How much money is needed for a small business? Determining the minimum expenses

Every aspiring entrepreneur has a burning desire to create a business from scratch. But how to open a business with small financial investments and good returns?

Before moving on to action, it is necessary to delve into the theory. Because preparation is what creates most of success. You need to study the nuances of the market, your own capabilities and work out a strategy. Let’s answer the question of how to open your own business for a beginner.

What to pay attention to before starting a business?

Coaches, business trainers and success mentors paint a picture of the individual entrepreneur who is somewhat reminiscent of a superhero. He is always active, thinks clearly, knows how to communicate with other people, and almost never sleeps.

But even if you don’t have superhuman skills, you probably have character traits that will help you start your own business.

Psychological features of starting a business

Any undertaking involves a lot of effort. This includes time costs, nerves, sacrifices of one’s own interests and a lot of work. Before you ask the question “how to open a business,” think about whether you are ready to sacrifice your already established life? Time spent with family or with a loved one? Available stability? Having fun with friends?

Don't forget about stress. He will accompany you constantly at the initial stages: while searching for premises to rent, when recruiting personnel, arranging supplies, signing contracts, setting up your own production, and so on.

Resistance to stress will allow you to pass all tests with dignity.

Choosing a business idea

Despite your plans and ambitions, you need to think clearly. Conduct an analysis of the location where you will start your business. This could be a city district, a locality, or a specific building. Find out which area is in demand, but underdeveloped. Analyze competitiveness.

Think about whether you are ready to do something that will be in demand. Is it interesting to you?

Important! Some entrepreneurs see a vacant niche and strive to fill it. However, very soon they burn out, lose their business and their investments. This happens because interest gradually fades away, since initially an unloved activity was chosen. Management will quickly slide into mediocrity, and your customers will be lured away by more enthusiastic competitors.

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Starting investments

Many entrepreneurs start from scratch. This is very difficult, time-consuming and resource-intensive. You are lucky if you have some money to start your own business. But follow the principle that you need to start small. You should not get into debt, take out loans at high interest rates with a guarantee of immediate repayment.

A small business may not meet your expectations and there will simply be nothing to pay the bills.

If the need for a loan nevertheless arises, look for the most favorable offers from the bank with minimal interest.

Important! You should not use money that was set aside for health, children's education or other important needs. You risk not getting your investment back, leaving your loved ones without a livelihood.

You can also attract investors to receive start-up funds. To do this, it is enough to draw up a competent business plan, prepare a presentation with a detailed breakdown of the implementation of the project and the profit received as a result.

Don't forget to focus on the profitability of your business, because this is what will ultimately be of interest to your investors.

Another profitable way to attract funds is participation in various government programs. They operate both at the regional and federal levels to support small businesses. Depending on the region, programs may be aimed at supporting small businesses in agriculture, livestock farming, to create jobs, and so on.

Setting goals

Decide clearly what result you want to achieve in the initial stages.

Someone wants to get rich. Others dream of becoming good managers. Still others want to achieve success and recognition.

Still others simply dream of doing what they love.

Always remember that a business consists of a set of activities. And they all require a daily, minute-to-minute investment of one’s own strength and time into development. Therefore, if you are pursuing the goal of getting rich, then most likely you will not achieve success. You need to be passionate about your work and devote yourself completely to it.

Where to start your business?

Before you start your own business, you must:

Decide on a direction. In this case, it is important to take into account personal knowledge, experience and skills. The more information a businessman has, the more likely it is that the project will become profitable.
Research potential competitors. This stage will allow you to understand how to make money from the chosen type of activity, what problems may arise and how profitable this enterprise is. The best option is to study the experience of both domestic and Western colleagues.
Create a business plan. This is a rather labor-intensive stage, on which the success of the entire enterprise depends, as well as the chances of attracting external investors. A well-written project will make it possible to avoid not only unplanned expenses, but also complete bankruptcy. According to statistics, about 70% of all small businesses close within the first year of operation.
Make an estimate. In this case, it is not allowed to use approximate calculations; the figures must be accurate and reasonable. Not all entrepreneurs have enough money for a startup. According to Kauffman Foundation Growthology research: 34.9% of start-up capital is a bank loan; 6.3% – financial assistance from loved ones; 6.2% - money from credit cards; 22.6% - other sources and 30% - own savings.

How to open your own business in 6 steps?

First step. Deciding on an idea

First you need to choose the right direction of activity. And it is important that you like it.
You also need to analyze what you can offer your consumer, in what ways your offer will be of higher quality and unique than others.
It would be a good idea to study your competitors. Find out how in demand their services are.
Find out how freely you can enter the market with your offer.

Step two. Business plan

At the initial stages of business development, you can draw up a plan yourself.

The basis of any plan is the calculation of income and expenses. Based on the amounts received, you will receive an approximate efficiency ratio of your business, as well as its profitability.

Example:

“You want to open a photography studio.

If you do not take into account the expenses that will appear in the first month (opening an individual entrepreneur and further registration), then the estimate of income and expenses is as follows:

monthly rent of the premises will be 50,000 rubles;
costs for electricity, water, internet and other utilities RUB 10,000;
studio worker's salary is 15,000 rubles. per month.;
You will spend about 30,000 rubles on promotion and advertising of your studio. per month;
Every month you need to save money to purchase decor when changing the interior of the location, about 20,000 rubles.

Thus, the monthly cost of maintaining the studio is 105,000 rubles.

The photo studio is open from 9 am to 8 pm. On weekdays, the cost of renting a hall is 1,500 rubles. On weekends, the cost of renting a hall is 2300 rubles.
But on weekdays, on average, the studio is occupied twice a day.
On weekends I am busy for an average of 5 hours.
On average, the monthly income from renting out a studio is 150,000 rubles.
This means that the business remains in the black by 45,000 rubles.”

From the example it follows that when calculating the efficiency of a business, it is necessary to take into account equipment, its maintenance, furniture, consumables, employee salaries, utilities, and so on.

But an entrepreneur should be familiar with the concept of a “break-even point.” This is the volume of production or sales at which costs are offset by income, and ultimately equal zero.

Knowing this indicator, you can determine the payback time of your business, as well as make a preliminary analysis of the cost of rent, delivery, labor, and so on.

Step three. Starting a business

At this stage, you need to agree on the rental of premises, purchase equipment, raw materials, products, consumables, and also fully prepare the place for carrying out your activities.

Reinforced concrete rings

The production of reinforced concrete rings is an equally profitable idea. In one work shift, a team of 3 workers can produce 10 products with a diameter of 70 to 150 cm.

How much can you earn on reinforced concrete rings?

For each product sold you receive up to RUB 3,000. net profit, from 10 products - 30,000 rubles. respectively. Production can be organized even in the open air, the main thing is that there is a flat area and the ability to connect to 220 volts for a vibrator. One mold for filling rings costs approximately 50,000 rubles. and pays off in 1 month.

This topic will always be relevant, since septic tanks are built at every home. Delivery of these products is very expensive, so a small businessman should not fear competition from large players. This is purely a small business!

Opening an individual entrepreneur as a mandatory step when starting a business

If an individual entrepreneur does not want to have problems with the tax authorities in the future, he needs to officially register.

There are several ways to complete registration.

Personal submission of documents to a tax office or a multifunctional center.
Drawing up a notarized power of attorney and transferring documents through third parties.
Sending documents by letter with declared value.
Online registration on the Federal Tax Service website or through the government services portal.
Registration in electronic form through a notary.

Important! There is no need to pay the state fee if you register through a notary, the Internet or the MFC. If registration is carried out through the government services portal or the Federal Tax Service, take care of obtaining an electronic signature in advance. This can be done in a special center by providing documents such as TIN and SNILS.

Making a statement

The application is drawn up in form P21001. The application contains five sheets. They indicate the following information:

personal data;
Place of Birth;
information from the passport;
TIN;
OKVED code;
data for contacting the applicant in the form of email and telephone.

The third sheet is intended to be filled out by foreigners or persons who do not have citizenship of the Russian Federation.

The application can be completed on a computer. Documents filled out by hand, without errors, corrections, and in legible handwriting are accepted.

How to determine the code?

The entrepreneur must indicate his main type of activity and additional types. To do this, you need to find the OKVED directory. The most up-to-date information can be found on the website https://code-okved.rf.

The main activity is the one from which the entrepreneur intends to receive the majority of his monthly income. Because the tax regime is chosen based on this type of activity.

But additional activities can be installed in any quantity.

Tax system

If, at the time of submitting an application for registration, an individual entrepreneur did not indicate his preferred regime, a general taxation system, DOS, is established for him. This means that the entrepreneur undertakes to pay VAT and personal income tax on income from his activities. He also submits a declaration.

If an individual entrepreneur has hired employees, he must also provide reporting on all insurance premiums, as well as personal income tax taken from the income of his employees.

Therefore, individual entrepreneurs choose other special modes.

The most popular is the simplified taxation system. Because an entrepreneur pays a single tax on his income, which should not exceed 150,000,000 rubles. in year. But it is important that the staff should not have more than 100 employees.
The patent taxation system involves the acquisition of a patent for a given type of activity for a period of one month to 12 months. But at the same time, an individual entrepreneur is exempt from reporting.
The single agricultural tax is a regime for people who work in the agriculture, livestock and crop production sectors. A single tax is paid twice a year. But VAT is also charged. The declaration is submitted once every 12 months.
The single tax on changed income is a payment not from real available income, but from imputed income. It is determined depending on the area of work of the individual entrepreneur. But the declaration is submitted once every three months.

Documentation

A correctly collected package of documents helps to significantly save time and avoid unpleasant moments. Because you don't have to solve problems as they arise. They simply won't exist.

But to register an individual entrepreneur you need:

a completed application in the prescribed form;
entrepreneur's passport;
receipt of payment of a fee in the amount of 800 rubles.

Cost of online store advertising

And of course, where would we be without online store advertising! Here, too, a lot depends on experience and directness of hands. Of course, the more money there is to promote an online store, the better. From experience I can say that you need from 20,000 to 50,000 to start more or less quickly. Eating more is great, eating less is also not a problem, but progress will take a lot of time.

The specified amount is enough to connect several large price aggregation platforms, make contextual targeted advertising (for example, on social networks), work on internal SEO optimization, and a little on external SEO.

Beauty business

Every girl and woman carefully monitors her appearance. Therefore, beauty services are more relevant and popular than ever. But you can work in any field - manicure, pedicure, eyelash extensions, hair care, cosmetology.

Specialists with medical education can perform injection procedures. But you can gain popularity and an endless flow of clients through social networks. Including Instagram.

Women's business in the beauty industry is not only a profitable business, but also a real hobby that allows you to create beauty with your own hands, look for new acquaintances and constantly develop. If you choose such a field, rest assured that work will become your favorite thing.

Hot hot dogs

Business selling hot hot dogs is an idea as old as life, but no less profitable. You always want to eat, so any idea related to selling fast food, if properly organized, will not leave you without money. And you don’t need to invent a bicycle - get up and work.

How much money does it take to open a hot dog?

You can open your own point selling hot dogs with up to 100,000 rubles. The main costs will include: a gas counter with equipment for preparing sausages and buns and the actual ingredients themselves. The occupied area is only 2 - 3 square meters. m. The busiest places where sausages will sell “like hot cakes” (by the way, you can also sell pies): shopping centers, bus and railway stations, educational centers, universities, cinemas, markets and other high-traffic places.

Bottom line

But starting your own business is always a fun and exciting activity. With the right approach, it can bring not only good income, but also pleasure from work.

However, success comes only to those who truly strive to achieve their goal. Give yourself the chance to become a self-employed entrepreneur. But carefully analyze your capabilities and go forward to pursue your dream, without putting it off until tomorrow. Because you can become successful today.

But that's all.

We wish you good luck and achieving your goals.
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Loan money for business from scratch

Business often requires large investments. And therefore it is worth taking a risk and raising borrowed funds.

You can get initial capital in the following ways:

Bank loan . Loan for small businesses, consumer loan to individuals. The downside is that you need to start making payments in a month.

When choosing a loan, check the rates. Exorbitant interest rates on the loan will ruin the work. For the same reason, do not take money for business from microfinance organizations.

Receiving grants is possible when you have a business plan ready and you have the gift of persuasion. There is an advantage to this method - funds are not returned.

Although obtaining a loan is associated with requirements and restrictions, it is an opportunity to start a business quickly .