Where to Find or Earn Startup Capital for Small Businesses
Opening a business, not depending on the employer and fulfilling old dreams - this is how many people imagine business. But the beginning of the activity is faced with obstacles. And the first is where to find funds to start a business. We will select sources of funding, and for the development of an existing business.
Money for small business - how much you need
The decisive stage is the initial capital. To understand how much money is required, first take into account the mandatory costs and investments.
What money is required for when opening a business:
- funds for legal registration of an entrepreneur or organization (registration with the Federal Tax Service, accounts);
- obtaining documentation (for a mini-bakery, you will need sanitary books, technical specifications, permits from SES and other authorities);
- rent or purchase of a place for business, opening an online store.
- purchase of a franchise;
- salary for the first months. When an individual entrepreneur plans to work alone, funds for personal needs are included;
- equipment, transport is an expensive part;
- purchase of raw materials or goods for resale;
When the type of activity is undecided, ideas for small business are on the site. Explore profitable ones, choose a niche, and more easily identify opportunities.
We are looking for start-up capital for business
- Personal savings. Do not depend on loans, there is no need to return investments with interest - the profit is yours.
- Government assistance for small businesses. It is now possible to receive a gratuitous subsidy.
- Borrowed funds and investments. Contact your bank or investors. And start the business without delay, but you will have to share the profit with the “assistants”.
There are many ways to obtain the required amounts. Let's talk about each in more detail.
Money for business development from own capital
It's good when an entrepreneur has the required amount. Pros:
- You risk your personal money - when the idea does not give the expected income, there will be no debts.
- Do not report to banks or government agencies.
- Do not share profits with investors - spend on business or other purposes.
- Hobby becomes business. They gain experience, clientele, orders and are "officially" launched.
- When a future entrepreneur works as hired personnel and wants to start a business in this area, then there is no point in quitting. It is more profitable to accumulate the necessary amount when you work in parallel "for yourself".
- Investments are not in cash - the use of personal transport, real estate reduces costs.
The overwhelming majority of people believe that it is not possible to start any business, your own business, without start-up capital. And only a small percentage of people who are versed in entrepreneurial activity know that even without initial investment, starting a business is more than realistic. Of course, this will require more significant effort, you will have to work tirelessly, but if you wish, anything is possible. The main business ideas that can be realized without initial capital will be discussed below.
If a person has good knowledge in any area, you can make money by providing advice to other people. You can advise people on issues related to such areas as law, accounting, finance, construction and renovation, healthy eating, etc. In principle, the provision of consulting services is possible in almost any field of activity, the main thing is that it is interesting and in demand among the population, and the person who advises is really a professional in his field. You can consult over the phone, on social networks, or during personal meetings, for example, at home. The only drawback in this work is the possible mutual distrust between the client and the consultant and the lack of guarantees of payment for services.
Simply put, an online thrift store. You can create a site for these purposes if a person can do it himself, or he has acquaintances who have the skills to create sites. If there is no way to create a website, you can sell things through social networks or online auctions.
Of course, this type of training is best suited for people with higher pedagogical education. But this is not required. Even if there is no pedagogical education, but a person is a professional in any field, he can transfer his knowledge to others, receiving payment for this.
You can teach people a variety of things - a foreign language, the art of photography or dance, singing, hairdressing, make-up, etc.
Classes can be conducted at home, as well as over the Internet, using programs such as Skype.
The field of activity here is very extensive, there is plenty to choose from. The most common options are:
- creation of a website to order (if you have knowledge and skills how to do it);
- fulfill orders for processing photos, for example, retouching, making collages, avatars , open, etc.;
- writing articles and performing other tasks for various exchanges, such as Etxt, Text. u, Advego;
- maintaining a rating blog and making money on advertising;
- maintaining various groups on certain topics in social networks, with paid content.
This is a popular type of business without much initial investment, but requires a person to possess certain skills and certain physical effort. For example, you can clean apartments or office premises, provide services such as "husband for an hour" (minor repairs in plumbing and electrical, as well as help with the housework - hang a shelf, fix a lock, move furniture, etc.). If a person has the skills to repair houses or apartments, or work on construction, such services can be provided. But it is better to do this with a partner or a team of 3-4 people, since it will be problematic to carry out many overhaul and construction work alone.
Starting a business is the best way to invest. In order to competently implement a business for 1,000,000 rubles, ideas need to be analyzed carefully, this will allow you to get a profit that is not comparable to the interest on the contribution or dividends from shares. We have selected the best business ideas that can be implemented with 1 million rubles.
Business ideas for rubles in sales
Despite enormous competition, many aspiring entrepreneurs choose business ideas in the trade. The business will be successful if you select a product that meets the needs of the client, find a profitable point of sale, do not scare away buyers with a high cost, but also do not end up at a loss.
The showroom can be used to showcase designer clothes to wholesalers or as a fashionable boutique with luxury items. In the first case, it is better to register an LLC, in the second, you can get by with the status of an individual entrepreneur.
Usually you can get to one or another showroom only by appointment or by acquaintance
At the initial stage, you can earn from a business project from 70 thousand rubles. per month, but the income is unstable. A well-known showroom in the city according to interbablo. u can count on monthly earnings of 300-500 thousand rubles.
Showroom owners independently purchase clothes from abroad or from well-known Russian fashion designers. You need to select clothes for which you can make the maximum markup. These must be expensive and stylish things (sometimes in a single copy) not for a mass buyer.
How to open a showroom, tell here:
Children's store opening
Children's products are in demand even during the crisis, and the markup for them is higher than for products for adults. You need to decide on the assortment: you can offer customers only everyday goods (baby food, diapers, baby cosmetics) or open a department store (clothes, strollers, toys). You will need permission to wholesale and sell food.
Own business is the dream of every aspiring entrepreneur. There are many obstacles on the way to starting your own business. The main one is money. Not everyone has start-up capital for small businesses. This stops entrepreneurs. However, finding money to start is not that difficult. Besides, there are types of businesses that do not require any investment.
Sources of start-up capital for starting a business
Having your own funds for starting a business is the best option. This option takes away the hassle of finding start-up capital for the entrepreneur.
The advantages of your own investments are obvious:
- saving time - no need to negotiate with investors;
- no need to borrow money;
- less risk;
- no debt.
If the required amount is not available, but the opportunities allow you to accumulate it, this is also a good option. However, it also has a significant drawback - until the required amount is collected, the idea may become irrelevant or someone from competitors will use it.
If the entire amount is not available, and the startup already needs to be launched, you need to look for other sources of business financing.
Money raised by family and friends
Friends and relatives are the best sources for borrowing money. It is always easier to negotiate with them, they do not have to pay interest. In case of failure, the return time can be postponed to a later date.
Besides, it is always easier and more pleasant to conduct business negotiations with familiar people. They don't need to be shown a detailed business plan. They will not have to account for every penny, explaining what exactly this or that part of the funds will be spent on.
Starting your own business requires start-up capital. But what if at the moment the required amount of funds is not available? This is not at all a reason to give up the prospect of starting your own business. Moreover, there are many ways to find money to open a small company.
Get a loan
Most of the businessmen who start their business from scratch use bank lending as a source of funds to start a company. However, this source of funds is not as easy to use as it might seem at first glance.
- Firstly, Russian banks put forward rather stringent requirements to borrowers, including:
- Resident status.
- Prepare a detailed business plan.
- Ideal credit history.
- No criminal record, including those extinguished legally.
- Secondly, interest rates on bank loans are quite high and amount to about 15-20% per year.
Given the high risks of financing a new firm, many banks oblige their borrowers to provide them with collateral or surety.
At the same time, it is fashionable to issue a bank loan in just a few days, and in the amount that is necessary to create your own business.
Borrow from friends
If such a possibility exists, then this option is extremely beneficial, because:
- The interest rate will be minimal or nonexistent.
- Friends will not require an extensive package of papers, collateral or surety.
- The debt can be repaid in a single payment at the end of the term.
However, it is important to take into account some of the negative aspects of attracting a deputy through your friends: