Wednesday, August 29, 2018

Startup Funding Options in India and Negotiation and Conflict Resolution


In India, over 90% of start-ups fail before they complete their first year of operation. No or less funding comes out to be the primary reason for this failure. Finance is the heart and soul of any new business and if that business fails to gain that capital while starting their operations then it occurs a huge problem.

Are you planning to start your own business and looking for start-up funding options in India? Though there are several factors to get funding for your start-up in India, the primary factor remains the level of innovation in any business. And most importantly, you must realize that startup funding depends on the nature and type of your start-up. When you recognize that there’s a requirement of fundraising, then you must start looking at options for the same.

Below is a detailed list of start-up funding options in India that will help you raise investment for your start-up:

1.    Self-funding your business 
Self-funding is the best option to raise capital for your new business. If you have someone within your organization to invest, then it can’t be a better option.

2.    Crowdfunding as a funding option
Crowdfunding is one of the newer methods to raise capital for your start-up. There are platforms where you can post that this much funding is required and you can pre-order the product/service in advance and you get funds from more than a person.

There is a huge scope of Negotiation and conflict resolution in this funding option since there is no guarantee that the start-up’s product/service would be as great a mentioned in their “About Us” section or not. A new business always negotiates on their product/service quality and later they compromise through the reduction in prices.

3.    Get Angel Investment in your start-up
Angel investors are people/organizations with a huge amount of funds and are interested in innovative start-ups. They just not only provide the capital, but they can also offer guiding or suggestions alongside providing funds. There’s a great scope of Negotiation and conflict resolution in this funding option as well since many investors ask for high returns and share from their money invested. Start-ups have to negotiate a lot to get a good angel investor on an initial stage since earning gains in the initial stage is a tough thing for them. But still, this a great start-up funding option in India since you get a huge amount which you can allocate in different operations.

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