as a positive sign of validation of your market sector. It helps in educating the people about why that particular sector is a promising one and ripe for disruption.

There are many live examples in the market where startups and entrepreneurs have been self-destructive by paying an unhealthy attention on their competitors and their leads and totally ignoring one's own customer and market opportunity. Always remember, your startup's competitors are the incumbent. Further, a Healthy competition is bound to keep you on your toes and deliver the best to the customer.

Sometimes, after seeing their competitors rise, companies and company owners end up making the following rookie mistakes. Make sure you don't repeat any.

• Don't try to copy each and every product release of your competitor



• Launching artificially in markets to compete on perceived "land grabs"



• Bad mouthing the competition in public



• Focussing more on the competition rather than on the customer

So, in the end, the question is, what should one do or how should one react when one of its competitors nets a big amount? Well, while there are no set guidelines or rules on how to react, following are some advices that one might consider.

• Focus on your own business, your own market and your own customers



• Reassure your company's employees that it’s healthy to have competitors.



• Reach out to your own investors and reassure them that you still feel good about your market positioning and your product.



• Start fixing your company's shortcomings, if there are any.



• Don't treat it as an emergency and rush into things that you might later repent.

So, Instead of taking your competitors success as a sign of your failure, take it as a positive sign for your market sector and remain optimistic that you might be next in line to receive that huge amount.

What To Do When Your Competitor Gets Funded?

When there are many fishes in the sea vying for the same thing, there's bound to be competition. It depends on you as a person on how you decide to tackle that competition. Whether you decide to take the competition as a positive or as a negative thing. It all totally depends on you.

And, when it comes to the startup world, the competition is fiercer than ever. Every now and then, we read news about an XYZ startup getting a funding of ABC amount from this and that investor. Such news pieces often leaves an entrepreneur wondering about where exactly is the future of his own startup headed to.

According to some market analysts, competition is good. Even if your competition gets funded an XYZ amount, don't get bogged down by this. In fact, take this as a positive sign of validation of your market sector. It helps in educating the people about why that particular sector is a promising one and ripe for disruption.

There are many live examples in the market where startups and entrepreneurs have been self-destructive by paying an unhealthy attention on their competitors and their leads and totally ignoring one's own customer and market opportunity. Always remember, your startup's competitors are the incumbent. Further, a Healthy competition is bound to keep you on your toes and deliver the best to the customer.

Sometimes, after seeing their competitors rise, companies and company owners end up making the following rookie mistakes. Make sure you don't repeat any.

• Don't try to copy each and every product release of your competitor



• Launching artificially in markets to compete on perceived "land grabs"



• Bad mouthing the competition in public



• Focussing more on the competition rather than on the customer

So, in the end, the question is, what should one do or how should one react when one of its competitors nets a big amount? Well, while there are no set guidelines or rules on how to react, following are some advices that one might consider.

• Focus on your own business, your own market and your own customers



• Reassure your company's employees that it’s healthy to have competitors.



• Reach out to your own investors and reassure them that you still feel good about your market positioning and your product.



• Start fixing your company's shortcomings, if there are any.



• Don't treat it as an emergency and rush into things that you might later repent.

So, Instead of taking your competitors success as a sign of your failure, take it as a positive sign for your market sector and remain optimistic that you might be next in line to receive that huge amount.