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What are the Fund Raising challenges and solutions for Start-ups?

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  • #31
    How to raise fund as a startup

    An investor on the front seat of program is the required to be convinced to get funding. He is the one who is definitely looking for returns on his investment. As a startup pitcher one should know how to convince him/her. It is well known to each individual takin part, that even 30 seconds are enough to influence the investor and dig money out of there deep pockets. So one should know what are the points to paid importance, below mentioned are the points that I learned to be considered.

    Entry Phase

    The very first point that one should mention is the complete plan of entrance considering threats, estimated time and funds required. These are the points one should talk about in the manner that it is understandable to the investors keeping in mind the time limit. Entry phase is conceder to be the first investment element which requires a lot of planning as well as funds.

    Basic Idea

    What the idea is all about, In which field you want to serve are the questions to be answered under this head. One should take care that your idea or business is understood clearly to the investor, there is the saying " YOU SHOULD ONLY INVEST IN BUSINESS WHICH YOU COULD UNDERSTAND ". Once should share each information about the product and services in which he/she is willing to deal. An investor will only invest if he/she understands the source of earning and the depth of business you want to deal In.


    Financial Planning

    Money or funding is the only matter that makes an individual to disclose his/her idea in front of audience, and an investor will only allow you to use his/her money if he/she clearly understands the manner of using money. I guess at initial stage one should not burn so much of there money in advertisement, they should use free digital marketing techniques such as SEO, SMO etc.


    Risk Factor

    Knowledge about threats or about competitors helps in dealing there strengths and using there weakness , so it's always better to know about your competitors. Knowledge about market size, target customers also lies under this head. This will definitely help you to serve your purpose and to gain investment.

    Return

    An investor will only invest if he is confirm about the return on his investment. It's really difficult to convince that by what time you will be able to make return on investment, but having an idea about the same is considered to be good enough to gain the faith of an investor.

    Exit Plan

    It is not always same that an investor would like to be the part of your business for the whole life. An effective plan should contain the knowledge about, when an investor can make there way out of the company.

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    • #32
      Entrepreneurship comes with lots of challenges. And each hurdle teaches us new things. One the most prominent challenge faced by startup firms is procurement of funds. As the firm starts from scratch, it is difficult to find a suitable source. But many people don’t know or we can say, are not informed about the various dedicated machineries that are present to help sustain a business and boost its growth.

      Secondly, the hurdle of forming a perfect team surfaces. It is quite difficult to find someone who will stick with you through thick and thin, to find someone who joins a firm for its idea and vision and not for lucrative salary.

      Apart from these, the various failures that an entrepreneur faces in its initial journey and in future too is proved to be very disheartening.

      Solution:

      Bootstrap Funding:
      It means bringing in owners fund into the business. This type of fund is favourable as it is risk free.
      Startup incubation center:
      These are institutions that provides support to entrepreneurial venture in the initial setting up of the venture.
      Mentorship:
      In many cases, all that is needed to succeed is proper guidance. And most of the times, lack of guidance results in poor decision resulting in financial loss or other. With proper mentorship, an entrepreneur is able to plan out his future actions in a right direction.

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      • #33
        Some of the valuable and important tips on Start-up given by Mr. Mandar Gadkari (Head of Cross Border Angels) during his visit to Taxila Business School

        Problems faced by Entrepreneurs/ start-up
        1. Less or no research: Most of the start-up idea die early or without its birth because they feel funding is not available. Entrepreneurs apply with investors without even knowing about the investor’s, psychology, previous investments and the focus.
        2. Over confidence: Over confidence in the business creates a barrier for entrepreneur to succeed in start-up. They feel and design product and service from their view point and not from customer’s choice. This is because they have never discussed about it with an expert who may validate the idea and curate the product/process.
        3. Road map / Milestone: Due to lack of proper Road map and Milestone results in the failure of start-up. Also, unrealistic roadmap and Milestone has led to problems in funding start-up.
        4. Unrealistic Business model: Most of the time start-up are unrealistic and has no unique feature which makes difficult to get funding. And the business model must be applicable and acceptable.

        Solutions
        1. Bootstrap funding: Bootstrap also known as Self-funding is an effective and efficient way of start-up financing. It is one of the best way of funding which can help to build a billion dollar company.
        2. Business Plan and STP: Entrepreneur applying for funding must have a great business plan than can be executed and implemented. And, proper Segmenting, Targeting, and Positioning of Products and services to customer must be done.
        3. Forecasting and Projection: Business Plan must have a proper forecasting of future cash flow so that investors can have a better idea about the business. At least 3-5 year projection is required so as to let the investor know your future plans and goals. Also, calculation on risk adjusted valuation be done and avoid overvaluation.
        4. Road map / Milestone: Business Model must contain a proper vision and mission and a well set road map to achieve the objectives. And a milestone must clearly be mentioned to show the attainment level during different time in future.
        5. Angel Investment approach: Angel investors are individuals with surplus cash and a keen interest to invest in upcoming start-ups. They also offer mentoring and advice along with capital. So they can be the best funding source for pilot production and initial commercial launch.

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        • #34
          On 26th April 2017 I went to primary school of community centre to show the movie bahubali to the primary students of 1 standard to 5 standards. I went there with my team of four people. And I retched there students were shouting bahubali and they were full of curiosity and during movie we have given the refreshment too. And I learned many think from there first of all I learned controlling skills during my project because there were some time when students were out of control and shouting so I handled the students I control these students and after that I learned about the value of time during the project because we have been told to be in time at school. I completed the project with my team so I can say that I also get some skill regarding team planning and team working

          And now I would like to say that overall I it was a great experience and nice learning platform and we contributed a lot....

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          • #35
            Power of decision making, opportunity assessment and risk taking attitude.

            To get successful in their career one must have these attributes because these are the main drivers that make a difference between the person who are successful and who are not.Leaving the organisation oracle to join a startup company facebook 22 people in 2005, This shows her risk taking ability as she left a secured job for a unsecured social media startup with no future.She became the first female engineer of Facebook- Passionate, decision maker, creator and an endless attributes that define her. Ruchi carries self confidence and is a person full of enthusiasm and determined towards her goal. She always had something creative, something new, to experiment with her. Was in contact with a significantly more prominent reason in life.
            Self Confidence: Last but the most important attribute is self confidence, without which it is impossible to make decisions and build decision making attitude
            She left facebook in 2010 when facebook was increasing a large number of clients to begin her own organization with her significant other. (i.e., COVE)

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