How to get money to develop your own business

It is impractical to start a business with borrowed funds, it is unreasonable to take the last penny from the family. Where to get money to start a new business? Today, the state takes the side of novice entrepreneurs and offers a number of financial support tools for business.

It is believed that starting a business with borrowed funds is a mistake. A small profit of the first time will be given to the creditor, and therefore there can be no talk of the development of a startup, which is so important in the first time.

The statement is absolutely true. According to various sources, from 52 to 70% of startups are closed in the first two years of their existence, the risk increases with the use of borrowed funds. That is why banks do not lend to enterprises less than 3 years old, because it is difficult and expensive to recover funds from a bankrupt enterprise.

However, this does not mean that the situation is hopeless. In 2015, the state finally considered the economic benefits of developing small and medium-sized businesses in the country and offered a number of state support programs to small enterprises.

Where to get the money

It should be noted that financial support tools are among the smallest. Probably the earn-it-yourself principle worked! The principle for any entrepreneur is true, otherwise you should not start your own business.

Those who are just thinking about starting are offered free training programs on the basics of doing business. As a result of any such program, the future entrepreneur defends his business idea and, under the supervision of trainers, draws up a business plan. It is important! Only with a developed and calculated business plan does it make sense to contact the business support bodies.

Employment Service

If there is no money at all, and the idea is potentially profitable and has a payback period of no more than three years, you can contact the employment service, which implements a program for the development of self-employment.

Having successfully presented a business plan, a startup has the opportunity to receive a subsidy (not a loan!) Of about 65, 000 rubles for starting a business. You’ll have to report for every penny, but if you don’t have any money at all, but you need to work, it’s quite tolerable.

Business incubator

Already registered entrepreneurs of any form of ownership can apply for residency in business incubators. As a rule, such incubators are independent legal entities, but it happens that they are included in the entrepreneurship support system and are part of the development funds for small and medium-sized enterprises, as, for example, in the Altai Territory. It's comfortable.

The incubator itself does not give out money, but it owns the space that it leases to entrepreneurs on preferential terms significantly lower than the market value. In addition, the incubator’s staff must, in their responsibilities, provide comprehensive support for the startup and do everything possible to ensure that it reaches the planned indicators.

However, it all depends on the competence of the incubator employees, and, frankly, it is often lame, because few of them know something about business not in theory.

Where is the live money in the incubator? At investors. In terms of its functions, the incubator should also help attract investors to work on incubated startups. This work is time-consuming, and most importantly mentally difficult, so few people do it. Moreover, there is a common opinion among the leaders of these same hatcheries that investing in startups is evil, because any investor only wants to absorb the resident's promising idea. Where does this opinion come from? See paragraph above!

For example, the business incubator did not give birth to everything in the same Altai creative investment project, in the neighboring Novosibirsk region, things are a little better, but the most “working” incubators in Chelyabinsk and Kazan.

Grants

Grant support for business is provided by local government agencies. Most often, these functions are with the Ministries of Economics, Entrepreneurship, similar committees and departments.

It’s not easy to get a grant, besides, if you look, the circle of “happy people” is very narrow. This is due to the bone system and its hostility to outside entrepreneurs. In addition, your business idea should literally appeal to the decision maker, and this is not easy, all for the same reason as with incubators.

Grants are given to enterprises that are engaged in projects that are priority for the region, implement socially significant projects, etc. To receive a grant, you must already be an entrepreneur and provide absolutely all documents from the voluminous list, moreover, it is important to be prepared for a desk and field audit of the department, as well as invitation "to the carpet" for a conversation about the future plans of your company.

Women's Grants

This is new. The state is not ready to give a lot of money on its own, and this type of PR activity is very interesting for private companies and large banks. Therefore, it is often near-state companies and a bank under the patronage of, for example, “Pillars of Russia” or “Business Russia” that implement a training project and give a grant to the most promising students.

Such a project has already been implemented for two years, for example, by “Support of Russia”, one foreign network company and a bank. This is a project for the development of female entrepreneurship "Mom-Entrepreneur." Women with children receive free training from good business trainers and successful businessmen, present their business idea, present a project. According to the jury, the most successful project receives a grant for implementation. In 2017, the amount was 200, 000 rubles, in 2018 - 100, 000 rubles.

A number of financial support measures are represented by cluster development centers and engineering centers, however, these organizations are focused on the manufacturing business.