Where can I get start-up capital to develop my business? How much initial capital is needed to open a business?

Any entrepreneur starting his journey knows that there is a whole list of different directions, the opening of which does not require large investments. However, this path takes a lot of time and effort and, moreover, is unlikely to provide you with stable, solid income. Therefore, you are unlikely to feel that the effort was worth it. This is especially true for production and stores.

Most entrepreneurs at the starting stage not only do not have the necessary amount of funds to start production, but they do not even know where they can get them. The ways to solve this fundamental issue are different and depend on your resourcefulness.

However, there are three, time-tested and proven by many entrepreneurs, ways to find the necessary capital.

Those who are ready to make the necessary financial impact are investment funds. But you can only interest them in a promising business. The requested amount will be issued in relation to the activities and sizes that are indicated in the business plan, previously approved.

Such collective investments have a dual character. A positive aspect with this type of project sponsorship is the presence of an experienced person who is also interested in the development of the activity.

By attracting professional investors, a businessman can get a balanced assessment of his future business. Plus, experts will help improve the direction of the idea that the entrepreneur proposes, making some amendments and increasing the effectiveness of the plan.

But in all options there are negative aspects. In such cooperation, among the disadvantages are the following:

investment companies will not offer money for a project just like that; you will need to agree on a certain percentage of the proceeds, which you will pay them throughout the life of the business. Thus, having returned in full the capital spent at the initial stage, the businessman will continue to need to feed the “creator”.

The current banking system is not very interested in tying own activities with new businessmen. What is the reason for this? This is because such beginners do not have documented evidence of skills and abilities. The only reason they can provide to the bank is just the desire for easy money. This means that the possibility of “burning out” is quite high.

In this regard, the banker considers such loans only under certain conditions.

Requirements for an entrepreneur who has made a loan request:

First of all, there is a list of points that an individual must comply with:

the borrower must be a resident of the country;
the entrepreneur must have experience working in the field of organizations or in a niche that has a close connection with the currently chosen direction;
no criminal record or any suspicion of fraud;
credit history individual must be flawless.

A borrower who wishes to receive financial support from a bank is required to have a complete package of documents requested by this institution.
A novice businessman can confirm his competence with the help of a detailed business plan.

What areas must be considered in it?

exact amount Money required to enter the market;
gradual development of the case;
expenses associated with business;
depreciation;
calculations to calculate potential income, as well as identifying opportunities for future development of the enterprise.

Since no loan is complete without its collateral, the bank will never offer a client finance without collateral.

This means that it will not be possible to obtain the required amount, the size of which exceeds the average loan, without the procedure of mortgaging the property. Its cost must be more than twice the requested loan.

Subsequently, this loan will be prohibited. This is done in order to avoid the borrower from reselling the collateral.

*One of the obvious disadvantages of the loan is the extremely inflated interest rate. Because of it, such a procedure becomes not a help, but a tedious and time-consuming return of borrowed money.

State support

Among the possible sources of obtaining initial capital, government subsidies can be identified as the most optimal and gentle. Such provision of the required amount of money is made with the aim of providing assistance to unemployed citizens by involving them in their own business.

Thus, if you find yourself without work and have been registered with the employment center for more than a year, you have the opportunity to demand the full amount due in one payment state aid within a month from the date of submitting such a request.

It should be taken into account that this option is valid only if during the year the unemployed person has not been offered vacancies suitable for his specialization.

Since the amount of money issued by the government does not need to be returned, it can safely be called “easy pickings.” So, you can start production at your own expense, without making monthly payments to the investor or to repay the loan.

But there is also a pitfall here. Typically, such subsidies do not exceed state standard, and this is no more than fifty-nine thousand rubles.

This significantly limits the entrepreneur’s capabilities, narrowing the scope of possible activities. Here we can hardly talk about the implementation of a grandiose plan, but still do not underestimate similar look investment. After all, there are many famous people who made a fortune without having huge amounts of money, but having an interesting idea. The main thing is desire and, of course, enthusiasm; only with their help can you achieve heights and success.

Watch also the video about where to get it start-up capital

Start a business from scratch in crisis year- difficult task. But if you take the matter seriously and calculate everything, then any one can become an excellent source of income. Are you stopped by a lack of money or don't know where to start your business? We will tell you how to open your business from scratch in small town in 2017, even without initial capital.

Need an idea

First you need to decide on an idea. It is not necessary to come up with something unusual or complex from scratch. Let the business be connected, for example, with your hobby. You shouldn't work on cars if you don't understand anything about them. Think about what will be closer and clearer to you. You can connect your business with professional activity. Then your knowledge and experience will help you implement the plan.

You shouldn’t expect that when you open your own business with minimal investment, you will immediately make huge profits. Entrepreneurial activity has its own laws: income directly depends on the size of the business.

Types of business:

Small businesses are entrepreneurs who are engaged in small, narrowly specialized activities. If you are planning to open a home business, then you should not expect large incomes, but the funds you will need to start will be minimal.
Big business - large production or a company that occupies its niche in the market. To create you need an impressive initial capital and knowledge in a particular area.

It is worth opting for large banks: Sberbank (credit “Trust”), VTB24,. They offer loyal lending programs. Read the terms of the loan agreement carefully: it is more profitable to take out a loan that is calculated based on the balance.

– Borrow from friends or relatives.

This is better than taking a loan from a bank, since you will not be charged interest. But it’s worth thinking carefully about the time frame within which you can repay the debt.

This is the most difficult but attractive option. The sponsor will be interested in how much and in what time frame he will earn from your idea, so you must have a clear business plan. Also pay attention to the presentation of the product or service - it should be bright and memorable to the investor

To attract investors, you must have a clear business plan.

- Sell property.

To obtain initial capital for a small business, it may be enough to sell a car or land plot. But before selling, you should weigh all the risks, since the business may go bankrupt, and you will not get the property back.

- Earn money on your own.

This option is the most difficult: the reason is low salaries, especially in the regions. Accumulating initial capital is sometimes simply unrealistic.

If you don’t have enough money and you can’t attract investors, then you should opt for a business with minimal investment. These include all small service sectors and home businesses.

At the age of 23, Nikolai Emelianenko is already the owner of a small coffee shop “Black Cat” in the city of Shakhty. He created his business with virtually no initial capital. According to Nikolai, this project was inspired by his mother, who knows almost everything about coffee. The young man found a program to support young entrepreneurs, under which he received a loan of 300,000 rubles without collateral. It was possible to meet such a small amount thanks to saving money: I made the repairs myself, combined several options when purchasing furniture, bought some of the equipment, and rented some. After a few months, the coffee shop became self-sufficient.

Registering a business

Once the idea has matured and you have prepared a business plan, you can begin registering the business.

To register you need to select one of the forms:

Individual entrepreneurship () is the most simple form registration. Suitable for small or home business and is issued in 1-2 weeks.
Limited liability company () – this form of ownership is more serious. We recommend registering an LLC when organizing production or a serious company with the involvement of investors.

After submitting documents for registration of an individual entrepreneur, you will have time to resolve organizational issues: find and rent an office, purchase equipment, select, hire staff. This all takes a lot of time and effort, so you should be patient. You need to invest not only money in your business, but also personal time. This is the only way to make a good profit.

The form of ownership is indicated in the business project and is selected individually in each case.

Possible mistakes

Anyone who is not lazy and is willing to go through the process can organize a small business. long haul: from idea to implementation of the project. Not every business will immediately make a profit and grow quickly. Young entrepreneurs often make a number of mistakes:

1. Lack of a business plan.

Don't skip the business planning stage. The plan will help you control upcoming expenses and predict possible options development of your company.

2. Ineffective waste of initial capital.

It is necessary to choose a middle ground and distribute funds so that there is enough not only for the organization, but also for advertising and design of the premises. But do not forget that, for example, if you invest most money for design, you may not have enough for advertising and clients simply will not reach you.

Young entrepreneurs sometimes underestimate the role of advertising. With the help of professional promotions, your business will grow faster. Initially, it is enough to give a few advertisements to major publications in your region. We also recommend that you pay attention to - this is an excellent promotion tool. Inexpensive, but the most effective advertising- in the Internet. By paying 1-2 thousand rubles, you will cover more.

4. Profile is too wide.

If you have chosen clothing sales as your project, it will be difficult to please everyone at once. Let the niche be narrow, for example, sportswear for men. You can take wider positions only after free funds become available.

A married couple from Volgograd, Alexander and Olga Rudenky, have been doing weddings for three years. According to them, at the beginning of their journey they had little idea of this business and delved into everything through trial and error. It took Alexander and Olga some time to take their place in such a competitive niche. There were times in my work when I had to worry about the lack of orders. But success came, also thanks to perseverance and constant work.

You should not count on a quick payback for a new project. Any business, even a small one, is work. Dedicate all your time to the task and you will definitely achieve results. The prerequisites for starting your own business are initial capital, a desire to do something and interesting idea. And the correct and step-by-step organization of the project will be an excellent start on a long and winding path to success, even in a crisis.

Today, for entrepreneurs who decide to start a small business, there are several affordable and quite acceptable options for finding start-up capital:

subsidies from the state;
venture financing;
lending;
crowdfunding.

Let's consider each option separately.

State subsidies

Today there are government programs, which provide start-up capital for small entrepreneurs. For example, you can contact the employment center for financial assistance for opening an individual entrepreneur.

What is required to receive start-up capital from the labor exchange? You must be registered as unemployed for at least a month.

In addition, you need to seek advice from a labor exchange specialist who will provide a list necessary documents. You will also need to prepare detailed business plan. The advantage of this method of getting money to open a small business is that funds from the state are issued free of charge. However, in return, you will have to provide full reporting of all expenses for starting your business.

Another way is to receive a subsidy from the Department of Science, industrial policy and entrepreneurship. Those entrepreneurs who already have a developed project, but due to lack of funds, it is not developing, can count on start-up capital. Businessmen are offered to go through a certain competition, according to the results of which the winner will receive a subsidy in the form of monetary reward. The advantage of this method is that even if you don’t win the competition, you can still show yourself to investors and establish the necessary connections.

As a rule, assistance from the state is provided free of charge.

Search for investors

One of available ways Obtaining start-up capital for development is considered to be attracting venture investors.

What is the essence of this method of financing? An entrepreneur can count on receiving start-up capital in a situation where a venture investor considers his project successful and promising. At the same time, a businessman who gives money to a small business receives the following rights:

make a profit within 3-5 years;
control the affairs of the organization in which he has invested money;
take part in management issues.

After the entrepreneur who issued the start-up funds receives the planned income, he can resell his share to another investor or company owner.

In order to attract a venture investor, you need to seek help from special investment funds, government agencies or large companies.

A significant advantage of obtaining start-up capital in this way is that you can take a large amount of money for development. However, in this case you will have to give up part of your own company in exchange for financial assistance. This is the only drawback.

Another way to attract investors in order to obtain start-up capital to open a business is independent search. To do this, you will need to attend exhibitions and presentations on relevant business topics. This method less effective than venture investment, since the chance of being noticed at exhibitions is much lower.

Lending

Today, any entrepreneur can borrow money from a bank to develop a small business. However, obtaining capital in this way is quite difficult. Firstly, banks are reluctant to lend to start-up entrepreneurs. For the most part, loans are issued to businessmen who require funds to develop an existing business.

Secondly, interest rate quite high.

You can also take consumer loan, however, the average rate in this case will be, on average, no less than 26% per annum.

A significant disadvantage of receiving such capital is that if your business stops making a profit and “goes bust,” you will still have to return the funds you took for your own business to the bank.

Crowdfunding

Not so long ago another one appeared in our country effective method Taking money to start a business is crowdfunding (from English - crowd funding).

To receive starting funds in this way, you will need to register on one of the following platforms:

planeta.ru,
boomstarter.ru,
crowdsourcing.ru.

Next, you need to create file and video documents with detailed information about your business idea. The presentation should be interesting and at the same time informative. Don't forget to indicate the necessary capital to develop your business. The more interesting your video is, the more people You will be able to attract as investors.

Along with finding funds, you can promote your project in in social networks using SMM.

Don't forget about the reward. If you, for example, open your own confectionery shop, you can make sweet gifts to investors. If you are developing your own application for mobile phones, the reward may be free access to it.

I wrote that one of the key stages is finding sources of financing. In other words, a new entrepreneur must know where to get start-up capital to start a business. In today’s information, I will consider all possible sources of obtaining start-up capital, and note their main positive and negative aspects.

All these methods can be summarized into only 4 options:

Use your own start-up capital;
Borrow money from friends or relatives;
Find an investor or partner;
Take a loan from a bank.

These options can be used individually or combined in every possible way. Now let's take a closer look at each of them.

Starting capital – own funds.

Create start-up capital exclusively from own funds– the best option for starting a business, which has a number of advantages over other methods:

There is no need to think about where to get start-up capital - you already have it;
You will not have any debts or obligations, which is very important for maintaining a stable financial condition;
You get the starting capital absolutely free, you don’t have to pay any interest for it;
You will not depend on business partners and will be able to make all decisions completely independently;
You don't have to share your profits with anyone.

If you do not have enough money to create start-up capital, you can consider options for selling some not very necessary property, of course, so that this is agreed upon with other family members and is a thoughtful and balanced decision. In addition, you can think about: such options always exist, you just need to deal with them.

If it allows you to start a business with minimal financial investments, take advantage of this, which will allow you to insure yourself against large losses in case something goes wrong.

If the starting capital is your personal finances, this option can be called ideal. Even despite the fact that there is always a risk of losing your investments: risking your own money is better than risking other people’s, where in case of failure you will also acquire debts that it is not clear how you will have to repay.

Start-up capital – loans from friends, acquaintances, relatives or other people.

The second way to get start-up capital for a business is to borrow money from other people. But here many additional problems already arise.

First of all, the issue of lending money to each other is quite complex. Loan relationships can completely destroy interpersonal relationships and cause serious conflicts. Therefore, if you decide to borrow starting capital from relatives or friends, I advise you to adhere to the following rules:

1. Draw up a formal loan agreement or at least write a promissory note in which you clearly indicate when and how much you undertake to repay, as well as all other terms of the transaction. In the future, it will be possible to keep records of returned amounts here (if the debt is paid in installments) with the signatures of the giving and receiving parties.

2. Borrow money at interest. It is clear that it is more profitable for you to use other people’s money “for free,” but put yourself in the place of the person who lends it to you. While you make money from his money, if he lends you “just like that,” he will lose it: the amount will be eaten up by inflation. Think about the fact that your friend or relative could, instead of lending you money, simply make a deposit in a bank and receive interest, and such an investment would be much less risky on his part. Therefore, at a minimum, compensate him for the loan at least at the level of the deposit rate.

3. Strictly comply with return obligations. Strictly adhere to your obligations, as if you borrowed money not from a friend, but from a bank. Payment discipline will characterize you in the eyes of your loved ones, and your future relationships may greatly depend on it.

If you, thinking about where to get start-up capital for a business, are inclined towards the option of private loans, then this does not have to be from relatives or friends. For example, this could be an acquaintance of someone close to you, with whom he will introduce you. But such people will already want a much higher payment for their financial resources than their relatives.

Moreover, when borrowing money from stranger, especially if it is someone completely unfamiliar (for example, from an advertisement), there is always a risk of contacting criminals, who will then “put it on the counter,” and very serious problems can arise, even threatening life and health.

If you decide to borrow start-up capital for a business from other people, then formalize the loan relationship according to all the rules, borrow money at interest (even from relatives) and strictly fulfill your obligations. Beware of loans from complete strangers or dubious people and strive to ensure that the loan relationship does not become a reason for breaking off another relationship with a loved one.

Start-up capital from an investor or partner.

The third way to get start-up capital is to find an investor or business partner. Judging by how many people are engaged in such searches, this option is quite popular. There are several important differences between a relationship with an investor or partner and a private loan relationship:

The lender needs to pay interest, but the investor or partner does not.
If your business fails, you will have to repay the loan, but you will not have to return the investment.
When borrowing, you will not need to share profits with the person who borrowed, but when investing or partnering, you will need to do so for life, and the share that you will give away is usually very large.

Relationships with an investor or business partner also need to be formalized in an agreement, and in this case it will be more complicated, since it must include much more nuances than a loan agreement.

So, if you, thinking about where to get start-up capital for a business, have settled on the option of finding an investor or partner, the second question arises: where to find them? There are several search options to consider:

1. Among friends and relatives. Just as close and acquaintances can lend you money, they can also take part in your business as an investor or partner (depending on what suits you and them best).

2. In the Internet. You can search for investors on specialized websites and forums about business. Spread the word online about where you are from, what kind of business you want to open (in short, without revealing key points), and who you are looking for: investors or partners. For this purpose, you can also use numerous business communities on social networks: personally, I constantly see many such advertisements there.

You should understand that there is more demand for investments than their supply, so you need to try to make your topic stand out from the others posted there.

3. Business angels. There are so-called investors who themselves are looking for a business that they would like and be able to finance. Business angels have entire communities and associations that are easy to find using the search. It is possible that if your business idea is really interesting, you will be able to receive start-up capital from a business angel.

Investments can be attracted not only in monetary form, but also, for example, in property. For example, another businessman may provide you with his premises to conduct business for a certain share in it. Or it could be a trade loan, free receipt of goods for sale, and a host of other ways of partnership without direct monetary participation. Be sure to consider these options as well.

As in the case of a loan, you should behave as honestly as possible with an investor or partner (while demanding the same reciprocity from your counterparty), because a reputation damaged even by negligence can seriously damage your future business.

If you agree to share profits from a future business with someone else, you can consider partnering or finding an investor. The advantage of this method of forming start-up capital is that you will not need to pay for it until the business is profitable, and give it back if the business falls apart.

Loan for start-up capital.

And the last option that I want to consider is to take out a loan for start-up capital from a bank. The latter, because it will not be so easy to use.

First of all, because banks practically do not give loans against start-up capital if the borrower does not have other sources of income that allow them to repay it. That is, the “I’ll earn and pay” option will not work here. Any require a rather complicated procedure for obtaining.

Therefore, quite often people who want to get start-up capital take all kinds of capital, which are much easier to obtain, but which, at the same time, are significantly more expensive. The total price of such loans often reaches 100 percent or more per annum, and what business can ensure the ability to pay such interest?

The next disadvantage of this method of obtaining start-up capital is the need to pay interest and, most likely, to repay the loan itself monthly, from the first month of using it, while the business may not even be opened yet, and, moreover, will not produce a profit.

Further, if we are talking about a large sum, then you will need collateral, such as personal property. Firstly, this is associated with additional costs for the assessment and registration of collateral (mortgage), and secondly, you need to think about what will happen if your business fails and you cannot repay the loan. Lose your apartment? Not an option…

Getting a loan for start-up capital for a business is a rather risky option. I would recommend using it only if you have an existing source of income that will easily allow you to repay this loan, even if the business you have started turns out to be unprofitable. Or you risk getting caught and losing the mortgaged property.

Now you know where to get start-up capital for your business. All these options can be considered individually or in certain combinations. Summarize.

The best and less secure option is to open a business using your own funds. When using loans, you will have to pay them back, and you risk going into debt if the business does not develop as you hoped. At the same time, it is financially more profitable to borrow money from loved ones than from a bank, but, on the other hand, you risk ruining your personal relationship with them. If you decide to attract a partner or investor to create start-up capital, you will have to further share the profits from the business with him, and the relationship between the partners may also deteriorate, which will lead to additional difficulties.

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