Even if you are going to start a business with minimal investment, you will still need start-up capital. For example, to start sales, you need to purchase a batch of products, rent space, and prepare a website. To start a manufacturing business, even at home, you will need raw materials and equipment. To provide services, you need tools and materials.
Investment experts recommend avoiding credit funds, since over 80% of new entrepreneurs decide to close their company within the first year. If in such a scenario the entrepreneur does not have time to repay the loan, difficulties await him, due to which he will have to give up new attempts to establish his own business for a long time.
Finding Funds to Start a Business
How then to start a business vk database without money? It is more rational to use funds that do not need to be returned in a short period of time – especially when the required amount is not too large. There are several options for providing financing:
Ask your relatives or friends for a loan. This method is the most profitable, as it allows you to avoid interest charges. After the money is returned, you will only have to prepare a small gift as a token of gratitude. It happens that you cannot count on help from loved ones, then the following options may be suitable.
Find investors who are willing to take a risk and provide funds in exchange for some equity in the venture if you are successful. Then you have a business partner, the relationship with whom should be formalized in the form of a contract.
Win a grant. This is assistance from the state and funds that provide support for starting a business in Russia. Find information on the Internet about the programs available to you, then prepare a business plan and application.
Sell property, such as a car. This is an extreme measure, but this financing option is also possible. Smart actions will allow you to quickly recoup your investment and buy a replacement for the sold car.
Take a loan. If other options for finding funds to start a business are not available to you, start by evaluating available offers - there are many ratings on the Internet that compare rates for different programs. Consider the terms and choose the option that is most beneficial for small businesses. It is best to apply for a credit card or get a loan on special terms from the state.
In case of serious problems with money, it is worth fulfilling orders with prepayment, or resorting to the dropshipping system. Then you will sell products that the supplier sends cash on delivery.
You can accept prepayment from the client or act as an intermediary without participating in financial and commodity transactions. This means that you will not need start-up capital to open a business.