Where to get money for a business from scratch: the most affordable ways

Get a loan from a bank

If you do not have money to develop your business or there is not enough money, contact the bank and get a loan. It will not be possible to finance the project completely, but borrowed funds can be used at the start.

Who is it suitable for?

The loan is available to individuals, as well as existing entrepreneurs and legal entities.

If you have a complete lack of business experience, you will not be able to get money to open a business from a bank. Each bank sets requirements for the minimum “experience” of doing business, usually from 1 to 2 years or more. Therefore, you can contact the bank as a private person and get a non-targeted cash loan.

The second option is to act in stages. Even with a minimal reserve of your own funds, you can register an individual entrepreneur or legal entity, draw up a business plan for development, start working with available resources, reach the break-even point, and only then apply to the bank for a loan.

A year is just enough to test your strength in practice, decide how much money you need for your business and where exactly to invest it. With already accumulated experience, applying for a loan is better than risking borrowed funds at the start.

The chances of getting a loan approved for a young company or a start-up entrepreneur will be increased by the support of special structures that are involved in business development in your region. It is easier to obtain borrowed funds from a bank with their help than by applying on your own.

Such organizations are controlled by the state and operate within the framework of federal entrepreneurship development programs. They do not issue money directly, but provide other financial support: they issue a guarantee, provide collateral and bank guarantees. With such security it is easier to get funds from the bank.

The Fund for Assistance in Lending to Small and Medium Businesses in St. Petersburg offers loan guarantees. There are similar organizations in other regions that help local businessmen.

Scheme for issuing a loan under the program of the Fund for Assistance in Lending to Small and Medium Businesses

To obtain the support of the Foundation, you need to prove the validity of your idea: submit an application, submit a business plan, with calculations of current and projected values ​​of financial indicators.

If you pass the commission check and receive the go-ahead from the business support fund, the bank will readily issue a loan for the required amount.

When it's not worth trying

If there is absolutely no money to start a business and for operating expenses during the first year of operation, the bank will not issue you a loan for individual entrepreneurs and legal entities. According to the rules of most loan programs, you are required to contribute part of your own funds to the project in order to receive the rest of the amount from the bank. If you don’t start doing something on your own, the bank will not believe in you and will not approve the issuance of the requested amount.

There is no need to take out a loan when it is clear that business income is not enough to service obligations. If all the proceeds go to repay the debt with interest, then the loan will be refused. The bank will not finance a project where there is a high risk of non-repayment of money due to a lack of available funds, lack of reserves, small profits and high expenses.

It will not be possible to take money for a small business in this way if your company is declared bankrupt, there are overdue loans, debts or fines. The bank will check the credit history of the company and its founders. Your personal credit file and reputation influence the decision to issue a business loan. It is difficult to obtain borrowed funds with a damaged credit history and a high debt load.

If you already have obligations to banks, and even in arrears, it is almost impossible to take out a new loan. First, you need to resolve the issue with current debts and only then go for a new deal.

Conclusions about bank loans

1. Credit is not available for a business from scratch: banks willingly finance experienced businessmen, so it is better to open a company with your own money, work for a certain time, and only then go for additional funds;
2. The chances of getting a bank loan approved are higher if you issue a guarantee or obtain other guarantees from a business support fund (there are such organizations in every region);
3. If you have a negative credit history, and your company has minimal financial results, inadequate calculations in the business plan and no own funds, the loan will not be issued;
4. If it is difficult to get a business loan, you can get a loan as an individual and use the money to develop your business.

Personal funds

This method can undoubtedly be called the most reliable, since it does not require any loans from banks, which in times of crisis can only harm your company. The negative side of this method is that the development of the company will most likely take longer. But, as they say, if you rush, you will make people laugh, so perhaps in your case you should not rush.

“We started with small own savings and very small borrowed funds, also personal, so we developed slowly due to limited financial capabilities,” Natalya Storozheva, General Director of the Perspective Business and Career Development Center, teacher at the Russian School of Management, shares her experience. – In the first year of the company’s existence, we had only three employees, in the fourth year - four. And only in the fourth or fifth year we began to recruit a team, because we were able to use the money we earned for development. Fortunately, they did not take out any loans, which may have saved the company during the crisis years of 2008 and 2015. Now Perspektiva has a small team of 12 people, and it cannot be said that the company is developing quickly, but it is stable and progressive.”

Ilya Balakhnin, CEO and managing partner of Paper Planes Consulting, agrees with Natalya Storozheva: “If a business doesn’t have enough own funds at the start, don’t start at all. This means that the business plan is not realistic or is calculated incorrectly. Rely on your own and only your own strengths and do not try to catch an investor by the tail.”

Alexander Trifonov, co-owner of the legal service 48Prav.ru, made his first money with his team from recommendations from lawyers. “At first we tried it, it brought benefits, and then, when we found out that clients were willing to pay, we began to take money and reinvested it in the business - we spent it on channels for attracting new clients, on IT infrastructure and on promotion to the target audience.”

How to attract other people's money: partnership, investment, crowdfunding and competition

You can attract other people's money to start a business from scratch. The sources of such finance will be a partner, investor, sponsors, and victory in an entrepreneurial competition.

Find a partner for joint business

A partner is someone who will be among the company’s leaders and will take an active part in management and current activities. Shares in the business are divided between partners, taking into account their contributions and degree of participation.

The rights and obligations of partners and investors are distributed at your discretion. You can agree with your partner that he will not manage the company, or, on the contrary, involve him in the work. The main thing is to distribute roles, responsibilities and shares in the business with everyone who invests their money in the project.

You can look for partners who will join your project with their own money and strength among your friends or on online forums and online platforms for startups. Start with AngelList - about 400 companies and 3,200 investors, including Russians, are registered on this portal. Look for partners on the Napartner startup exchange - create a vacancy for the “Work” section with the “share in the project” filter. Communicate, make acquaintances, talk about your idea, look for like-minded people. This way you will be able to assemble a team to implement your project.

Who is suitable for attracting a partner?

It is better to choose partners for standard projects, for example, opening a coffee shop, hostel, store, or auto repair shop by several co-owners. The risk is not as high as with a startup; this format of business is already on the market and it is easy to predict where the income will come from and how quickly the income will appear.

Such cooperation will help you decide where to get money for a business without a loan: among your colleagues, acquaintances, and relatives. Each participant will contribute part of the funds and will be assigned their own responsibilities: communicate with clients, promote the website, produce goods or provide services. This way, it will be possible to reduce the cost of hired employees at the very start, and during development, distribute responsibility for various areas of the business.

When not to look for a partner

Don’t take risks if you have a micro-business: with its possible division, everyone will want to take their high salary, the income of a small company may not be enough for several partners - and you will quickly go into the red.

Attract an investor to finance the project

The investor contributes money and helps with resources, but does not solve current business problems. He has a share in the company or in profits, so he receives a report on the situation, influences management decisions and controls the overall development strategy. Determine what both parties' responsibilities are in the contract.

Sample agreement with investment terms

You can look for investors among funds and on specialized online services, in competitions and in reality shows for aspiring businessmen. Your idea can be noticed and financed there by both a private investor and venture capital investment companies - companies that provide loans to start-up entrepreneurs with good potential for quick return on investment and profit.

Post a description of your project on the StartupPoint site to attract “your” investor. Ask for help in finding investments in the RunaCapital fund or the IMI.VC fund, specializing in mobile applications, games, and online services. The Seed Investment Fund of the Russian Venture Company with state participation finances projects based on scientific developments and innovations.

Who is suitable for searching for an investor?

Finding an investor will help you solve the question of where to get money for a startup when you have invented a new technology, found an interesting idea for production, are planning to develop a unique service or mobile application, or are launching a social project. It is difficult to predict financial results, but an idea can bring money if you invest in its implementation. The investor himself will not work in the company, he will simply finance it.

When not to look for an investor

You shouldn’t look for an investor to start a simple business: you will work with your own hands, the investor will receive part of the profit. This will quickly get boring, because all the main work is on you, and you are also obliged to share income and report.

In such a situation, it is better to take money to open a business from a bank: repaying the loan with monthly payments is easier than paying off the investor in full. After all, when the company begins to make a profit, he will not want to leave the cooperation and it will be difficult to buy out a stake in the business.

Take advantage of crowdfunding

Crowdfunding is financial support from ordinary people who like your idea. If potential clients and like-minded people have invested in your business, you need to thank them financially or intangibly.

Sometimes financing is carried out in the form of collecting payment for pre-orders of products. In other cases, separate rewards and bonuses are provided, for example, souvenirs with the symbols of the project, dinner with the organizer or guest star, and the name of the sponsor on products.

There are specialized platforms for conducting crowdfunding campaigns that help raise money for business and social projects for a certain commission. Boomstarter and Planeta.ru work for Russian startups.

Who is crowdfunding suitable for?

Crowdfunding is more profitable for non-profit projects: publishing a book, releasing a calendar, organizing a concert, filming a film, holding a fair, etc. But you can also raise money to start a business: to build a farm, open a children’s club, purchase equipment for a pottery workshop. Sponsors willingly support socially oriented projects, charity monetization, educational and sporting events.

When fundraising this way, be prepared for publicity. You will only raise money to start a small business if many interested parties hear about your idea. Crowdfunding is best chosen by those who already have a certain circle of followers, clients, loyal fans, as well as effective channels for disseminating information. It is also suitable for bloggers, writers, actors, singers.

Examples of crowdfunding projects on Planeta.ru

When not to use crowdfunding

You should not use crowdfunding before preliminary calculations of profitability (a third of the collected amount will have to be given to system commissions and taxes), and you will be able to receive finance only after 1 - 2 months.

Without a promotional campaign plan, you should not start raising money for business development, as it is important to actively promote the project. Content development, placement of materials, beautiful “packaging” for an idea also requires costs.

Separately, it is necessary to consider rewards for sponsors who transfer money. If the cost of gratitude turns out to be high, then the economic feasibility of the campaign disappears.

Take part in competitions

There are various competitions held by large companies to support interesting startups. For example, the Lipton GoodStarter competition supports aspiring entrepreneurs who work in the social sector. The winner is determined by the number of likes - whoever has the most wins. Thanks to the competition, you can receive about 300,000 rubles; both a new project and an existing business can participate.

Lipton Social Entrepreneurship Competition 2016

Who is eligible to participate in competitions?

Competitions, as a rule, are applicable in a narrow area of ​​business (often these are socially significant projects), so they are not suitable for everyone. On the other hand, participation in the competition does not require financial costs, but it always works well to promote the project.

Do I need to participate in competitions?

If you meet the conditions, participate. Even if you don't win, you'll gain valuable experience and increase brand awareness.

Conclusions about attracting money from outside

1. Do not look for third-party funds if you have no desire to share with someone or have no one in mind for cooperation;
2. Record in writing the distribution of rights and responsibilities of partners and investors to avoid conflicts in the future;
3. Look for partners and investors on the Internet: there are many platforms and services for presenting a business project and finding financing;
4. Check all the conditions for raising money for a start-up business on crowdfunding sites so as not to end up in the red;
5. If there is a competition in which your project can participate, take part.

Is it possible to open a business without investment?

Is it possible to open a business without investment? This question is asked by all aspiring entrepreneurs who do not have start-up capital to start a business.

Only, to their great regret, any entrepreneur, even with very little experience, will give a clear answer: no, you can’t!!! Not a single business, not a single business, can be opened completely without funds. Entrepreneurs and businessmen among themselves call a “business without investment” a business that requires no more than $1,000 to open.

The only thing that can be advised to beginners who want to become businessmen is that they should not immediately plan to open a large business (restaurant, etc.) that requires large investments. You just need to start by opening a small small business, gradually developing and expanding it.

Small business has a number of advantages :

• firstly , small business is the most important link in the development of the country’s economy;
• secondly , small businesses are mobile and adapt well to changes in the economic situation in the country;
• thirdly , the products and services of small enterprises are in demand regardless of the crisis and the solvency of consumers.

Unfortunately, most people who want to start their own business postpone their intention to open their own business, citing the lack of initial capital. In fact, the lack of initial capital is not a death sentence, but only an obstacle that can be successfully overcome. And people who do not open their own business due to lack of funds are only covering up their indecisiveness.

In fact, finding money is not only possible, but even necessary. It is necessary because your own business can make you a successful, financially independent and rich person. You just need to think carefully and consider all the options and possibilities where you can get money to open a business. And from all the possible options, choose the most suitable one for yourself.

How to defer payments

Another option, if you need money to open a business but don’t have it, is to agree on a temporary respite with payment of start-up costs. You can defer payments to suppliers, agree on rental holidays when paying for premises, or purchase equipment on lease.

The seriousness of your intentions will have to be confirmed by contributing your own funds - from your own pocket you must pay at least 10 - 30% of the rental amount of real estate, the cost of equipment, transport, and consignment of goods. The rest can be arranged with deferred payment.

Who is it suitable for?

This method of finding money for a business from scratch and reducing initial costs is used in trade and catering. Premises for a retail outlet or cafe can be rented with “vacations” for several months. The goods are to be received for sale. Showcases, shelving, refrigeration equipment should be leased.

You can also lease vehicles. Then it will be possible to engage in cargo transportation with a small initial investment, and the cost of the car can be paid off gradually, under a financial lease agreement.

When it's not worth trying

There is no place where you can get money for a business but not invest a single ruble yourself. If there is no money at all, then the option of leasing or deferment is not suitable, because in any case you will need to contribute your own funds from 10 to 50% of the project amount.

You cannot take advantage of the respite if you need to pay for a license, pay taxes, or pay salaries to employees. Payment dates cannot be moved forward for these costs. Fines will be charged for violations of deadlines.

A delay will not help if you need to make repairs to the premises. In such a situation, money will be needed for construction materials, the work of a repair team, and payment for connection to communications. It is difficult to agree with all participants on postponing payment deadlines. But you can get benefits from the owner of the premises for the period of repair.

Conclusions about deferred payments:

1. Not all expenses can be deferred, and if counterparties cooperate, they demand that part of the amount be paid at once;
2. Ask suppliers about the possibility of payment in installments, delivery for sale, deferment and “rental holidays” - this way you can get several weeks of freedom;
3. Use leasing to purchase equipment, vehicles, and tools with minimal initial investment.

Money for business

Opening your own business and finding money for business is a noble endeavor, a little risky, but it can also be a good investment in the future, because, firstly, everyone remembers the saying about risk and champagne, and secondly, sometimes there comes a time when you You understand that you are ready to work exclusively for yourself, and not for your uncle, and you are inspired by the profit indicator exclusively on your sheet, and not by the general reports of companies. Along with the development of the idea, a completely logical question arises: how to get money for a business and at the same time:

• Minimize risks;
• Receive the due amount;
• Spend them wisely;
• Quickly find the amount you need.

In order to minimize the risks of going broke, I recommend drawing up a detailed business plan in advance, regardless of what and how many sources of investment you will use.

How to take advantage of government support

Budget subsidies and grants are provided free of charge - you will not have to repay the funds. To receive money for a small business, you need to collect documents, prepare a business plan, go through a competitive selection process and become a participant in the support program.

The employment center gives small sums to the unemployed to start a business.

The local administration supports start-up entrepreneurs with free payments.

The regional government allocates subsidies for the development of priority industries and holds competitions for grants for young businessmen and women entrepreneurs.

A prerequisite for such programs is paying part of the costs at your own expense. You need to contribute from 30 to 70% of the total cost of the project.

The application must indicate:

1. Budgetary efficiency of the project - the amount of taxes and fees that will be transferred to budgets of all levels, the Pension Fund;
2. The social significance of the project is the creation of jobs, provision of pensioners, large families or residents of remote villages with affordable goods, coverage of the population with household services, etc.

A business plan with calculations of the payback and profitability of the project is attached to the application - read our article on how to draw it up. Each parameter is assigned points, their sum is taken into account when choosing the winners of the competitive selection. If you propose to open a business that is lacking in your area, employ many workers, solve social problems, then you get more points and an advantage over other entrepreneurs.

There is no need to embellish the application and calculations: the commission will check the compliance of actual indicators with plans. If there are large discrepancies, the district or city administration has the right to demand the money back. So, if instead of the promised 10 employees by the end of the year you hire only 1, you will violate the agreement and will be required to return the funds.

You will also have to return the money if an audit reveals that it was not used for the stated purposes. They asked to buy a refrigerator in a cafe, but spent it on advertising the establishment - the grant received will need to be returned.

An agreement is concluded between the administration of a district, city or village and a businessman, which specifies how and when to confirm the intended use of funds. Usually - provide payment documents for the planned purchase within 1 - 3 months, and then present the commission and the purchase itself. The agreement also establishes a minimum term for doing business - 1 - 5 years. If you curtail activities earlier, you will have to reimburse the budget for the amount of the grant or subsidy.

Where and how to get budget support

The Federal Portal of Small and Medium Enterprises will tell you where to get money to open a business in your region. Thus, in the Leningrad region you can receive a starting subsidy of up to 500,000 rubles (subject to paying 20% ​​of the project costs yourself).

Entrepreneurs in the Leningrad region can reimburse the costs incurred:

• up to 70% of the cost of purchasing a new car shop or trailer for off-the-shelf trading, but not more than 700,000 rubles;
• up to 90% of the cost of equipping hostels and private hotels for receiving tourists, but not more than 1 million rubles;
• up to 90% of interest paid on loans and leasing agreements;
• up to 90% of costs for participation in exhibitions and fairs;
• up to 90% of funds spent on product certification, production and implementation of international quality standards.

To receive government financial support, you must first spend your funds and then submit documents for their reimbursement. Contact the Leningrad Regional Entrepreneurship Support Center to find out before opening your business what subsidies are available to you and whether it will be possible to receive funds from the budget free of charge.

Read the article about government support and business development programs in St. Petersburg 2020.

For convenience, use the business navigator service; it will help you find all available support measures, look at options for purchasing a ready-made business or franchise, and also use analytics data to select the type of activity in your city.

In the Business Navigator, all opportunities for receiving support are indicated directly on the city map

Options for support programs where you can get money to start a business from scratch

Subsidy to promote self-employment of the unemployed

Every year, subsidies are issued in the amount of an annual unemployment benefit to those who want to open their own business.

The amount of such a subsidy in 2020 is 58,800 rubles. If you hire another unemployed person immediately at the start, the payment amount increases to 117,600 rubles. Additional money is no longer allocated for the third and subsequent employees.

The subsidy is issued by the Employment Center. To receive it, you must officially register as unemployed, undergo training and testing, prepare a business plan and send it for expert evaluation, and defend your project before the commission. You can register a company or individual entrepreneur after approval of the application.

You are allowed to spend funds only for certain purposes: purchase, renovation and rental of premises, purchase of equipment and office equipment, raw materials and materials, licensing costs, creation of inventory.

The recipient of the subsidy is required to report on the targeted expenditure of funds within three months and provide payment documents on expenses in accordance with the approved plan.

After receiving money from the Employment Center, an entrepreneur or legal entity must work for at least 1 year (in some regions - up to 3 years). If the business closes before this date, the funds will have to be returned.

The possibility of receiving such a subsidy must be clarified with the regional employment service, since the number of payments to the unemployed is limited: only 1 - 3 subsidies per year can be provided per district or city. You will have to compete with others for the right to use these funds.

Read a detailed article on how to get a subsidy to start a business.

Grants for beginning entrepreneurs from the regional budget

Each region has its own business development program, which includes financial support. Grants are issued on a competitive basis to beginning businessmen who have registered recently and have worked for no more than 12 months. The decision on the distribution of funds is made by the city or district administration - applications for participation in the competition must be submitted at the place of business.

Every year, the local administration selects program participants, evaluates their applications, takes into account the indicators of the business plan, the budgetary efficiency of projects, and the type of activity. Recipients of support are selected based on the totality of all criteria.

The grant amount is up to 300,000 rubles, but the businessman must pay from 30 to 50% of the project costs from his own funds. The rest will be added from the regional budget.

The grant must be spent on specific purposes: the purchase of fixed assets, materials and raw materials for production, goods for trade, equipment and tools for the provision of services. A specific list of possible expense items is indicated in the program. If the commission finds out that the money was used for other purposes, then the entire grant will have to be returned.

An additional requirement is to stay on the market for a certain time, on average 3 – 5 years. Otherwise, when closing the company, you will have to return the received grant to the budget.

Subsidies and grants from the state budget

More substantial amounts are available for participants in federal business development programs in certain industries. For example, grant support for family farms reaches 3,000,000 rubles from the Ministry of Agriculture, and up to 10,000,000 rubles are given free of charge for the development of dairy farming.

The Innovation Development Fund provides grants to companies that are engaged in developments in the field of intellectual property, scientific research, and the creation of new technologies. Under various programs, you can receive up to 25,000,000 rubles, but not more than 50% of the project costs. But if the planned targets are not met, the grant money will have to be returned.

Who is eligible for government business support programs?

Each municipality has its own list of priority activities that have a better chance of receiving government support. In one area this may be production, scientific and innovative areas of activity, in another - tourism, agricultural business or crafts. If you plan to do something else, “not a priority,” then you can also use funds from the budget, but the chances of such an application being approved are lower.

Who will not receive money from the budget?

Undesirable types of businesses include bars, gun or gaming salons, insurance and credit organizations - they are encouraged to develop independently, without using budget funds and benefits.

Individual regional programs have their own limitations, so you should first research the support in your area or city to understand whether it is available for your business.

Conclusions about government support programs and subsidies

1. It is not so easy to become one of the recipients of budget support. Money is allocated on a competitive basis and you will have to fight for it;
2. To receive money from the state, you must contribute your own funds to the project;
3. You are allowed to spend a grant or subsidy for certain purposes. Violations and deviations from the plan threaten the collection of the amount issued;
4. After receiving financial support, you need to operate for 1–5 years, fulfilling your promises from the business plan in order to “work out” the gratuitous assistance from the budget.

How to build relationships between sponsor and sponsored

Let's assume that a novice businessman managed to find an investor who is ready to invest money in his project. How to build a relationship with him so as not to “scare him off”? Correct relationships are based on several principles:

1. Mutual benefit. If an investor does not understand what he will get from cooperation, he will refuse to give money. The business plan must clearly outline its benefits.
2. Honesty. Inflated expected profits, hidden costs and other circumstances that may affect the profitability of a business repel investors. Even if they can be hidden at the beginning of cooperation, they will later appear and forever ruin the start-up’s business reputation.
3. Openness. The investor will be calmer if he gets access to the company’s reporting documents, and the entire history of the project will be transparent.

How to negotiate

Negotiations on concluding a deal to help an investor are almost always initiated by an entrepreneur. How should he negotiate to attract a sponsor? First, you need to speak in the “language of benefits”: focus the potential sponsor’s attention on what he will receive after investing. It’s good if the business already has its first successes. Projects that exist only on paper inspire confidence in few people.

Secondly, speak confidently, competently, measuredly, demonstrating knowledge of your project and market realities. There is no need to dump a lot of information on your interlocutor; he will get confused and forget it. It is important to create a favorable impression, to show yourself as a person who has information and knows how to communicate.

Third, ask for little. It is better to find several investors and take a small amount from each than to ask a lot of money from one. A large loan increases risks for the sponsor, which he will not like. Fourth, imagine yourself in the place of an investor. This simple technique will allow you to select the most convincing arguments and even anticipate the response.

Project presentation requires a lot of preliminary work

What questions to ask

During negotiations, questions are mainly asked by the investor, and the startuper answers by talking about his project. But it's a good idea to ask a few questions that will put you and your business in a better light. For example, it is appropriate to ask what exactly the investor expects from cooperation with you and in what time frame he expects to return the investment. This will help you better think through your development strategy and demonstrate to investors your balanced approach.

Correct self-presentation

Investors are often faced with contenders presenting themselves as “the best” and “the only one on the market.” In modern conditions, this is ridiculous, and projects with such theses go into the trash. You should not try to look more experienced and weighty than you really are.

A good presentation is a demonstration of your true strengths, coupled with a willingness to admit weaknesses and identify ways to eliminate them. An aspiring businessman can say: “I am a good confectioner with 5 years of experience. I understand how the kitchen works and what interests customers. I haven’t done accounting and I don’t know which taxation system to choose, so now I’m looking for a reliable accountant.”

Self-confidence without frills, professionalism and a business approach work better than loud statements.

Presentation of a business project

You need to be well prepared for the presentation of the project. The presentation can be verbal only or in multimedia format. The second is preferable. Graphs, calculations, photographs and videos add clarity, that is, they give investors a more accurate idea of ​​the project.

The presentation is divided into two parts:

• speech by the author of the project (the presentation itself);
• answers on questions.

The second part is much more difficult: not all questions can be foreseen. Therefore, a good startuper presents the project himself. He knows him inside and out and can answer any questions. On average, the part before the questions should take 7-10 minutes, with 7 preferable to 10. It is impossible to say how long the part with answers to the questions will last. The pattern is this: the more interested the project is, the more questions there will be.

Sponsors say “yes” to projects with high-quality presentation and great potential

How to log in with zero

You can start without much initial investment, but this will require the expenditure of other resources. It will not be possible to start a business completely from scratch: you will need at least several thousand rubles for a minimum set of tools and to create working conditions. But sometimes you can do without significant start-up capital.

Who can start a business without money

Self-employed professionals in the service sector can start a business without money: consultant, tutor, toastmaster, etc. This is possible when starting a business without mandatory financial investments, when the main investments are the labor costs of the entrepreneur himself: his skills, working time, personal resources.

A photographer, hairdresser, manicurist can start with minimal funds - you just need to buy or rent tools and equipment for work. You can work remotely or visit clients at home.

When it's not worth trying

You cannot open a business with zero investments if:

• you need a specially prepared room (beauty salon, cafe, store);
• a separate permit for conducting activities is required (license for a taxi or sale of medical drugs);
• Expensive equipment, raw materials and supplies are required (food production, metalworking workshop, freight transportation).

Conclusions about starting a business without money

1. Any self-employed person can do without large initial investments when creating a business if he provides services on his own;
2. Instead of money, such an entrepreneur will have to invest his time and resources, since he will not be able to pay others for help.

Cash assistance centers

Most lenders strive to cooperate with entrepreneurs on favorable terms.

Applying for a loan from a licensed lender, who accompanies the transaction with an official agreement with written conditions, is one of the most reliable options for borrowing money for a business. You can borrow funds from a bank or microfinance organization.

MFOs are cash assistance centers that offer borrowers the following conditions:

• loan amount – up to 30-100 thousand rubles;
• refund period – from 5 days to several weeks;
• there is no need to collect a full package of documents and certificates, provide collateral or guarantors;
• the loan is issued to applicants with any credit history;
• Application review time is 5 minutes.

Unlike banks, MFOs do not request from potential borrowers certificates about the status of current accounts in other organizations, constituent documents and financial statements. To apply for a microloan at the cash assistance center, the applicant only needs a passport.

Thanks to promotions and discounts, an entrepreneur can borrow the required amount for business development on preferential terms: provided that the money is repaid in a timely manner, the interest on the loan will be written off.

The following microfinance organizations offer to get your first loan for free:

• E-zaem;
• Ekapusta;
• Moneza;
• CreditPlus.

To apply for assistance, those in need of money just need to visit the official website of the listed organizations and fill out a simple form, entering your full name, contact and passport details, information about income and employment.

Options for receiving funds:

• transfer to a bank card or account;
• transfer to an electronic wallet;
• cash withdrawal at the MFO office or service point of the Contact and Zolotaya Korona payment systems.

Refunds are made in a single payment on the date specified in the contract. The borrower has several options for repaying the loan.

If unforeseen circumstances arise, the client has the right to use the service of extending or deferring the loan.

Where to get money for a small business: comparison table of options

Where to get money for a small business: comparison table of options

Banks

Contrary to popular belief, banks are engaged not only in lending, but also in investing, so it is quite possible to look for a sponsor in this area.

However, it is worth keeping in mind that in most cases banks will not consider a project at the inception stage - financial and credit organizations prefer to invest in reliable stable projects , and refuse to invest in risky enterprises, which, in fact, are any businesses at the stage preliminary preparation.

Summary

1. Without investments, you will be able to open a business based on the services of the entrepreneur himself - read the story about a seamstress who sells dresses through Instagram;
2. It is convenient to receive a deferment in payments to suppliers when launching a retail outlet, and to use leasing for cargo transportation and opening a cafe;
3. State support for entrepreneurship is more accessible to manufacturing enterprises, innovative companies, agricultural producers, and artisans, but each region has its own priorities and financing conditions;
4. Crowdfunding is suitable for creative and socially oriented business projects, where you need to actively attract sponsors with your idea and rewards;
5. Take out a loan only in situations where it is impossible to get by with your own funds, if you already have work experience and support from business development organizations.

Relatives, friends, acquaintances

Finding a sponsor among relatives and friends is the first thing that comes to mind. Indeed, this option is one of the simplest . In addition, your loved ones can support your enterprise at the stage of its inception - serious investors are unlikely to be interested in bare ideas.

At the same time, it is much easier to come to an agreement with friends and relatives than with strangers, and the investment conditions that can ultimately be obtained will be much more lenient and convenient for a novice entrepreneur.

However, it is worth keeping in mind that if the business fails and it is not possible to immediately return their money to loved ones, the relationship will be hopelessly damaged. And if the enterprise, on the contrary, turns out to be successful, investors may be unhappy with the too small percentage that they will receive from your business.

What categories of businessmen can apply for assistance from the state?

Representatives of different types of entrepreneurial activity can receive money for the development of small businesses. There is an official gradation by which you can understand the category of an enterprise:

• beginner (number of employees does not exceed 15 people, turnover – 120 million rubles);
• small (officially registered employees less than 100 people, annual turnover up to 800 million rubles);
• medium (up to 250 people, turnover up to 2 billion rubles).

To be able to receive a grant or subsidy, the following requirements must be met: the company must be at least 2 years old from the date of establishment, be registered with the tax authorities, and have no debts.

Funding is primarily provided to organizations developing priority sectors:

• ecological tourism;
• production of food raw materials;
• innovative production.

Completing financial aid paperwork

The self-employed population can also count on non-financial support in the form of official recommendations on creating a business plan and seminars.

Where is your “business angel” hiding?

It’s good when the initiator is able to act as an investor himself and open a business with his own funds. In this case, he risks only his own funds and does not depend on anyone .

But this does not happen often. Therefore, young and enterprising entrepreneurs ask the same question: “Where can I find an investor for a new business?”

In this article we will look at this issue in detail and give practical recommendations for attracting investment in your startup.

Money for business development through obtaining a loan

If it is not possible to take part in the subsidy program, it is possible to get a loan to develop your own business.

Microcredit

Microloans include loan amounts up to 1 million rubles. The repayment period with interest does not exceed 1 year.

There are public and private microcredit financial organizations. In private organizations it is much easier to get a loan, but the interest will be much higher. You also need to first check whether this organization is in the state register. Lending to unreliable financial institutions has a negative impact on the credit history of an enterprise.

Loans issued by banks

A significant amount can be borrowed from a bank. But this has its own characteristics and difficulties.

If you take out a loan for an organization, it is necessary to conduct an inventory and inventory of the property that is registered with the company. It is advisable to have an authorized capital greater than the minimum allowed by the state.

In the absence of a good credit history of the enterprise or a significant material fund, through which it would be possible to repay the debt to the bank, the likelihood of a positive decision on the loan is not high.

Banking institutions are ready to help

Provided that the amount needed is not very large, you can apply for a loan for yourself as a private person. The amount depends on your credit history and bank. But even with a bad credit history, you can get a loan by attracting guarantors.