After Burning the Cash,What Next?

What if you are not able to get the funding to take your #startup forward?

All business entities goes through a period of cash-burning while struggling to establish.It could even take several months(or longer) to achieve break-even for many such startups.While keeping in mind these unpredictable factors, optimistic thinking for a good startup idea also require proper planning for the next level of investment ,right from the beginning. Because there shouldn’t be a gap period waiting for funding to take place and proper progress should ideally happen seamlessly.

Once when awareness is created for a particular product or service through test marketing after the initial incubation of the idea (and assuming that this is going to be acceptable, well that is a different subject itself) the customers won’t like to wait for too long for the product to be delivered/service to be provided. This delay in delivering actually could happen if proper funding is not made available through planning in advance.So this aspect becomes important from the point of view of also maintaining the continuity and reputation in terms of timely deliveries if the scale of operation needs to be enhanced if the idea picks up very well.

So we need to plan in advance through a long term planning mechanism right from the beginning on how this particular systematic investments in proportion to a planned growth are to be made(once we are convinced that the idea is likely to click well) and the sources of likely funding partners also need to be identified and kept ready.

#Step by step:

To start with any idea initially we need to put own fund at first(ideally, need not be necessarily though..) so that we could generate more confidence while we look for the next level of funding from other sources.One safe method in this case : I have known people who have been a bit different in their approach in this issue at this initial stage.Once they decide to come up with a startup they start planning while they are on their regular job itself.(They start incubating the idea carefully first with like minded people,After all #startups are ideally places where very passionate people join together to execute something immensely interesting and meaningful from their point of view.).But they continue working on their regular jobs and at the same time continue to develop the idea remotely for a certain period of time.

Once everything is up and ready (and they are satisfied that they have remotely managed well) they jump out and join the bandwagon of startup enthusiasts (once they are more sure that they can invest more and bring in more investments) and bring it up further successfully.

#Bootstrapping is a way of getting it started with probably less risk if you are really convinced about your idea and extremely passionate about it (starting from scratch and building it up with minimum {outside} investment).The four relevant phases of bootstrapping being starting positively, scaling it up appropriately, optimizing as needed and validating.

#Next option..Crowd funding for taking it forward..Asking friends, family members and others who believe in the idea to pitch in with money.If the bootstrapping stage has crossed successfully with measurable results and achievable future plan for growth then all that is required is honestly convincing them to be with you with their (hard earned) money.You may like to check these links at the end after reading this article for insightful details on crowd funding(#”Crowdfunding Tricks, Quotes, Suggestions & Recommendations. What The Expert Crowdfunder Says” and “ The Only Crowdfunding Toolkit You’ll Ever Need”). “Crowdfunding isn’t about collecting money. Its about making something happen with a crowd of people who believe in something”

Instead of crowd funding ,Once we know that this idea is taking up well(provided there is enough fund to take it up to this stage) then we could go in for loans from government or even approach the angel investors with proper long term business plan.You may like to read “Things All Entrepreneurs Should Know About Angel Investors”,Please check for the link at the end after reading this article.

#We could, if things are working out well also plan for VC funds in advance and opt for startup acceleration methods to cater for a bigger market. You may like to read “How VC works from an entrepreneur’s perspective “,Please check for the link at the end.

“Venture capital is about capturing the value between the startup phase and the public company phase”.

#Other way?..If the existing customers are happy and willing to give advances or even ready to partner with us then that would be the best method to gather more funds for enhancing the operation.You may like to read more about this unique method by clicking on the link of the article given at the end(“Turn Your Customers Into Investors”)

“Regardless of the financing approach, now is the time to focus on building a community of users, fans, customers and vendors who are excited about your company”

#Challenges?: Learning to stay afloat when it is difficult to navigate through the rough waters at any point of time in this journey of #startup.Precisely this challenge also calls for a proper planning from our end to determine in advance where the fund is going to come in times of uncertainties to take it forward.”A challenge only becomes an obstacle when you bow to it”.

Thanks for reading . Please share your comments.

#About us: Our work is based on the philosophy that whatever we do should also be meaningful and adding value to not just the industry but to the society as well.We operate in the Construction&Engineering industry and happy to assist you to take your business to the next level.#startup #construction #engineering #customer support#strategy #Wehelpu2grow

: Write to us..managementconsultants@bvprgj.com or startupsupportingconsultants@bvprgj.com # Image and quotes above from googleimages . #startup #Entrepreneurship#India#business #funding#technology (#engineering)

#1.Link: “Crowdfunding Tricks, Quotes, Suggestions & Recommendations. What The Expert Crowdfunder Says”#2.

Link: “ The Only Crowdfunding Toolkit You’ll Ever Need”#3 Link: “….Things All Entrepreneurs Should Know About Angel Investors”#4.Link

: “Turn Your Customers Into Investors”#5.Link : “How VC works from an entrepreneur’s perspective #Text Copyright © 2017 by Prakashan B.V www.bvprgjconsultants.com — All Rights Reserved #Disclaimer: Any issue with any or all contents used in this post, should be directed to the author.