How to get start-up capital

Start-up capital is a key issue for business survival. For most novice businessmen, its absence automatically puts an end to business, since the fact of a lack of money raises doubts about the need to search and analyze business ideas, calculate and prescribe a business plan. Traditionally, there are several main sources of financing the start of a business, each of which has both significant advantages and disadvantages.

Instruction manual

1

It is quite possible to get start-up capital for the development of your own business. There are several ways to obtain financing and search for investors. The very first and obvious option is friends, relatives, acquaintances. These are unprofessional investors who, to the best of their financial capabilities, most often agree to provide start-up capital.

2

You can get start-up capital by issuing a cash loan at the bank. The method has long been working and known. His minus is one and quite serious. If the business does not work, then in addition to the loss, you will also receive a hanging loan, which will have to be paid in any way. Also, some banks provide an opportunity to get a loan directly to start a business. However, the need for security in the form of real estate often for beginning businessmen covers all the advantages of this product.

3

The next direction in the search for start-up capital is professional investment (venture) companies, professional (business angels) and unprofessional private investors. Moreover, the interests of a venture company are often limited to a specific narrow industry. And private investors are businessmen and top managers of companies who have accumulated some wealth and are engaged in investments in various projects at the initial stages. The search for these people depends on their own abilities and, probably, luck. In every sector of the economy, there are people with money who are not opposed to investing in a profitable project.

4

Government support structures for small businesses can also be seen as an opportunity to get start-up capital. A federal program of self-employment of the population is known, according to which every unemployed person who decides to start his own business can receive a subsidy of about 60, 000 rubles. Of course, with such an amount of money it is difficult to start a serious project, but it is quite possible to start a small business that can feed at least the entrepreneur himself.

where to get start-up capital