Where to get start-up capital for a business?
Who would not want to become the owner of a large company? Perhaps no one would have refused such an opportunity, only the problem, as always, lies in one thing – finance. To want to open a business and become an entrepreneur is one thing, but to be able to do it is quite another. Good business needs good investments, otherwise there will be no business. About where to get start-up capital for business will be discussed further.
Size is everything!
First you need to decide how much money you need to implement the idea. By itself, to decide, there must be a specific business project. Becoming a businessman is a great dream, but it is not enough, concrete is needed. Thus, before you think about where to get start-up capital for a business, you need to come up with a project for the business itself.
Traditionally, all companies are divided into small, medium and large ones, but these groups are quite extensible, and, say, a small business can cost as much as 30,000 rubles, or 50,000 dollars. Before proceeding with the execution of an idea, approximately estimate how much all the equipment needed for work, office rent, staff salaries, etc. will cost. Also take into account that the business is unlikely to make a profit already in the first month, so it is recommended to have funds available that can cover at least 6 months of the company.
Where to get start-up capital for a business? Real opportunities:
Often, entrepreneurs take loans to develop their business. This is the simplest option in terms of performance, but a number of problems arise at once.
Firstly, not everybody gives out loans, especially if you are unemployed. Whatever plans you have flashed in your head, and modern banks believe only wage statements from work.
Secondly, the loan must be given away, moreover with interest, which creates great risks for the young businessman. If his idea burns out, and this, believe me, happens quite often, then he will find himself in a debt pit, and it will be very difficult to get out of it.
Even if everything works out, however, profits will not be enough to pay interest, the business can fall apart only because of this. For the above reasons, loans are not very popular among entrepreneurs, and often are the last option, if it was not possible to attract start-up capital in a different way.
As a type of loan loans can be distinguished from friends and acquaintances. In this case, the conditions for you will be more loyal, and if the case burns through, then nothing really terrible will happen. True, friends who are able to lend such a decent amount are not for everyone.
A more acceptable option is to attract investors. An investor, unlike a lender, does not require money back and does not impose any responsibility on you. These people simply buy a 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 the easiest thing, and if it does, your sponsor will most likely take a decent stake in the company, if not all, leaving you a nominal director.
Another option to get start-up capital is to make money on a less ambitious project. In fact, you can open a business even without investments. Yes, you will not have employees, will have to work at home and attract every client literally with his own hands, but you will have the opportunity to earn the first money and let them into a more global project.
The same applies to those people who have initial capital for starting a small business, but they want to become owners of an average or large company. Start small, earn, gain experience, and then grasp the more ambitious. Of course, all this will take time, and not enough.
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, then you will notice that many of them started from financial exchanges trading on Wall Street.
It was on this that they made the first money, and only then went into big business. The same can be done in the modern world, and an order of magnitude easier. The stock exchange was replaced by Forex and the binary options exchange, which can be traded directly from home via the Internet. You do not need 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, on these exchanges, many do not earn, and lose money?
It’s all about the mentality of the common man who believes in a “good uncle” and believes that the broker will earn money for him. He does not prepare for trading on the stock exchange, does not have his own trading strategy and treats trading not as a job, but as a game.
Of course, there is nothing surprising that such people lose on the stock exchange, and do not earn. But this does not mean that you can not earn at all.