Where to get start-up capital for a business? 4 ways to attract money!
Who would not want to become the owner of a large company? Perhaps no one would have given up such an opportunity, but the problem, as always, is one thing – finances. To want to open a business and become an entrepreneur is one thing, but being able to do it is another. Good investment requires good investment, otherwise there will be no business. Where to get start-up capital for a business will be discussed further.
First you need to decide how much money you need to implement the idea. Of course, in order to decide, there must be a specific business project. Becoming a businessman is a great dream, but it is not enough, you need specifics. Thus, before you think about where to get start-up capital for a business, you need to come up with a project for this business itself.
It is traditional to divide all companies into small, medium and large, but these groups are quite extensible, and, say, a small enterprise can cost both 30,000 rubles and 50,000 dollars. Before you begin to implement the idea, approximately evaluate how much all the equipment necessary for work, office rental, salary for employees, etc. will cost. Also take into account that the business is unlikely to be profitable in the first month, so it is recommended to have funds available that can cover at least 6 months of the company’s work.
Where to get start-up capital for a business? Real features:
Often, entrepreneurs take loans to develop their business. This is the simplest option in terms of execution, but a number of problems arise immediately.
Firstly, not everyone gives out loans, especially if you are unemployed. Whatever plans you have in your head, modern banks believe only in wage statements from the place of work.
Secondly, a loan must be given, with interest, which creates great risks for a young businessman. If his idea burns out, and this, believe me, happens quite often, then he will be in a debt hole, and it will be very difficult to get out of it.
Even if everything works out, but the profit will not be enough to pay interest, a business can fall apart just because of this. For the above reasons, loans are not very popular among entrepreneurs, and are often the last option, if it was not possible to attract start-up capital in a different way.
As a type of loan, you can allocate loans from friends and acquaintances. In this case, the conditions will be more loyal to you, and if the matter is burned out, then nothing terrible will happen. True, not everyone has friends who can lend such a decent amount.
A more acceptable option is to attract investors. An investor, unlike a creditor, does not demand money back and does not impose any liability on you. These people simply buy part of your business, become partial owners, and subsequently will receive a share in the profits. The option is very tempting, just finding an investor is not an easy task, and if it works out, then your sponsor will most likely take a decent share in the company, if not all, leaving you a nominee director.
Another option for getting start-up capital is to make money on a less ambitious project. In fact, you can open a business even without investments. Yes, at the same time you will not have employees, you will have to work at home and attract each client literally yourself, but then you will have the opportunity to earn the first money and put it into a more global project.
The same applies to those people who have an initial capital for starting a small business, but they want to become owners of a medium or large company. Start small, earn money, gain experience, and then take on a more grandiose. Of course, all this will take time, and not a little.
The last option that will be described in this article is financial exchanges. If you look at the history and study the biographies of famous American billionaires, you can see that many of them started with financial exchanges, trading on Wall Street.
It was on this that they made their first money, and only then went into big business. The same thing can be done in the modern world, and it is much easier. The stock exchange has been replaced by the Forex and the binary options exchange, which can be traded directly from home via the Internet. You do not have to have thousands of dollars, you can start with a few hundred bucks, and then rise to the level of a wealthy person in a short time.
But why then many do not earn on these exchanges, but lose money?
It’s all about the mentality of a simple person who believes in a “good uncle” and believes that the broker will earn money for him. He does not prepare to trade on the stock exchange, does not have his own trading strategy and treats trading not as a job, but as a game.
