Business

How To Raise Funds For A Startup Post-Pandemic

Arnab

Business Oct 21, 2021

Are you planning to raise your funds post-pandemic? If yes, you have to scroll down the best option that can work well for you. You have to make the correct selection of the funding options to choose better business options.

Make sure that you do not commit any mistakes in this regard. Try to make your choices in the correct way to achieve your business goals in a better way.

Plan out how to raise your funds from targeted business options that can make things happen properly. Try to make your choices correctly to achieve your business goals in the best possible ways.

There are different types of marketing you will see when you want to raise money for your business.

Benefits Of Raising Money For Startups Post Pandemic

There are several benefits of raising money for startups post-pandemic. Here in this article, you will get the complete details once you go through my article. So let’s find out the details one after the other to get a better insight into it.

1. Allows You To Grow Your Business

The best thing about the startup raising fund is that it allows your business to multiply. But, unfortunately, in the post-pandemic situation, the market for small-scale businesses has become fragile.

You never know what will happen next if you have enough capital in your hand right now. Two valuable benefits you can derive from it. First, you can cut off the operating cost, and secondly, you can focus on employee hiring.

2. You Can Invest In Innovation

Most of the business lacks the technology and innovation especially the SME’s. You have to understand these facts while you want to raise funds for your business from various sources.

Seed Capital is required for meeting the innovation requirements of your business. Try to achieve your business goals in the best possible ways to meet your needs effectively.

3. It Allows You To Acquire Other Businesses

Your company may not be a giant organization in your business domain. But if you can make the right choices for your business, you get better results in the long run regarding selecting the best sources for raising funds.

So try to make your choices in the correct direction while developing your business regarding raising funds.

4. Signifies The Vote Of Confidence

Your company’s stakeholders will start to trust you when you have enough capital backup to support your business contingencies. The confidence of the stakeholders will help your business to grow at a rapid pace. It can help you to achieve your business objectives in the best possible ways. The vote of confidence will always be there in your favor.

Different Ways To Raise Funds For Startups Post Pandemic

There are multiple sources and ways to raise funds for the Startups Post Pandemic. You have to identify the ways that can suit your budget and time to get the things done as per your wish and the requirements. Developing a proper investment plan can help your business to grow in the correct way.

1. Bootstrapping

Self-funding is also commonly known as bootstrapping. It is an effective way for startup financing. It is the best option when you are planning to start your business. First-time entrepreneurs often commit this mistake while they start their new venture.

The reason is they do not have enough traction to start their business on a long-term basis. You can make your investments on a long-term basis without having any savings for your friends and families to make a contribution to it. It is another lucrative method to raise the fund for your business.

2. Crowdfunding

Crowdfunding is another lucrative option that you can opt for your business development. In this method, you can take a loan for your business on a pre-order basis. An entrepreneur will provide the details of his business on his crowdfunding platforms to increase the chances of funding options for your business growth.

It can help you to generate your business funding options to develop your business to the next level. The best thing about Crowdfunding is that it will help you to raise funds at a minimum cost. It is one of the competitive places to earn funding. Unless your business is rock solid, you cannot raise the chances of Crowdfunding for your business.

3. Get The Angel Investment In Your Startup

You can seek the assistance of angel investors who can help you to get better returns from your investors. Angel investors can be anyone, even your family members too. Even the reputed companies in the world like Google, Yahoo, and Alibaba are showing their interest in investing their money in startups.

They are one of the best sources for raising funds for your startup business. You have to select the best money-raising medium to develop your business.

Proper planning can work well in your favor. Angel investors are one of the prime investors to increase the chances of getting the seed capital for your business.

4. Get The Venture Capital For Your Business

Raising funds from venture capital is one of the easiest ways to collect money for your startups. There is one limitation in it as the venture capitalists will invest their money in those startups that have the potential to grow.

It can help your business to grow at a steady rate in a short time frame. Proper planning can help you to achieve your business goals if you can get the money for your business from a professional venture capitalist.

5. Accumulate The Funding From Incubators And Accelerators

In the early stage of your business, you can accumulate funding from the incubators and accelerators for your funding option. You can get funding options from the hundreds of startups and incubators in almost all the major cities of the world to provide adequate funding.

There is a slight difference between the incubators and accelerators. The main reason is accelerators do not take an active part in the business whereas incubators can take an active part in the business daily affairs for its development and growth.

6. Raise Funds By Winning The Contest

Today, there has been an increase in the number of contests that you have to take care of while you want to raise funds for your business. You need to plan out the ways in the correct order to achieve your business goals.

Winning a contest that offers a lump sum money can increase your chances to get the required amount of money for your business. It is one of the best means to raise the funds for your business.

Raising funds from winning the contest can provide you the option to save the planned money for better investments in the future. An accurate business strategy can help your organization to grow your business in the right direction. It can increase the chances of your business growth in the long run. Plan out the best means to develop your business.

7. Raise Money Through Bank Loans

Raising money through bank loans is one of the traditional ways of raising funds for your business. It can help your business to multiply rapidly in a short time frame. Prepare the best business strategy that can work well for you by all means.

If you want to get the loans from the banks then you have to show your business plans to them. There are two kinds of bank loans a business gives to its investors. The first type of loan is a working capital loan and the second type is funding.

In both, the forms of raising funds Capital stock of your business may get involved in it. It actually dictates the term and the tenure of the loans to help your business to grow in the right direction.

8. Get The Business Loans From Microfinance Providers

In most cases, it is found that startups do not get qualified for getting loans from the banks. In such a scenario you can collect the loans from the micro-finance providers to get the best out of it.

NBFC(Non-Banking Financial Corporations) provides loans to the startups in the form of micro-finance to start their business at the initial level. It can help your business to grow at a rapid pace in a short time span.

These are some of the risky funding options that you can opt for at your end. Remember that do not make the wrong choices or the selection of the sources for raising funds that can put your money at stake.

9. Product Pre-sales

Selling the products before they are launched in the market is one of the effective ways for raising funds for your business. The product pre-sales is one of the best options as you are indirectly creating your channel partners for your business.

Apple and Samsung have started investing their money in the pre-sales model for developing their business in the right direction. It can help you to achieve your business goals in the best possible ways.

Product pre-selling can help you to achieve your business goals in the right direction in a short time span. Prepare the best mode of raising the funds that can work well for you.

10. Selling Assets

Selling out the assets in a crisis situation is one of the effective means for raising funds for your business. It can help your business to grow and prosper in the right direction before getting stopped in a crisis situation.

Selling the assets can help you to meet short term fund requirements of your business. Once your business gains stability you can get back all the assets you have sold in the market.

During the pandemic, it has become quite difficult to raise money at a faster pace. It has actually collapsed the entire financial system of the world. Startups have become confused about how to raise money during a pandemic?

Final Take Away

Hence, these are some of the best sources for raising funds you can seek for developing your business post-pandemic. It is better to say that post-pandemic these are the best options available in your hand for raising funds for your business. You have to ensure that you do not make any mistakes while selecting the best options for raising the money.

Frequently Asked Questions (FAQs)

1. Is A Bank Loan A legit Idea To Raise Money For Your Start-up Business?

If you have a strong business plan to show to the banks then it is a legit idea for raising funds from the bank loans. Otherwise, banks may deny your candidature to grant loans for your business. Banks will cross-check whether your business has the profit potential to grow in the future or not.

2. Can NBFC Provide You Security For Your Investments?

NBFC can provide you initial fund support to your business but they cannot guarantee financial support to your business. You cannot consider it as a reliable fiscal sponsorship for your business to grow in the latter half of your business.

3. What Is The Best Way For Raising The Seed Capital For Your Business?

There are several ways you can raise the seed capital for your business from various sources.

Angel investors.
From your personal savings.
Incubators.
Accelerators.
Micro financiers.

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Arnab

Arnab Das is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.

Beyond the Bin: How Food Waste Impacts Business Profitability

When it comes to food waste, people usually frame it as an environmental thing. It leads to landfills, methane, and climate change. But the money side is just as heavy. Companies in food production, distribution, and retail bleed cash when waste piles up. It is not just a spoiled product. Rather, it is inefficiency. As a result, profit margins shrink and stability gets shaky. And the scary part is that it creeps in quietly. In fact, cash flow and supply chains might wobble if waste is not managed properly. The Unpredictability of Waste Waste does not follow neat rules. Hence, it is hard to pin down. Meanwhile, consumer demand shifts overnight. Apart from that, there are seasonal spikes and random market swings. Suddenly, shelves are stacked too high. Also, perishables do not move fast enough. Moreover, transport damages them. These lead to straight losses. For businesses running razor-thin margins, even a 2–3% spoilage rate feels like a punch. Storage and handling are another headache. For instance, a cooler breaks down, the temperature slips, and someone makes a process error. As a result, you might see whole batches gone as revenue and brand reputation take a hit. Hence, suppliers lose trust, and relationships are strained. Consumer demand is volatile Seasonal trends are unpredictable Equipment failures are costly Spoilage leads to reputation risk Operational Inefficiencies and Their Financial Fallout Waste is not random. It is often a symptom of deep operational cracks, overproduction, forecasting errors, and inventory misalignment. Hence, restaurants overstock and groceries misjudge demand. As a result of extra food, there is extra waste. Moreover, labor costs rise and disposal fees stack up. Producers and distributors feel it across the chain. Also, there are storage inefficiencies, logistics bottlenecks, and losses multiply. And the ripple effect is brutal. Unsold product forces price adjustments. As a result, costs get passed down. This way, partners and consumers feel the instability. Waste does not just sit in dumpsters. It shows up in overhead. Labor hours wasted on spoiled goods Disposal fees and compliance costs Market instability from fluctuating prices As a result, the fallout spreads and predictability vanishes. Practical Strategies to Reduce Financial Exposure Cutting waste is not just green PR. Rather, it is financial armor. Here, tech helps with forecasting tools, real-time inventory tracking, and smarter procurement. Losses shrink when supply matches demand. Artificial intelligence and data analytics help sharpen predictions. Companies can balance stock with actual need. Meanwhile, manufacturers can repurpose surplus. Hence, byproducts and donations are turned into new products. Hence, it is value recovery instead of trashing. Apart from that, financial strategies matter. These include hedging and flexible purchasing contracts. Basically, these cushion against sudden market shocks. As a result, margins stay protected and cost structures stabilize even when supply chains wobble. Forecasting with AI helps with a tighter demand match Repurposing surplus helps to recover value Hedging contracts helps with margin protection Viewing Waste Reduction as a Business Imperative Food waste is not inevitable. Rather, it is a risk. However, it is manageable. Strategic planning plus operational efficiency can shrink it. Moreover, companies that act early reap benefits like lower costs, stronger supply chains, and profitability that does not feel fragile. It is not just sustainability but an opportunity. In fact, smarter forecasting, modern tech, and financial planning all combine to protect the bottom line. Moreover, they also push the industry toward a more sustainable future. Hence, waste reduction is not charity. It is business sense. For deeper insights on cutting financial losses tied to food waste, see the resource from Commodity & Ingredient Hedging, a milk insurance company. Read Also: Smarter Packaging: Protecting Your Food, Health, and the Planet Preventing Product Recalls: The Critical Role of Equipment Design

Navigating Business Exits: Choosing The Right Team For A Seamless Transition

To begin with, the concept of leaving your business necessarily involves proper and savvy planning. If you’re thinking of selling your business to a third party or transferring it into the hands of family members or employees, take mergers and acquisitions when doing this having the best team around should be vitally important for a successful exit. This article sheds light on the details of business exits and helps you choose your team either a broker or an advisor to back up your exit strategy for the business. Understanding The Business Exit Landscape Before diving into the team choice method, it is critical to understand the numerous commercial enterprise go-out options available. Selling to a 3rd celebration, transitioning the enterprise to family or employees, or carrying out a merger or acquisition all present particular demanding situations and possibilities. Aligning your commercial enterprise exit approach with your private and monetary goals is a vital first step in the technique. The Role Of Brokers And Advisors In Business Exits Brokers and advisors play wonderful but complementary roles in facilitating successful commercial enterprise exits. Brokers concentrate on facilitating the sale of the commercial enterprise, figuring out ability customers, and negotiating offers. On the other hand, advisors provide strategic steering for the general exit method, assisting in selection-making and lengthy-term making plans. Understanding these distinctions is essential in determining the kind of expertise your business desires. Qualities To Look For In A Business Exit Team Experience In Business Exit Planning When deciding on an enterprise go-out team, prioritize enjoyment in exit planning. Assess the team's song report in successfully navigating commercial enterprise exits, and inquire approximately their specialization within the particular go-out method you're considering. Whether it is promoting a 3rd birthday celebration or passing the commercial enterprise to the following era, a team with relevant experience is a useful asset. Industry Knowledge Industry-specific know-how is critical for crafting a tailored go-out approach. A group with deep expertise in your commercial enterprise's enterprise can navigate nuances, recognize market traits, and expect capability-demanding situations. This enterprise expertise ensures that your exit plan aligns seamlessly with the dynamics of your commercial enterprise surroundings. Communication Skills Effective communication is essential in the commercial enterprise go-out technique. A gifted team ought to be obvious in presenting facts and steering, ensuring that you, the commercial enterprise proprietor, are properly informed at each stage. Clear communique with potential consumers or successors is likewise critical for a smooth transition. Tailoring The Approach To Your Business Every enterprise is precise, and the go-out plan needs to mirror its characteristics. The selected team should understand the distinct elements of your commercial enterprise and tailor techniques for this reason. Customization of the exit plan ensures that it aligns together with your imaginative and prescient, dreams, and the particular demanding situations your commercial enterprise can also face at some stage in the transition. Read Also: Importance Of Entrepreneurship: Types, Features & Benefits Financial Expertise Given the financial implications of an enterprise exit, it's vital to evaluate the economic information of the chosen team. They have to recognize the elaborate monetary elements of your business and align their techniques with your monetary targets. This ensures a complete method for the monetary components of the go-out plan. Building A Comprehensive Exit Plan A successful go-out plan includes a step with the aid of the step method, together with commercial enterprise valuation, the identity of potential consumers or successors, and addressing criminal concerns. Business valuation provides a foundation for negotiations, whilst figuring out the ability of buyers or successors ensures a clean transition. Legal considerations, such as documentation and compliance, are critical to keep away from complications at some point in the go-out procedure. Timeframe And Flexibility Establishing a practical timeframe for the go-out method is vital. A nicely structured plan with clean milestones helps control expectancies and ensures a clean transition. However, flexibility is similarly vital. Adapting the plan to converting occasions, marketplace situations, or unexpected activities enhances its effectiveness. Selecting The Right Broker Or Advisor For Your Business Exit Researching potential applicants, accomplishing interviews, and comparing proposals are crucial steps in choosing the proper team for your business. Look for groups with a validated song document, effective verbal exchange abilities, and an obvious approach to charges and agreements. Consider searching for referrals from dependent sources and click here for more information selling your business. Conclusion Navigating an enterprise calls for meticulous planning and the proper group employing your facet. Whether you pick a broking, guide, or a mixture of each, their information must align together with your enterprise desires and enterprise dynamics. By prioritizing experience, industry understanding, effective communique, and monetary understanding, you may ensure a continuing transition and set the degree for a successful enterprise to go out. Read More: Malpractice Vs Negligence – Let’s Find Out The Difference Is Startup Business Insurance Necessary For New Businesses? What Is Commercial Insurance? And Its Different Types – Let’s Discuss

Vertical vs Horizontal Integration: What Are The Key Differences?

Growth and expansion are the fundamental aspects of any business. It is a universal truth, and you cannot negate it from your standpoint. You cannot sway away the reality from your endpoints. Vertical vs Horizontal integration is a business model that most businesses adopt. Horizontal integration is when a business acquires the same line of business at the same level of the value chain. It eliminates the competition to a greater extent. On the other hand, vertical integration includes ruling over the entire industry by covering the supply chain. It all depends on the organization and which form of integration they would like to adopt. You need to identify the key factors of each process that can help you to make your decision wisely. Key Differences Between Vertical Vs Horizontal Integration There are several points of difference between vertical vs horizontal integration you cannot negate these points from your end. Basis Of ComparisionHorizontal IntegrationVertical IntegrationConcept When two firms mix with each other due to their same product lines and products, it is horizontal integration. Vertical integration is that stage of an organization when one company acquires another company staying at the same stage or path. Objective Enhancing and increasing the size of the business. Developing the supply chain of the company. Consequence Your company gains maximum market share by eliminating the competition. Reduction of the wastage and cost. Capital Requirement The requirement of capital here is higher. The requirement of capital here is lower. Self Sufficiency No, it is not a self-sufficient approach. Yes!! It is a self-sufficient approach. Strategy Used To Control Market analysis Industry requirements After getting the tabular format of differences between the two concepts, let’s get the core insights of it as well. 1. Meaning Horizontal integration takes place when two firms combine with each other when their products and production levels are the same. In the case of vertical integration, the objective is to acquire the shares of the other company. You need to go through the meaning of the two integration processes to make the application in your organization. Once you follow the process, things will become easier for you. 2. Objective Horizontal integration aims to increase the size of your business. On the other hand, vertical integration aims at smoothening and strengthening the production process. You need to be well aware of the objectives of vertical vs horizontal integration. You cannot make your choices all of a sudden. Read the objectives behind it for your organizational development. 3. Consequences Horizontal communication eliminates the chances of competition. In other words, it wipes out the competition from the market. On the other hand, Vertical integration lowers the wastage and cost of production. You can use horizontal integration to improve your brand presence in the market. Again in the case of vertical integration, you can use it to reduce the wastage in your production and distribution process. 4. Capital Requirement The capital requirement in the case of horizontal integration is high compared to vertical integration. You cannot negate the investment part in the process of your brand development. The marginal cost will be less. You need to have enough capital with you to initiate the process of horizontal integration. On the other hand, in the case of vertical integration, minimum capital is enough to initiate the process with ease. 5. Self Sufficiency The chances of self-sufficiency in the case of horizontal integration are not there, whereas in the case of vertical integration, the chances of self-sufficiency are present. You need to get through the two integration processes to make your final business decisions. If you want to do business independently, then horizontal integration can be a loss for you. On the other hand, Vertical integration can be a great option for you if you like to do independent business. As per the experts, self sufficiency is important. 6. Controlling Factor Vertical integration can assist you in gaining control over the whole industry. You can gain control over the entire market with the help of horizontal integration. The chances of growth in the case of vertical integration are higher compared to horizontal integration. Vertical vs horizontal integration can make your journey easier in the process of controlling the business. You cannot make things happen all of a sudden. What Is Vertical Integration? Vertical integration is that stage of an organization when one company acquires another company staying at the same stage or path. Vertical integration occurs when a company expands its operations by acquiring or merging with businesses along its supply chain or distribution channels. You need to consider the inventory turnover ratio. Advantages Of Vertical Integration There are several advantages of vertical integration that you must know at your end. Some of the key core benefits of it are as follows:- Vertical integration can help you to achieve cost efficiency. It can help in bulk purchases and reduce the cost of transactions. Distribution cost is reduced as it cuts off the requirements of the middleman in the process of integration. Your organization's products can meet the desired quality level if you make the application of vertical integration. Price fluctuations of the suppliers can be reduced greatly due to the presence of vertical integration. Synergies between different stages of production and distribution can lead to increased overall efficiency. Your network marketing can grow due to this integration. Backward Vertical Integration In backward integration, a company acquires businesses that supply it with essential raw materials, components, or services. This allows the company to have more control over its supply chain, reduce costs, and ensure a stable supply of inputs. For example, an automobile manufacturer acquires a steel company to secure its source of steel. End Of The Integration Process Hence, from the mentioned discussion, I think the differences between vertical vs horizontal integration are clear to you. You need to understand the process that can make things easier and more effective for you in the long run. You can share your views and opinions with us in this regard. It will help us to know your take in this regard. Try to convey your feedback to us from time to time. Read Also: What Is A Holding Company? – Importance, Operation, And Pros & Cons What Is Net Operating Income? How To Calculate NOI? What Is The Leverage Ratio And How to Calculate It?

A Physical Shop Or Online Store: What Is Better For Business?

There was a time when having a brick-and-mortar store was essential for anyone in business. To gain the trust of customers, it was imperative to invest in a physical store. However, things have changed a lot post-Covid-19 pandemic. Due to the epidemic disease and the lockdown, brick-and-mortar stores across the globe took a massive hit. In such trying times, online stores saw a massive boom. E-commerce websites like Amazon made record sales and subsequently, revenue. It was then businesses started digitizing. Are you looking to set up your own business? What do you have in mind? Are you going to set up a brick-and-mortar store? Or would you like to have an online store? Perhaps, a website or a social media page? In this article today, we're going to check out the pros and cons of physical shops and online stores. Hopefully, it will help you make the right decision. Pros And Cons Of Online Store As mentioned earlier, a lot of things have changed in the last two years. Most people now prefer buying things online. They order stuff online and get it delivered to their doorstep. It helps save people time and energy. An online store is all about user convenience. The more convenience you provide to your customers, the more they'll shop at your store and the higher would be your revenue. It's as simple as that. Not to mention, running an online store is easier than having a brick-and-mortar store. It doesn't require you to hire a lot of people. Instead, you invest in a website, a web designer (which is a one-time expense), and a VPS hosting service that keeps your website functional as well as payment gateways. Yes, incorporating a payment gateway into your website is a must when running an online store. Providing your customers with simple payment methods like credit or debit card payments, Apple Pay, and Payoneer can make them happily shop at your store. Also, don't forget to collaborate with a logistics company as getting the order delivered is also the responsibility of the online store. The only problem with an online store is the management of finances. It's not easy keeping a record of everything when it's all online. Also, many people question your credibility in case you don't have a physical address. It is something that often affects your sales. In other words, it takes some time to establish yourself as an online store and to make people start believing in your brand. Moreover, having a customer service department is a must when running an online store, and that too, with 24/7 availability like Amazon. If anything, it will help you gain your potential customer's trust. When they'll know that you're available to address their concerns, they'll shop more and more at your store. Pros And Cons Of A Physical Store Indeed, all the brick-and-mortar stores now have online stores as well but that doesn’t mean having a brick-and-mortar store is of no use. A brick-and-mortar is a must if you wish to gain your customers’ trust. They’ll know that you’re available to address their problems, so they’ll keep shopping at your brand. Besides that, many people prefer checking out things in person before investing in them. It is especially correct for fashion retailers and tech companies. Nobody wants to take chances with electronic gadgets, appliances, or clothes. Thus, people prefer trying them out before buying them. Well, it’s fair. After all, you’re spending your hard-earned money on all these things. However, one problem is that a brick-and-mortar store could be very expensive. In fact, it’s like an additional expense. It starts from renting a space to getting it designed and decorated and hiring employees. Not to mention, the monthly bills and salaries. Therefore, it isn’t a smart option for a small business or anyone who’s struggling with revenue. On the other hand, it does save you some money on customer service. You don’t have to hire people for 24/7 customer service. Simply add your working hours on your website or store billboard and let your customers know what time you’ll be able to take their questions and address their concerns. The great thing is that it won’t affect your business in any way. The Takeaway Both physical shops and online stores have different pros and cons. For established businesses with great revenues, it’s advisable to have both a physical and an online store. On the other hand, for small businesses or companies who are struggling with revenue and growth, it’s best to stick to an online store and not have a brick-and-mortar store for some time. Additionals: How To Create A Powerful Business Continuity Plan? How To Make Money Fast – 5 Strategy To Follow In 2021 How To Start A Business In 2021 – Best Business Strategies

How To Raise Funds For A Startup Post-Pandemic