Question

Step 7) Raising Capital For Your Startup

* If you were to launch your own startup what sources would you use to fund your startup? Why would you use those sources?

Answer 1

In order To fund my start up, one source I would use is my own personal finances. I would try to start a venture that would use more finance from my own savings. This would help me to control my business better and take innovative decisions without much external intervention. Another source I would use is the grants provided by government to help the start ups. There is government grants intended to encourage startups and we should utilize them and grow in business. The third source would be bank loans by giving my personal assets as collateral. I would use this method because there are different types of loans guaranteed by government at low interest rates to help the young entrepreneurs. I would try to best utilize the opportunities available for entrepreneurs. The fourth source would be my friends and relatives because they are the people who believe me and support me in all my decisions. Hence I would not hesitate to ask for financial help from my friends and relatives and would later return a higher amount with profit. Another source of funding I would use would be through forming a partnership with people who possess the finance and abilities to help me in making the start up successful. As my firm grows additional partners would be an advantage to manage the business better and provide enough financial resources to facilitate growth.