Start-up funding to mentorship: 7 ways to starting a small business

Summary: Incubation, mentoring, tech platforms and business advisories are a few ways modern banks are going beyond Start-up funding and offering holistic support to Start-ups.

14 Aug 2023 by Team FinFIRST

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From an idea to becoming India's next unicorn, starting a small business can be exciting and also challenging. The Indian Start-up ecosystem has received valued support in the last few years beyond Start-up funding.

The Government has established business enterprises, and investors have played their part in building this ecosystem. They have provided timely guidance, professional incubation and mentoring, and Start-up funding - crucial elements in nurturing promising Start-ups.

Although angel investors and financial institutions have been at the forefront of offering Start-up funding, several opportunities still need to be explored.

IDFC FIRST Bank observed this gap and developed its unique FIRST WINGS program to address it. In FIRST WINGS, Start-up founders get customised products and solutions addressing many of their early and growth-stage Start-up funding/support needs.

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Let us take a closer look at various ways banks can assist Start-ups in finding viable solutions and kickstarting their entrepreneurial journey.

7 Ways banks help when starting a small business

Business advisory services

Banks can engage expert advisors to guide Start-ups. They can advise young entrepreneurs of various ways to get Start-up funding. These can include meeting taxation and compliance requirements, managing cash, exploring overseas markets, utilising foreign exchange services, managing debts and assets, source and manage the workforce, overcome communication and remittance challenges, etc. Expertise in such crucial areas can assure Start-up founders of their business' sustainability while giving them a clear vision for the future.

Beyond Banking Partners of IDFC FIRST Bank offer business incorporation support and DPIIT registration to get a government-recognised Start-up. The program also provides easy invoicing and bookkeeping tools with discounted legal services.
Incubation facilities

Start-up founders generally need to become more accustomed to the challenges they would face on their journey. They may need more expertise in various fields of a business venture, such as marketing, technology, brand building, etc. Banks can provide incubation facilities to ensure a more wholesome nurturing of the Start-up. Such support can go a long way in business development.

Just as a newborn requires constant supervision and parental care during the growing stage, starting a small business needs constant support, good guidance and a chaos-free vision during its foundational period.

Incubation helps them with a proper business plan, marketing strategy to attract customers, guidance of business laws, exploring options for Start-up funding, etc. Incubation facilities may also include providing physical resources such as space for offices, equipment and help with accounting and computing.
Technology support

Digitalisation in banking means that banks can now offer digital platforms to support various customer needs. For example, the FIRST WINGS program simplifies Start-up banking needs with various new-age solutions. All business management activities can be driven through the all-in-one mobile app that accommodates multiple net banking accounts on a single intuitive dashboard.

You can carry out zero-cost bulk payments, manage your accounts payable, and receivable activities through the mobile app. You can integrate your Start-up’s human resource management system into the banking platform and get all payroll processes routed through it. Collection channels are streamlined in the FIRST WINGS program, with instant QR code, digital POS onboarding and more.
Networking opportunities

Various reasons make networking necessary for Start-ups, and most importantly, the Start-ups' constant need to find investors. Banks can support them by building a network with India's top investors and business founders. Banks can set up partnerships utilising their vast networks, thereby helping budding entrepreneurs get Start-up funding.

Through the FIRST WINGS program, IDFC FIRST Bank connects Start-ups with India’s top unicorn entrepreneurs and investors who offer Start-up funding and mentoring. The bank also ensures media coverage for emerging Start-ups and recognises them regularly in the bank’s “Top 100 Start-ups to watch out for” report.
Government schemes

The Government has announced several Start-up funding schemes and policies to help budding businesses. These schemes aid in innovation, infrastructure, recruitment, etc. Examples include the Credit Guarantee Scheme, Stand up India, PM Mudra Yojana, Market Development Assistance, etc. Designated banks act as intermediaries to cascade the benefits of these Start-up funding schemes among entrepreneurs.

IDFC FIRST Bank Start-up account holders can mail or call the bank at 186-025- 2000 for information on the emergency credit line for MSME and business enterprises, including loans offered for Start-up funding under PM Mudra Yojana.
Mentorship programs

A Start-up mentor is a professional who has gathered experience and knowledge in setting up a new business and running it successfully and shares this wisdom diligently. Banks are providing various mentorship programs with professional sessions to guide young entrepreneurs. Activities other than Start-up funding ideas include mock business situations to test their business prospects and sustainability.

With the ”Leap To Unicorn” program, you can attend curated boot camps and mentoring sessions by industry experts. Such mentorship programs can teach them to be patient and motivated during the initial struggle of their business.

The knowledge imparted by these mentors will help source answers to many puzzling situations that an entrepreneur may face at the start of their business.
Customised financial solutions

Banks are adept at supporting customers with various financial solutions. Apart from providing networking, mentoring, and fundraising opportunities, IDFC FIRST Bank Start-up Banking solutions include convenient banking services, credit cards with step-up credit, top-of-the-line debit cards, and hassle-free trade and forex solutions.

From mentorship to unicorn- How IDFC FIRST Bank can help

IDFC FIRST Bank is committed to assisting Start-up account holders in taking the next big step – the leap to becoming a unicorn. But that should not be the only aim. It is more important to get your feet off the ground with industry experts who will teach you the ropes of the industry.

In association with Moneycontrol and CNBC-TV18, IDFC FIRST Bank has created a one-of-its-kind founder success program, Leap to Unicorn. The bank meticulously plans the business journey of promising Start-up participants, providing mentorship, networking, and fundraising opportunities.

Under the FIRST WINGS program, IDFC FIRST Bank Start-up account holders get a zero-balance current account with free digital transactions, unlimited doorstep banking, cloud credit of $5,000 for website services, and zero maintenance payment gateways, UPI/QR, and virtual accounts.

In this program, you get a business credit card that offers up to 10X reward points and can be used for your Start-up needs like a cloud service, CRM tool, analytics engine, etc. Besides, there are enhanced ATM and POS withdrawal limits on a debit card, dining and shopping offers, insurance coverage of up to Rs 1 crore and more.

For such exemplary business-focused services and solutions, choose the IDFC FIRST WINGS program for your Start-up today.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.