Chetan Kanani, Co-Founder, Alpino Health Foods
“An entrepreneur with-out funding is a musician without an instrument.” Robert A. Rice Jr. very rightly explained a vital issue through this simple collation. Money is the life jacket for any business, it quite literally keeps you afloat. The working of any mod-ern business is dependent upon its funding. It is tough times for every business, no matter which industry it belongs to. The pandemic has only spared a few businesses, that too being the ones of essential needs. People are trying very hard to make their business only just survive. The traditional businesses that were flourishing in the market for more than two to three decades are slowly succumbing in these times. These businesses would have not faced their lowest lows if they would have received good funding. Expanding could have been possible for them had they got the money they needed for their products to reach far and wide. The main problem with traditional business is that their minds are also very traditional. They work on a set pattern and fear to bring in any changes to their business working or model. Modern businesses, on the other hand, are comparatively flexible in their approach. They change their course of action ac-cording to their needs. But sadly, modern businesses are not too far behind the traditional businesses, in the loss game. Modern businesses, however, having a flexible out-look, could not be saved from the losses due to the lack of funds in their hands. The big names in modern businesses such as OYO Rooms, Zomato and Swiggy are also facing hiccups these days. These biggies who once used to dictate the market on their terms are now forced to sell away their equities. Equity financing is the process to sell away shares of stock to raise money. Investors who buy shares of a company become the shareholders of that company and can even earn investment gains if the stock price rises in value or if the company pays a dividend. Selling equity does not bring in a lot of reputation to a company. The impact these big brands had to suffer due to the pandemic that forced them to take such steps is petrifying. We can only imagine how small businesses are still holding on. Every business can expand exponentially in a short period of time once it starts getting good funding but on the contrary scenario, the consequences of the insufficiency are unimaginable.
“Every business can expand exponentially in a short period of time once it starts getting good funding but on the contrary scenario, the consequences of the insufficiency are unimaginable.”
How are FMCG Brands working in these times?
Known as the Silicon Valley of India, Bangalore only had technology-related services and businesses. But, with time, a lot of FMCG Brands started coming in, one of them was the Food Industry. With proper funding and opportunities, food brands have grown and expanded not just in India but have also stepped into the International market. When you fund a small business or a startup, you will make use of your money in the most efficient way. This is because, when a startup progresses, you will progress with it too. Having been associated with the company from their initial days will only give you a lot of profits. The culture of online business has also helped a lot of firms to grow. Getting a wider audience is the main advantage of going online. Contrary to the beliefs of traditional businesses, the modern ones are surviving a lot better be-cause of being digitally active. The delivery services that are being used to deliver the products also get recognition and monetary profits. This, therefore, results in the benefit of a lot of firms, and all the people who are associated with them. The Make-In-India campaign is also helping a lot of new brands and firms to come up to the surface to sail with the biggies in the mainstream. Through helping these businesses you are actually helping the consumers choose from a wide variety of similar products but more carefully based on the quality of the product and also their budget.
The need of the hour is to keep your business alive through some means. Funding can help it majorly as it is the backbone of the business industry. Moreover, changing the working of a company according to the demand of the times can help it a lot too.