Business Finance Strategies for Millennial Entrepreneurs
The Millennial generation in India are increasingly getting into entrepreneurship in India. The penchant to do business for the millennials being on the rise is good for the developing Indian economy. However, one of the biggest challenges faced by Millennial backed businesses is securing necessary business loan. Through this article we will look at different tips, importance and strategies exclusive for millennial entrepreneurs in India.
Tips to Start a Business
Before we look into the financial aspects, let’s look at some basic tips to start your entrepreneurial journey as a millennial msme business owner :
- Choose Business Ideas based on Interests: Choose a business idea that is sustainable for you in the long run, if the idea and process is something you are passionate about, you would enjoy running your business every single day and this will compound to the success of your business. If you just look at investment against returns point of view instead you may end up doing a business and eventually you could lose interest.
- Conduct Thorough Market Research: With availability of internet, smart phones etc in finger tips along with latest tech like gemini, chatgpt and other ai tools doing research about target market is easier than ever. Utilize these free mediums to gather as much data as possible.
- Create a Comprehensive Business Plan: Creating a road-map from scratch will help you stay aligned on your original plans, this will give you high level visibility on potential hurdles, threats and even opportunities. This will also help you remain organised and having a process which you can follow.
- Build a Strong Network: It goes without saying that for anyone to be successful in business connections are important. Being backed by people is as important as technology and funding. People impact is very powerful and having the right contacts will help you in moving your business growth steps much faster. Involve in conversations both offline and online to help build connects within and outside your sector. You will never know which type of connections could help you in different phases of the business journey.
- Embrace Technology: Leverage technology to streamline operations, improve efficiency, and reach a wider audience. Use paid ads tools like Facebook ads, Google Ads, SEO, AI tools, Email marketing, whatsapp marketing etc along with organic marketing through social media channels like reels, youtube shorts, UGC’s and more.
Importance of Starting a Business
Starting a business offers numerous advantages for millennials:
- Financial Independence:This is one of the mainstream motivations for most millennial business owners. Staying away from a typical 9-5 job is what many dream of and if executed well could be moving forward as per expectations.
- Flexibility: In an era where work from home has become the norm, owning a business gives even more flexibility as you get to choose your schedule of work. And being business owner you will have more free time if you have proper process in place and POCs to handle different operations.
- Personal Fulfillment: Building a profitable business can be incredibly rewarding and satisfying.
- Innovation: New ideas and thoughts emerge via entrepreneurship
- Job Creation: Job creation in the market benefits individuals and to the growth of the state, country etc, one gets to play a role in that by starting a business.
Business Finance Strategies
Now, let’s explore key financial strategies for millennial entrepreneurs:
- Bootstrap Financing:
- Self-Funding: Utilize your personal savings or funds from family and friends to start your business. Be aware that this also lead to ruining your healthy personal relationships.
- Part-Time Income: Maintain a part-time job to generate additional income for your venture.
- Selling Personal Assets: Consider selling unnecessary assets to raise capital.
- Government Schemes and Subsidies:
- MUDRA Loans: The Micro Units Development and Refinance Agency (MUDRA) offers loans to micro, small, and medium enterprises.
- Startup India Initiative: This government program provides various benefits, including tax exemptions and funding support.
- State-Specific Schemes: Many states offer incentives and subsidies for startups and SMEs.
- Bank Loans:
- Term Loans: Traditional loans with fixed repayment terms.
- Working Capital Loans: Short-term MSME loan to manage day-to-day expenses.
- Overdraft Facility: A flexible credit facility to meet short-term cash flow needs.
- Angel Investors and Venture Capital:
- Angel Investors: High-net-worth individuals who invest in early-stage startups.
- Venture Capital Firms: Professional investors who provide funding to high-growth potential businesses.
- Crowdfunding:
- Equity Crowdfunding: Raise funds by selling ownership shares in your company.
- Reward-Based Crowdfunding: Offer rewards or perks to backers in exchange for their contributions.
- Financial Management Tips:
- Create a Budget: Develop a detailed budget to track income and expenses.
- Monitor Cash Flow: Monitor your cash flow to ensure you have enough funds to meet your obligations.This can also be automated by having a proper system in place.
- Invest in Tools: Use automation tech like software and excel automation scripts to automate financial tasks and generate accurate reports. This can reduce the manual effort needed from you/your employees on a day to day basis.
- Seek Professional Advice: Make sure the decisions involving money transactions are consulted from a qualified accountant or a chartered accountant for better efficiency.
Conclusion
The millennial entrepreneurs in India have the chance to add up to India’s growth at scale and provide new solutions by solving problems with their business based solutions. If they are in the MSME sector there are many NBFCs ready to fund them with the latest tech and support. The government also has schemes to support them. Having the opportunity before them, Millennials can elevate their business desires easily in today’s economy.