Adequate Startup funding is an absolutely critical element in launching and sustaining any successful business venture. It starts from assessing your personal and business expenses, eliminating the extras where possible, and planning for sources of alternate funds, then you should be able to secure adequate startup funding.
Adequate startup funding is certainly a worry factor for every 1st Generation entrepreneur. Several questions hit your brain almost every moment. Will I be able to secure enough funds to start? Should I quit my job to concentrate full time? How will I cover my monthly expenses? How much fund is enough to start?
Before actual launch of your dream venture you must have done your homework to secure adequate startup funding needs. Your advance planning for adequate startup funding is the assurance for its launch and sustenance.
Accessing your Personal Finances
Review all your personal expenses from your bank and credit card statements. List out all unnecessary expenses and eliminate them. It’s not going to be easy, but if you’re really serious about getting your venture of the ground you really need to reduce your personal expenses.
Taking control of your personal expenses doesn’t mean you have to quit enjoying life. You just have to prioritize for time being. Skip the coffee at that expensive joint and enjoy cutting chai instead. If you’re going out for dinner, look out for offers on your cards or try to order just enough to cut the cost. Hold off on that tropical vacation for a year.
Evaluating Your Business Expenses
Another element of planning adequate startup funding is to minimize business expenses. If you are an IT startup, you are lucky enough to have non-capital-intensive venture. You will have many business expenses to cover though, so you must analyze what those are and prioritize them according to your startup funding needs. Staying lean in the beginning is always the best option.
You may minimize your initial capital expenditure by simply opting for co-working space or incubation facilities provided by many Government agencies like STPI (Software Technology Parks of India) or Startup India.
How much funding is good for a startup?
To launch a successful venture, you need to have at least six months of total required expenses in the bank OR an alternative source of affordable capital. Frankly speaking many people won’t have 6 months of cash to cover their startup funding initially. If this is the case with you too, you will need to find, or keep, a job until you arrange the adequate funds to fund your venture.
You may work part time so you have enough time to concentrate on building your venture. Whether it’s teaching some computer courses at the college or working from home, you have to be bringing in some reliable income which will help you to sustain your venture till it build a client base and sustainable income.
Securing adequate startup funding is one of the most challenging aspects of launching any successful startup. I am sure you don’t want to neglect its importance though. Inadequate startup funding is at the root cause of many startup failures.
The Bottom Line
Do whatever it takes now, rather than repenting in future. Having adequate startup funding means conserving every rupee hard-heartedly. You have to account for every penny you spend and going and save enough to cover 6 months of expenses. If your startup funding is a little short, a part time job is often the most practical means of securing the funding you need.
Though the other options like Angel Investor, Co-Founder, Fools Fund and Startup funds are also available as funding for startups, the most reliable and practical option is to have your own source of funds.
