Right WAYS of Getting FUNDING

Getting Finance is an asset that needed to infuse at every stage of Business Development &Strategies to achieve the target growth.

 A Life Cycle of Company can be represented by inclusion of development stages – StartUp, Rapid Growth, Maturity, Decline, Re-birth/Death. Therefore at each stage of development of company requires adequate amount of fiscal support for withstands competitiveness in market.

All SMEs require funding for asset creation/investment and working capital throughout its life cycle. At Life Stages acquisition are terms of either Debt or Equity, depend upon the business model. Also figure out for Long Term / Short Term or Internal / External Funding’s.

 External Funding Sources :

• Angel Investor – High Net worth individuals, Invest in New ideas, Take risk, Driven by entrepreneurial spirit.
• Venture Capitalist – Providing for early stages, Scaling up operations, Guidance and Support in business strategy.
• Private Equity – Invest for well established companies, large funds for expansion and growth, take well defined risk, good exit strategy
• Public equity – Retailers Investors, Institutional Investor- Pension Funds, Mutual funds, Corporations
• Banks – Public capital lending institutions
• Government Grands &Subsidies  – They finance the operational stages of business.
• Strategic Investor – They are partner in funding towards a common need to meet/satisfied.
• Customer Funded 

1. Matchmaker Model – Real state broker
2. Pay-in-Advance Model – consultants
3. Subscription Model – Media industries
4. Scarcity based Model – private firms
5. Service-toproduct Model – Software firms

• Crowd Funding – A practice of funding a projects/venture through public contributions via typically internet
• Factoring, Leverage Buyouts

Internal Funding :

• Profits, Sale of assets, Leasing
• Operational Efficiencies
• Own Funds-Equity
• Boot Strapping

Short Term/ Long Term Borrowings in terms of Equity, Debt, Trade Credit, Overdraft, Bills Recievables/ promisory notes.

Working Capital Funds includes sale of asset, profit, inventory reduction, late payments, quick collections, cash flow mangement, savings operational cost, bank, credit cards.

 FUNDS are needed at Stages for a reasons that need to met. 

1.  Ideation                 As a Seed Fund
2. StartUp                   Establishment of business/market/purchases/operations
3. Growth                   Operational Funding/ Working Capital – expansion of market
4. Mature                    operational streamlining/ maintainence – diversification
5. Decline                   revamping/ Merger or acquisition

SOURCE of Funding  & Purpose to be discussed below.

• Self Financed                     –   Initial Start-Up
• Angel Investor                   –   Initial Start-Up
• Venture Capitalists          –   Just after Start-Up
• Private Equity                     – Long Term growth of established company
• Public Equity                     –   Capital Investment requirements of an established company, exit of VCs
• Banks                                   – Financing for most operating needs

All above Financial exercise are need to incorporated for specific purposes to lead successful business strategy.

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