Which of us did not think at least once in a life about organizing our own business. Surely there are none. However, any enterprise requires financial investments, and the question of where to get money for starting a business simply baffles many.
How to find starting capital for renting office space, purchasing equipment, raw materials, paying salaries to employees and other expenses? Of course, some of these questions completely discourage the desire to engage in entrepreneurial activity.
However, the high unemployment rate and the desire to provide for their families financially at any cost again pushes people to organize their business. But, again, the question of where to get the money to start a business is of paramount importance. The situation is complicated in that most often, in addition to a business plan and bare enthusiasm, a novice entrepreneur has nothing.
Make money yourself
Of course, to the question of where to get money for starting a business, there is a simple answer: “Earn money!”
However, this is an ineffective way to solve the problem, because, for example, to save up the amount to open a small shoe repair shop, you will have to work and save for many years. And then what about the organization of a larger enterprise?
Ask for financial assistance from relatives or friends
Money for starting a small business can be borrowed from your relatives or friends. However, the problem is that not all relatives and acquaintances are wealthy people, moreover, even rich brothers and sisters will not always have free money with which they will want to part, even for a certain period of time.
Bank loan
The most common way to get money for starting a small business is to borrow it from a bank.
However, there are disadvantages here, one of which is that after a specific period of time, the loan will need to be returned with interest.
Nevertheless, this is a real way to solve the problem under consideration. You also need to take into account the second minus: you most likely will not get the money without signing a contract of pledge of the property you own.
In this case, the loan will not be considered as targeted: the fact that you spent the money on the bank will not matter.
Guarantee
If you need the amount to open a small shop and a hairdresser, then you can borrow money from the bank under the guarantee of a large reputable company that will agree to compensate for financial losses if you cannot fulfill the loan obligations. Moreover, the guarantor's authority is of priority importance - the size of the loan depends on this.
Consumer loan
You can get money for starting a business through consumer lending.
Moreover, for an individual, the procedure for its execution is more simplified than for an organization or institution. However, the future sole proprietor cannot rely on large borrowed funds, and nevertheless, this will partially solve his financial problems.
Venture Funds and Investors
Many are interested in the question of where to get money to open a business without a loan.
Alternatively, you can seek help from a venture fund that can invest money in a project if it considers it promising.However, get ready to bring strong arguments and arguments to justify the attractiveness of your business plan, since in practice venture funds are not often interested in new ideas of entrepreneurs.
However, even if luck smiled at you, and the project seemed worthwhile to the fund, you will have to be patient and wait. Fund employees must carefully prepare an information memorandum and discuss all the conditions of the investment proposal.
They also need to conduct diverse audits, based on the results of which the business plan will be adjusted, and only after that you will be able to receive financial resources for the implementation of your project.
Union of Entrepreneurs
If you need money to start a business, then you can ask for financial support from the “Opora Rossii” Union of Entrepreneurs, which, along with government agencies, provides assistance to beginning businessmen.
However, here you must remember that the chance to get investment exists only in promising areas. Those who take first place in the competitive selection will receive funding in the amount of up to 70% of the required amount for the organization of their own business. At the same time, winners have high chances to get a loan at a banking institution on favorable terms.
With comprehensive information about the competitions can be found on the Internet portal of the public organization "Support of Russia".
Private investors
Of course, you can ask for financial assistance from private investors moreover, the search for partners should be engaged not only in our country, but also abroad.
However, it is naive to believe that immediately after studying the business plan, the investor will show interest in your business idea, rather, he will be skeptical, because, apart from nothing supported by enthusiasm, you can offer him nothing, and the business plan needs in careful revision. That is why, before looking for investors, you should thoroughly work out a business plan and write a resume. You must prove to the investor that your idea of capital accumulation is not only ambitious, but also viable.
Property sale
If suddenly your relatives left you a dwelling or apartment as an inheritance, then it makes sense to sell this property, and organize your own business with the proceeds.
If you are the owner of large-sized apartments, but you don’t have the financial means to open your own business, then one of the solutions to the problem is to exchange for a smaller apartment with a surcharge.
If you don’t need to move around the city on a daily basis with your own car, you can also think about selling it and investing the money received in your own business. Yes, you will have to use public transport, but on the other hand, it’s cheaper, given the price of gasoline and the maintenance of your own vehicle.
In any case, you need to remember that this is a temporary phenomenon and after you promote your own business, you will be able to purchase a new one for yourself.
Help from the state
The state also did not stand aside and preoccupied with the question of where to get money to entrepreneurs to organize their own business. The government has prepared a number of measures aimed at the fight against unemployment and economic crisis.
How to get money for starting a business from the state? One of the main measures, of course, is the provision of subsidies for the organization of their own business for citizens who are officially recognized as unemployed. Almost everyone knows about this opportunity.
However, there are also regional cash financing programs. Thanks to state assistance, novice entrepreneurs can get discounts when buying equipment or, for example, when renting a room. It should be said about the possibility of obtaining soft loans and grants.
It should be noted that in each case the form and amount of subsidies are determined on an individual basis. In particular, if we talk about a grant for the development of a small enterprise, then its value varies from 200,000 to 300,000 rubles. And if for the metropolitan metropolis and the Moscow Region this is a small amount, then for the rest of the Russian regions it is significant.
