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Smart Ways to Raise Money for Your Small Business
- Professional business consulting services can help navigate funding challenges for small businesses.
- In India, small businesses are officially classified as Micro, Small, and Medium Enterprises (MSME).
- MSME classification is based on investment and performance, with revised limits up to ₹125 Crore investment and ₹500 Crore turnover.
- To start a business, capital is needed for initial investment and working capital to run the business daily.
- Steps to calculate the total money needed for starting a business include listing all needs, estimating costs, adding contingency funds, and revising the list.
- Funding options for small businesses include bootstrapping, bank loans, angel investors, venture capital firms, and crowdfunding.
- Government schemes like PMMY, PMEGP, NSIC, Stand-Up India, SIDBI Fund of Funds, and SISFS provide financial assistance to MSMEs in India.
- CGTMSE offers collateral-free credit up to ₹5 crore to Micro and Small Enterprises to bridge the credit gap.
- Common mistakes while taking business funding include lack of planning, poor money management, outdated methods, overspending, and ignoring market needs.
- Business consulting services and strategic planning can help small businesses use funds wisely and navigate challenges for sustainable growth.
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