‘Funding’ means the amount needed to begin a business. A business depends on many factors such as manufacturing, packaging, sales and marketing, office space and many more and all these needs investment. Many startup companies raise funds either from third parties or from banks and few by their founders in order to prevent debts.
The funding might be for one, two or many reasons as startups include many purposes. Being an entrepreneur there are certain licenses and certification required for your business and should ahead with legal proceedings only.
One must have a clear insights regarding investment like why funding is needed, how to rise, types of funding and sincerely do a core research. There are numerous number of options available for the sources but should match the stage of operation.
Why Business Funding is Required?
Requirement of business funding has no limitations as it comprises of different areas for investment. Investments is categorized in three stages, they are- pre-seed stage, seed stage, early traction and scaling. When you are at your startup lifecycle the amount of fund needed is usually small cause during the initial days you just work on your basic ideas. To bring life to your ideas one can think of bootstrapping or in other words self-financing.
This means one relying on his or her own savings to begin with the startup. Other sources includes friends and family or pitching events. When the business has reached certain heights you need to escalate the demands which need a required amount. This comprises of sources such as the incubators, government loan scheme, angel investors and crowd funding. This particular stage is followed up by early traction and scaling. There are various sources for different level of entrepreneurs which can help you get money for expanding your business
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