Raising and managing funds

Moderator: Shilpi Kapoor, Barrier Break Technologies
Vineet Rai, Intellecap

Gaurav Arora, ICICI Bank

Vineet Rai :

• The first and the foremost thing is to understand your business well. Equity capital can be raised without muchefforts if you know why you need it.

• Make the business plan for yourself, not for the investors.

• Investors must decide whether they want to invest in a risky business plan which may or may not flourish later or a stable business plan to ensure steady cash flow.

• Bad investors are those who invest their money in an entrepreneur’s plan with a belief that it will definitely work wonders while a good investor would invest his money in a plan without believing in it completely but constantly keeping a check on the entrepreneur’s moves and mistakes.

• Equity investors must be able to guide the entrepreneurs to avoid them from taking the wrong steps and must keep advising them with the betterment of the plan.

• Always have patience while raising funds.

• Always study what your investors need before approaching them. For example- an equity investor will always look in for the scale of your business before investing.

Gaurav Arora:

• Every business plan starts with an  equity.

• Before approaching a bank for a loan you should know what kind of loan is required for your business plan- long term or a working capital plan.

• The bank always checks your eligibility or repayment capacity before giving you the loan.

• For a bank loan, the entrepreneur must have-

  1. KYC (know your customer)

  2. Financial history of transactions.

  3. Current standing and future of your business.

  • Bank is a platform which not only provides you with the necessary funds but also guides and advises you on managing those funds, utilising the funds properly for the business plan and putting it to the best use.

  • You need to keep your banking history systematic.

  • Raising of funds must be pre-planned.

  • You must connect with the right bank which will co-operate, manage and suit your business plan the best.

  • You must know beforehand how much funds are required for a particular scheme before actually putting the scheme in practice.

  • Your products must have extra-ordinary qualities and X-factor if you are expecting more profit than you have already gained.

  • To increase your turnover

    1. Raise capacity

    2. Increase natural progression.

    • Project finance is based on expanding your current business efficiently.

    • Collateral is required if your business turnover is beyond 1Cr.

    • You must know before starting your business what kind of funds or equity and how much is required for your business. Also, you must know why you need it and how you are going to utilise it to the fullest.

  Shilpi Kapoor :

  You must know before starting your business what kind of funds or equity and how much is required for your business. Also, you must know why you need it and how you are going to utilise it to the fullest.

- Contributed by Khushboo Verma, Tejal Naik, Kitish Kakkar

Tags: Gaurav Arora, Raising and managing funds, Shilpi Kapoor, Vineet Rai