funding, financing, indiaMe and my friend have a plan to start an business soon in a FMCG category, But we dont have any financial aids for it, our family background also not willing to give financial support to us, if we wanted to get financial help from bank means, im not sure whether they belive us. So what are the ways that we can get financial help or support other than by our relatives/ bank.
My friend has some sound experience on the business and product of it.
FMCG can be very rewarding, but it’s also a punishing environment. There are two main entry routes, where you don’t bring funding with you.
The first is to persuade a supermarket chain to place a significant initial order. The signed order is what you use to borrow money to fulfil it. This is classic bootstrapping, but it’s harder and harder to achieve unless you have a superstar team or some very attractive IP.
The second is to start small. Raise enough capital (from yourselves and your income, most likely) to be able to manufacture small batches yourself or via a contract manufacturer, and hit the real and virtual road, selling direct to independent stores and online. As you build a customer base and evidence of repeat orders, you will start to look like a good risk to an investor or to a bank.
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