One of the first stages of opening a new business is to draw up a business plan. When you carefully thought out all aspects of future activities, the time comes to search for financing sources, which use either debt or loan capital (that is, applying for funds to the bank) or shareholder capital, you provide part of the shares of the enterprise to the investor, and he becomes a co -owner of the company. Equipment for your business can be obtained using an alternative to lending – that has become popular today leasing.
How to understand how much money is needed to start a business? It depends on the type of company and the services provided by it. If you decide to try yourself, say, in the field of services or trade, you will need a small amount of funds, however, enterprises related to high technologies or production will certainly require the cost of leasing and maintenance of equipment. As the company grows and develops, an increasing amount of money will be required, this must also be taken into account, you can not do without external investors. It is necessary to remember about such things as insurance, which requires significant costs.
The bank is the main place where you can take funds for the development of your own business, now there are a considerable number of government programs to support small business with preferential lending. However, banks do not particularly honor novice businessmen, it is usually necessary to leave any pledge for credit. Other banks, on the contrary, support small businesses, so you must first make certificates.
There is another interesting option called suppliers’ loan. That is, you can conclude a contract with the supplier, which will indicate that you will have goods on credit, and then, having sold them, return the money. At the same time, both sides win. If we talk about leasing, then this tool will help you save very well by paying loans for equipment once a month, and also considering them as current expenses, and not buy it immediately.
It is quite difficult to find private investors. These are either bankers, or large entrepreneurs, or brokers, here you need to have connections, a “suspended language” and an excellent concept.
You can save significantly if you competently carry out insurance. Currently, insurance companies offer gentle insurance packages for small business enterprises.
An additional source of income after the company gets on its feet is to sell the company’s shares after the transformation of OJSC. However, for this you need to have great capital, since the costs of selling shares are considerable.