Where to get money for business from scratch?

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2020-07-02 23:25:18

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When the mind has matured a great business idea and you want to implement it, there is a problem – where can I get money for a business? The complexities of financing a new project every second was facing a budding entrepreneur. That is why many give up on their business, not even having time to start one. Although the options for investment are many.

analysis of business project

Signs of a successful business

Before you wonder where to take money for the business, we must first answer another – and whether to look for them. Yes, own business allows you to enjoy your job, and depend on superiors. But only 15% business ideas become successful. Therefore, before you seriously engage in the implementation of your own project, you need to evaluate the risks.

Signs of a successful business:

  • Relevance. The thing that is worth investing in, should be in demand in the market. And you should not rely on your own opinion. Need to study the niche the business will occupy the market, and to determine the approximate coverage of the target audience.
  • Novelty. New projects need to be extremely careful. Some are able “blow” market, others – to bury invested time and money.
  • Ease of implementation. If the business idea requires a complex organizational stage and huge investments, the chance to find out where to get the money to start a business, be reduced to zero. The faster investment begins to pay off, the more attractive the project looks in the eyes of investors.
  • Reliability. When profit is based on outright fraud or the trash, not even worth trying to look for sponsors. Problems with buyers, and especially with the law is not needed any decent investor.
developing business ideas

Preparation for fundraising

Before looking for where to take money for business, you need to understand that people are willing to invest in the idea must be fully confident in the seriousness of your intentions. So without training to raise funds can not do.

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The First thing you need to do – to make a business plan. A business plan is needed not only to investors but also to the entrepreneur. Sometimes an idea that is ripe in the head, seems to be just perfect. But after careful analysis and systematization of all data received on paper, the future of business doesn't seem so promising. Therefore, investors considering the offer, will be guided only by figures.

development business plan

The Second – you need to learn to bring the idea to an investor. Numbers – is good, but business acumen of the entrepreneur is much more important. So thinking where to get money for business, you need to be ready to defend your project and communicate its prospects to the audience.

Finally – all the things that don't relate to your business, you need to set aside. All the time, attention and energy should be directed only to the realization of their ideas. After all, to find out where to get the money for business from scratch is not so easy. But numerous attempts will result, if to devote himself entirely to the intended target.

Sources of funding

It is Conditionally possible to divide all funding sources into two groups: native and borrowed. Of course, in the organization of own business it is better to make maximum use of its own resources. However, when they become not enough, do not be afraid to attract funds from outside. Especially if you have full confidence in the profitability of the idea.

Own resources:

  • Savings;
  • Sell assets;
  • Diversification of assets.

Attracted by the sources:

  • Bank loans;
  • Sponsorship of the investment;
  • Government grants.
transaction

To determine the source of funding, you need to read them in more detail. To collect the full amount of original capital entrepreneurs often combine several financial resources. But better still, when the majority belongs to the owner.

Accumulated earnings

To Save money not the fastest way to Finance a business idea, especially if the wage is less than the national average. But often a person has his or her own savings, savings accounts in banks or passive income, such as renting apartments, which can be directed in the right direction.

If there is a real opportunity to earn a starting capital and support the business until then, until it will reach self-sufficiency, it is best to use this method of financing. Because it almost completely eliminates the risk of get caught up in debt.

Selling property

Apartment, expensive car and other property – it's a potential source of private funding. And the money from the sale can be obtained fairly quickly, rejecting the thought about where to get money for business without a loan.

But if the apartment, house or other dwelling is the only residence, then sell it, of course, not worth it. The risk of “burn” exists inthe implementation of any business project, so you should not invest in it the only roof over my head.

savings to start a business

Diversification of the capital

The term "diversification" refers to the reallocation of capital from one sphere of activity to another. System management of financial flows is a complicated process that requires a serious approach. This method of financing is suitable for those who have already invested money in a business that did not bring the expected results.

So instead of waiting until the first company “will drop” finally, the money invested in it can be used to Finance more promising projects. However, in this case the risk of losing is doubled. Therefore, before the diversification of capital you should consider. It may be more appropriate to find out where to get the money for the development of small businesses which already entered the market.

work on the business project

Bank loans

Banks – investors No. 1 participating in the financing of legal entities. However, according to statistics, is approved for only 5 % of applications for loans to start a business. Banks are more loyal to existing organizations, which operate more than 3 months.

To obtain credit, you must:

  • To Prepare a business plan.
  • Register IP, LLC and others
  • Open a Bank account.
  • To register with the tax authorities.
  • Make a corporate seal.
  • Apply for a loan with the prepared package of documents.

This method is ideal for those looking for where to take money for business development. But the chances for the “newbies” too. Main – to develop a detailed business plan and convince the Bank staff in the reliability of the attachment. When calculating the amount of the loan you also need to remember that money need not only for business but also prior to receipt of the first profit.

proposal for investors

Sponsorship attachments

The investment can be both physical and legal persons. The goal that they pursue – to make a profit from your investments. Therefore, it is necessary to be ready, if before entering into the transaction the investor will require up to 90% of the net income of the company.

When considering an investment project, the investors rely on the business plan, the level of demand, the market situation and his own impressions of ideas. Experienced entrepreneurs can identify promising project obviously unprofitable. So many failures – this is the direct reason to think.

Today, to find out where to get the money for a small business, simply. There are many international business portals and websites to attract venture capital investment and other online sites, providing the opportunity to bring his idea to the stakeholders and obtain initial capital. For example, using one of these services was born the first school of cybersport in Belarus.

Government grants

Any state interested in small business development, because he – the Foundation of the economy. Therefore, there are government programs to subsidize small and medium business. And the expense budget, you can learn the basics of private entrepreneurship that will allow us to independently develop a business plan, without engaging third-party experts.

To receive a state subsidy, must be officially an unemployed citizen. For this you need to contact the Employment Centre with the application for registration. Further, when dealing with the employee have to declare their intentions to open a private business.

If the Commission before which you need to protect your business idea, make a positive decision, then a budding entrepreneur can count on state support in the amount of 60 000 rubles. This amount is unlikely to cover the costs of a really big project. But if the money you can get for free, they should not be neglected. The main thing is not to forget that three months after receiving the grant must report detail about its intended use.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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