How To Rake Up Funds Even Before You Take The Plunge

In one of my articles, I wrote about how you can work around your business even if you have lesser funds. It is true because people have done it. But the other truth is that you will need funds if you are getting into manufacturing business. There are many types of businesses which are quite capital intensive. Even if not very capital intensive still it will need sufficient capital so as to make it big. Funds when you start up can make you advantaged or disadvantaged. 

Having sufficient funds in your account means that even if your revenues do not pick up at the start, you can still live for a few more months. This initial period is very important. We make plans considering our revenues generate from third month or sixth month depending on project. But the truth is that you might need more time. Your machine arrival might be delayed, installation might give problems and you might take quite some time to get the quality right. This period goes without or very less revenue. And if you do not have ready customers, then this gestation period is long. 

Second thing is that if you have funds in the back up, you can put it to use in such a way that your gestation period is minimized. You can have multiple people working simultaneously, so your production/sale start at the earliest. For all these things, you need to have funds. Now, how do you generate funds?

If you are from affluent family, then this is not any question for you. But if you are not well off with money then it might be beneficial for you to start saving immediately after you take up some odd job. In initial years of your professional life, you are young and single. Take that opportunity and set aside as much money as is possible and invest it. Since age is on your side, I recommend investing in Equity Mutual Funds which are quite aggressive and will give you good returns. This compounded return will turn big in 4-6 years time when you will be ready to leave your job and start your dream project. 

Agreed that this might not be the case with all, but if you invest money in aggressive funds, they it will increase. When you invest before spending, then you have less money to spend and this will keep you disciplined. Whatever increments come, try to move all or at least 75 % of the increment in investments. This will not only build your corpus fast, but also keep your lifestyle down. This might help you in initial stages of your project.