Running a business/start-up requires a lot of effort, skill, dedication and hard work. Without these, it is very hard to stay in the competition. But one extremely important ingredient in this recipe is funding, because if you do not have that, no matter how much effort you put in at some point you will require money to move forward. Money is like the lubricant of a machine, it runs very smoothly if used in an adequate amount, it can work decently for a while without the lubricant, but after some time the machine starts to go bad and eventually stops working.
At the Start, Be Your Own Investor/Banker
They first step for any startup or a business in this respect is to fund themselves before knocking on other doors. Giving yourself that initial funding, will help you learn how to spend wisely and take good decisions. Also, it gives the investors a good impression about you and you have a track record to back it up.
Crowd-Funding?, Be Realistic.
The second option most people turn to after investors is crowd funding. Crowd funding has become really popular these days with websites likes Kickstarter and Indiegogo coming into the picture. This option heavily depends on how you manage your campaign and how you sell your product or yourself to the people. It should be an offer lucrative enough for people to want to invest in your idea.
Know How Much To Save
For a startup to start earning any amount of stable cash, it takes a while. For the initial year or so, you just have to burn your cash and savings with the hope that you will get returns. So before having a startup one should be very sure that they have enough funds to run the startup for at least 1-1.5 years without outside help. Apart from this, the funds you have also needed to support your family life as well, so it might be a good idea to put a decent amount of money aside to sustain your family for two years. Doing this will take a lot of pressure off your head and you will not have to worry on this end at least.
Always Have ‘Plan-B’
And lastly, always always have a backup option. Do not just rely on one source of income or your savings. You need to have a plan B, an alternate source of income for if things go wrong. Even the smallest of things like freelancing, or renting out space can be of help in a dry spell, so always have that option open. These are just a few suggestions that should be kept in mind while handling the finances of a startup.