1. Approach a bank
The foremost accessible source is to visit a bank wherein you already holds an account and shares a good customer relationship with the bank. Bring your business plan to the loan officer and get access to loan if you qualify for a loan. If the bank denies your small business loan application, you could also try to get a personal line of credit from that bank.
2. Approach NBFC’s
Non Banking Financial Corporations (NBFC’s) can be approached to access financial services who would not have access to conventional banking services. NBFC’s are engaged in the business of loans and advances and thus provide banking services without meeting legal requirement/definition of a bank.
3. Seek informal sources
Startups can seek help from their friends and family. Some entrepreneurs have stated that loans from their family contributed to their success because they had extra motivation to not lose the investment.
4. Venture capitalists
Venture capitalists are those who are willing to invest in the early stages of your startup/ company in exchange for an equity share. Sometimes they also provide with some other resources that can lead to further growth of the company.
But research and statistics shows that venture capital firms are typically drawn towards startups in software and technology sectors.
5. Angel investors
They differ from venture capitals. Angel investors provide capital to startups and their funding can also be exchanged for convertible debt. Angel investors can take an equity share of your startup in exchange for their investment, their funding can also be exchanged for convertible debt. Secondly, angel investors are likely to supply funding to businesses when they are still in the early stages, whereas VCs typically get involved a little bit later.
Angel investors may also provide you with expert advice and management skills. Some of the popular Angel investors in India are- Indian Angel Network, Mumbai Angels, Hyderabad Angels etc.
6. Accumulate personal savings/ Bootstrapping
If becoming an entrepreneur is your only aim then start saving as early as possible and dip into your personal savings when required. Apart from this you can also use your money saved up for down payment of conspicuous consumption.
This idea is suitable only if the initial requirement is small. Some businesses need money right from day one and for such businesses, bootstrapping may not be a good option.
Crowd funding is gaining popularity these days. Entrepreneurs or startups can use crowdfunding websites to raise capital. It refers to taking a loan, pre-order, contribution or investments from more than one person at the same time.
Some of the options are- Kickstarter, AngelList, CrowdFunder, RocketHub, Fundlined etc.
8. Business Incubators and accelerators
Business Incubators nurture the business by providing shelter tools and training and network to a business. Accelerators do more or less the same thing but it helps to take a giant leap unlike Business incubators.
Some of the popular Business Incubators and Accelerators are- Amity Innovation Incubator, Startup Village, AngelPrime, Villgro, CIIE etc.
9. Participate in contests to raise fund
Such contests help to maximize opportunities to raise fund for your startup. Participation in such contests also enhances knowledge and encourages further business ideas.
Some of the popular startups contests in India are- Microsoft BizSparks, NASSCOM’S 10000 startups, Lets Ignite, Next Big Idea Contests etc.
10.Government programs for startups
The government of India has launches a host of programs and schemes to boost innovative startup and employment in India. For example- 10,000 Crore Startup Fund, Bank of Ideas and Innovations program, MUDRA scheme etc.
Further, the various state governments have also come forward to encourage small businesses with various programs like- Kerala State Self Entrepreneur Development Mission, Maharashtra Centre for Entrepreneurship Development, Rajasthan Startup Fest etc.