Where to get initial capital to start a business.

Business without start-up capital is not a myth. Even without a penny in your pocket, you can implement one of the working ideas that I’m ready to tell you about.

Most people are sure that this is just a myth.

There is a solid grain of truth in this.

However, more often we are talking about stereotypical thinking and the inability to see the opportunity to earn income from existing opportunities.

But a business without start-up capital from scratch is almost impossible.

After all, “from scratch” means that you have absolutely no resources.

For example, if you have worked in a garment factory all your life, but are tired of “working as a farmhand for your uncle,” this can no longer be considered a business from scratch.

Because you have a wide range of rich experience, which is much more important and valuable than any start-up capital.

Of course, you won’t be able to create a plant or factory right away without a penny of investment.

Such a business requires too significant start-up resources.

But if you focus on the fact that business is a source of income (any kind), you can create your own profitable business without starting capital.

To prove that money is not always the main thing, below are data on how much it cost to create the logos of companies that are now known to everyone:

As you can see, success is not always possible without money.

Where should a business start without starting capital?

Entrepreneurs who start a business without starting capital often make the same mistake: they make the lack of money a key factor and base their choice primarily on it.

This is not entirely the right approach.

If you imagine step by step what business planning should look like without start-up capital, you will get the following instructions:

In addition to money to invest, you may have something more valuable: knowledge, experience, practical skills.

They should become the starting point for lack of capital.

Write down all of the above on a separate piece of paper, not omitting even minor details.

Which of the recorded tasks do you like?

Entrepreneurship is hard work.

If you expect to do nothing and make a profit, the reality will be severely disappointing.

The only difference from being hired is that you are doing business for yourself and based on your views and preferences.

You will have to do things for days, so it is important to choose something that will bring you pleasure.

Have you chosen any business option without start-up capital?

Even a business without investment requires planning.

A business plan is needed not only to obtain loans or investments.

It allows an entrepreneur to create a step-by-step action plan that can be constantly returned to to adjust the intended course.

Comparison of business without start-up capital and with investment

There is a difference between these two categories not only in the presence or absence of start-up capital.

More precisely, this parameter affects the appearance of some other differences.

Let's compare in table form:

As you can see, the difference really isn't just about financing.

Also pay attention to the risks: when there is no investment, you only risk wasted time and wasted effort.

If any capital is invested, and even more so from other people’s funds, the business turns out to be fraught with high risk.

Business ideas without starting capital

You need to start from your skills and desires, of course.

But if you are just wondering about organizing your business, ideas may simply not come to mind.

To give you some thoughts and ideas, below are a number of options for organizing a business without start-up capital.

1. Making crossword puzzles as a business

Who among us has never whiled away time on a trip or vacation by solving some interesting crossword puzzle?

If this is your usual activity, and you are willing to do it with your eyes closed, why not try yourself as a crossword puzzle maker?

In fact, this has not been done manually for a long time. At least for mass printed publications.

When a person spends one or two days on this work, a special program can handle it in about 15 minutes.

Which option is more profitable in this case is obvious.

The computer-generated version will require only minor subsequent adjustments.

If you have the right skills to automate the process, you can create original or simply fresh crossword puzzles in large quantities.

You can offer them to any printed publication: as a rule, they regularly need new material.

Send a “sample” to all available addresses and at least some newspapers or magazines will respond with joy.

Such a business will not require investments, but you should not count on large profits.

2. Consulting business without start-up capital

If you have ever been interested in organizing your own business, then you know that many issues are delegated to outsourcing.

Sometimes in order to save money, and sometimes because there is no person with the appropriate high qualifications on the company’s staff.

Those with special skills or experience can provide consultations to those interested.

This business option does not involve any investments at all.

You can start by helping a few friends.

Ask them to tell their friends about your services in gratitude.

If you consult well and your advice turns out to be useful, word of mouth will become your free advertising.

Potential earnings can vary greatly depending on how busy you are, how unique you are, and how much knowledge you have.

However, it is worth noting that this business option without start-up investments has the opportunity to scale the business.

For example, create your own YouTube channel with recordings of consultations, which can later be monetized.

It is also a common option for private consultants to retrain as trainers.

But conducting trainings is considered a gold mine, the profit from which will depend only on your efforts.

3. Tutoring services - business without start-up capital

Perhaps the most popular option for organizing a business without start-up capital.

The principle is simple: are you good at something? - teach someone else.

Unlike consulting, which tends to focus solely on the business side, tutoring is thriving in other areas.

Most often in private lessons they teach:

• mastery of musical instruments;
• singing;
• drawing;
• school items;
• foreign languages;
• self-defense and other martial arts.

These are just the most popular options for teaching.

In fact, there are much more of them; it is enough to focus on demand.

The difference between tutoring and consultations is that the latter is usually one-time in nature.

While teaching is permanent, that is, it brings a stable income.

However, they have a common feature: tutoring can also be made a passive business if you record training lessons on video and distribute them for a fee.

Or create a YouTube channel with videos and monetize it.

How to make money on technology without starting capital?

If you know how to handle household appliances at more than a user level, there are several options for earning money.

Almost all of them require investment in one way or another.

For example, to repair even small household appliances you will need a number of simple tools.

And ideally, a full-fledged set of good quality, which costs a lot of money.

But providing such a service as connecting household appliances will not require any start-up capital.

The demand for help from specialists in this matter is indeed quite high.

It’s rare that a home now doesn’t have any technology.

And it may seem to you that according to the instructions, any unit can be brought into working readiness in one or two minutes. But not everyone finds it so easy.

How to start such a business?

Determine the range of equipment that you can safely work with.

It’s better not to rely on luck and the “I’ll figure it out on the spot” principle.

People will pay money, so you have an obligation to provide a quality service.

You can use free newspapers, online forums, virtual bulletin boards, or simply write them by hand the old-fashioned way and then post them around the area.

Even single grandparents living next door can become the first clients. And from them, rumors about your business will quickly spread in all directions.

Some more interesting ideas for business without start-up capital

you will find in the video:

Business without starting capital can really exist, and even develop successfully.

But there is also a negative side: without cash “infusions” you should not count on large profits.

However, this is an excellent opportunity for novice businessmen to try their hand without much risk.

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Alexander Kaptsov

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Opening your own business requires starting capital. But what to do if the required amount of funds is not available at the moment? This is not at all a reason to give up the prospect of starting your own business. Moreover, there are many ways to find money to open a small company.

Most businessmen who start their own business from scratch use bank lending as a source of funds to open a company. However, this source of funds is not as easy to use as it might seem at first glance.

• Firstly , Russian banks put forward quite stringent requirements for borrowers, including:

1. Having resident status.
2. Preparation of a detailed business plan.
3. Ideal credit history.
4. No criminal record, including those legally expunged.

• Secondly , interest rates on bank loans are quite high and amount to about 15-20% per year.

Taking into account the high risks of financing a new company, many banks oblige their borrowers to provide them with collateral or a guarantee.

At the same time, it is fashionable to obtain a bank loan in just a few days, and in the amount that is necessary to create your own business.

If such a possibility exists, then this option is extremely beneficial because:

• The interest rate will be minimal or non-existent.
• Friends will not require an extensive package of papers, collateral or surety.
• The debt can be repaid in a single payment at the end of the term.

However, it is important to take into account some of the negative aspects of attracting a deputy through your friends:

1. Delay in payment of a debt can cause a serious disagreement.
2. If friends suddenly urgently need funds, they will have to return them, which may negatively affect the functioning of the business.

Important point: You can protect yourself from negative aspects by issuing a simple receipt for receipt of the amount of funds, indicating the terms of their use. This document is subsequently certified by a notary office.

A rather difficult path that only a few choose for themselves. This is due to the fact that hoarding always involves withdrawing part of your current income into a piggy bank and austerity.

What you should do to save for your business as quickly as possible:

• Firstly , determine exactly how much starting capital is needed.
• Secondly , determine how much of your current income can be saved.
• And finally , calculate the period during which the required amount will be collected.

Many citizens have gold jewelry, coins and even bars at home. When starting your own business, you can always sell them to a pawnshop, at specialized auctions or to private individuals.

Important point: In the second half of 2016, it was possible to sell 1 gram of gold in Russian pawnshops for 350-2000 rubles (depending on the standard). That is why such a transaction can become a source of funds to cover part of the costs of starting a business.

An apartment is an extremely valuable asset. Selling your own apartment in order to open a company is an extremely risky undertaking. is quite real. With such an impressive collateral, even banks will provide a loan to a beginning entrepreneur at a favorable rate and in a large amount.

At the same time, we should not forget that at any time the mortgaged apartment can be taken away for debts.

Find investors

Even experienced entrepreneurs recognize this method as an effective source of obtaining funds for starting a company.

The essence of the method is as follows:

1. An aspiring businessman generates an idea for a future business.
2. Based on it, a business plan is drawn up with a reasoned and convincing justification.
3. who may be interested in it and invest their funds in it.

Important point: Large investors will never agree to finance hackneyed and dubious ideas. They are mainly interested in innovative and promising startups with a detailed study of income and costs, as well as ways to protect against risks.

Initially, most of the profits will go to investors. However, gradually an entrepreneur can buy out the part of the business he needs and earn a lot of money from it.

Apply for a government subsidy

This option can be considered as the optimal way to form start-up capital. The fact is that the state is interested in unemployed citizens of the Russian Federation finding work or realizing themselves in entrepreneurial activity.

That is why the Russian budget annually allocates funds to subsidize new companies.

The main advantage of government subsidies – no need for a refund; and its disadvantage is a small amount of funds (usually up to 300,000 rubles).

To receive government funding you may need to:

• Submission of a package of documents to government agencies (entrepreneur’s passport, Taxpayer Identification Number, etc.).
• Development of a business plan indicating its payback period and financial viability.

Important point: The state most often provides subsidies to those entrepreneurs who propose projects that are significant for the economy or social life of individual regions.

Receive an inheritance

Many aspiring businessmen dream of receiving an inheritance from a rich uncle. However, this method of enrichment may seem fabulous only at first glance.

In practice, the newly-minted heir may encounter some difficulties:

• Firstly , registration of inheritance is a long and complex procedure that requires the involvement of professional lawyers.
• Secondly When accepting an inheritance, a person takes on not only the property, but also the debts of the deceased relative.

With all this, this method of enrichment cannot be written off.

Important point: Before accepting someone's inheritance, you should make sure that the testator has no serious debts.

Ask your parents

One of the easiest ways to obtain initial capital to open a company.

However, from a moral point of view – attracting parents’ savings does not look so attractive: they already had to invest a lot in their child. However, if there are no other options, you should use this method, but subject to full repayment of the borrowed funds.

Sell ​​home appliances

If the issue of creating your own company is urgent, then it makes sense to consider the possibility of selling home appliances. You can start with those devices that are used less often.

How can I sell equipment? You can place ads on thematic forums and sell it to individuals, hand it over to consignment stores or pawn shops.

Find treasure

Luck never leaves resourceful entrepreneurs who believe in the success of their business. Perhaps one of them will be lucky enough to find, if not a treasure chest, then a rare ancient coin or other artifact.

Important point: If a treasure is found on a plot owned by a person, then he is reimbursed 100% of the value of the treasure; in any other places - only 50%. It is better to transfer the treasure to the state legally, and not try to sell it on the “black” market, since criminal liability is completely unnecessary for a novice entrepreneur.

This method does not imply the possibility of turning a novice entrepreneur into an experienced trader. Here we are talking about the ones he has. In Russian practice, there are cases where grandparents left shares they received during privatization as an inheritance to their grandchildren.

Important point: You can sell shares on the stock market or offer to buy them back to the joint stock company itself.

Make extra money on the Internet

Making money on the Internet has long become a source of additional income for hundreds of people around the world. If the basic salary provides a person’s current life activity. Then the funds earned on the Internet will be able to accumulate and accumulate in order to form start-up capital.

Write texts, create and promote websites, draw banners, maintain your own blog, act as an intermediary for large trading platforms, etc.

Get a second job

A similar option to the previous one, which assumes that the funds from the second job will become a source of savings for the business.

As a fan of searching the Internet for various ideas for private businesses, I came to one simple conclusion. You cannot do without your own funds in any field of activity, even in intermediary. That’s why I wrote this article about where to get start-up capital and another one ()

This begs an elementary question: where to get the notorious initial capital if it doesn’t exist?

This question is especially of concern, perhaps, to people full of brilliant ideas and grandiose plans, summarized by the now fashionable word “startup”. And among them I distinguish for myself the following main categories:

— final year students who have heard a lot about the “startup” movement from teachers and classmates. They often even go to special meetings and are full of all sorts of original ideas (it’s a pity that few of them come to fruition);

— programmers can be identified as a separate element among students, and even more experienced specialists. As a rule, they are either looking for partners to implement a project, or they want to join an existing project and help in its promotion;

- middle-level managers, inspired by stories of fast startups - take-offs and quick riches;

— corporate startupers, organized into unique entrepreneurial corporations. This is a fashionable and actively developing trend.

There are still plenty of “subspecies” of startupers that can be identified, but leaving theory behind, let’s move on to practice, i.e. to the issue of investment.

Relatives or friends

The easiest way is to borrow money from relatives, friends or simply solvent acquaintances (the latter, however, may be interested in receiving a percentage of future profits).

The latter are smoothly combined into the category of professional startup investors. It seems like a great, and most importantly, fashionable idea to finance startups. It’s just a pity that there are very few people with a professional approach to this issue, and amateurs, as a rule, do not establish clear rules and are not too tolerant of the failures of their “wards”.

Such investors can be divided into two categories – good and evil “angels”. With the good ones, everything seems to be clear: the basis for the desire to invest in any project is, first of all, sporting interest and a real desire to help in the undertaking, and secondly, the profit received in the future.

“Evil” “angel investors” immediately clearly dot the i’s. And as a result, under the pretext of minimizing their risks and additional motivation, the startup may be asked to receive 50% of the amount in return and 25% as collateral + clear deadlines for completing the business plan. As a result of such “draconian” conditions, you can simply lose your established and promoted business, because the profit from it will go in a completely different direction.

Subsidies

The next source of investment that I would like to mention, unfortunately, is now available in reality only to residents of the capital and large cities. We are talking about subsidies issued by the Department of Science, Industrial Policy and Enterprise. According to rumors, it is difficult to get a subsidy there, but it is quite possible, because... The scheme is very transparent and free of corruption.

If a product or project has already been developed and lives its own life, but for some reason is not selling particularly successfully, then participation in a competition is a great way to express yourself, a kind of test of your capabilities and an additional way to “shine up” in front of investors.

In some cases, the result of the competition for its winner may be not only funding, but also support in the form of necessary contacts, office space, etc. Such assistance is usually provided by an accelerator fund, which is a peculiar mixture of a competitive framework and a venture fund.

Funds

Continuing the conversation about the latter, it is worth recognizing that this is a very fashionable trend nowadays, and therefore it is growing very actively. They can be divided into funds that provide the so-called. seed (the above-mentioned accelerator funds) and late financing.

Funds that provide late financing usually expect stable and dynamic sales from a startup and therefore they are much more numerous than seed ones.

The following largest funds can be distinguished on the modern market: Glavstart, AdVenture, InCubeAccelarator, TexDrive, Farminers. I repeat once again: a venture fund in itself is now an excellent way to make money, which, of course, requires certain knowledge and experience.

Business incubators

It is, of course, worth mentioning strategic investors, who, of course, finance already fairly well-promoted projects that can hardly be called startups.

Investment options include business incubators. Of course, the famous US venture specialist Nabar Afeyan once called incubators a place for weak children (meaning startupers), the strong must survive on their own. This statement, in my opinion, is quite far from the truth. A business incubator can be an excellent runway for a business of any level.

Its essence lies in the fact that a novice entrepreneur is provided with services such as office rental, accounting, consulting, etc. on very preferential terms, or even free of charge.

In addition, an important “plus” of the incubator is the presence of “people like themselves” nearby, which results in the exchange of ideas and data, the solution of common problems, and simply the spirit of healthy competition.

To sum up everything that was said above, I cannot ignore such a subtle point as the ability to talk with investors. And this is not as simple as it seems at first glance. An incorrectly structured process of attracting investments can greatly delay the result or even have the opposite effect.

It’s great if the team has a person who knows how to build communication with an investor in the right direction. If there is none, then it makes sense to resort to the services of an investment broker. Despite all the positive aspects, the price for their services is pleasantly surprising, because... fluctuates in the range of 3-5% of the amount raised in the business.

What opportunities can you add for obtaining start-up capital?

Starting a business from scratch in a crisis year is a difficult task. But if you take the matter seriously and calculate everything, then any one can become an excellent source of income. Are you stopped by a lack of money or don't know where to start your business? We will tell you how to open your own business from scratch in a small town in 2017, even without initial capital.

Need an idea

First you need to decide on an idea. It is not necessary to come up with something unusual or complex from scratch. Let the business be connected, for example, with your hobby. You shouldn't work on cars if you don't understand anything about them. Think about what will be closer and clearer to you. You can connect your business with your professional activities. Then your knowledge and experience will help you implement the plan.

You should not expect that by opening your own business with minimal investment, you will immediately receive a huge profit. Entrepreneurial activity has its own laws: income directly depends on the size of the business.

Types of business:

• Small businesses are entrepreneurs who are engaged in small, narrowly specialized activities. If you are planning to open a home business, then you should not expect large incomes, but the funds you will need to start will be minimal.
• Big business is a large production or company that occupies its niche in the market. To create, you need impressive initial capital and knowledge in a certain area.

It is worth opting for large banks: Sberbank (credit “Trust”), VTB24,. They offer loyal lending programs. Read the terms of the loan agreement carefully: it is more profitable to take out a loan that is calculated based on the balance.

– Borrow from friends or relatives.

This is better than taking a loan from a bank, since you will not be charged interest. But it’s worth thinking carefully about the time frame within which you can repay the debt.

This is the most difficult but attractive option. The sponsor will be interested in how much and in what time frame he will earn from your idea, so you must have a clear business plan. Also pay attention to the presentation of the product or service - it should be bright and memorable to the investor

To attract investors, you must have a clear business plan.

– Sell property.

To obtain initial capital for a small business, it is often enough to sell a car or land. But before selling, you should weigh all the risks, since the business may go bankrupt, and you will not get the property back.

- Earn money on your own.

This option is the most difficult: the reason is low wages, especially in the regions. Accumulating initial capital is sometimes simply unrealistic.

If you don’t have enough money and you can’t attract investors, then you should opt for a business with minimal investment. These include all small service sectors and home businesses.

At the age of 23, Nikolai Emelianenko is already the owner of a small coffee shop “Black Cat” in the city of Shakhty. He created his business with virtually no initial capital. According to Nikolai, this project was inspired by his mother, who knows almost everything about coffee. The young man found a program to support young entrepreneurs, under which he received a loan of 300,000 rubles without collateral. It was possible to meet such a small amount thanks to saving money: I made the repairs myself, combined several options when purchasing furniture, bought some of the equipment, and rented some. After a few months, the coffee shop became self-sufficient.

Registering a business

Once the idea has matured and you have prepared a business plan, you can begin registering the business.

To register you need to select one of the forms:

• Individual entrepreneurship () is the simplest form of registration. Suitable for small or home businesses and processed in 1-2 weeks.
• Limited liability company () – this form of ownership is more serious. We recommend registering an LLC when organizing production or a serious company with the involvement of investors.

After submitting documents for registration of an individual entrepreneur, you will have time to resolve organizational issues: find and rent an office, purchase equipment, select, hire staff. This all takes a lot of time and effort, so you should be patient. You need to invest not only money in your business, but also personal time. This is the only way to make a good profit.

The form of ownership is indicated in the business project and is selected individually in each case.

Possible mistakes

Organizing a small business is possible for anyone who is not lazy and is ready to go the long way: from an idea to the implementation of a project. Not every business will immediately make a profit and grow quickly. Young entrepreneurs often make a number of mistakes:

1. Lack of a business plan.

Don't skip the business planning stage. The plan will help you control upcoming expenses and predict possible development options for your company.

2. Ineffective waste of initial capital.

It is necessary to choose a middle ground and distribute funds so that there is enough not only for the organization, but also for advertising and design of the premises. But do not forget that, for example, if you invest most of the money in design, you may not have enough for advertising and clients simply will not reach you.

Young entrepreneurs sometimes underestimate the role of advertising. With the help of professional promotions, your business will grow faster. Initially, it is enough to give a few advertisements to major publications in your region. We also recommend that you pay attention to - this is an excellent promotion tool. Inexpensive, but the most effective advertising is on the Internet. By paying 1-2 thousand rubles, you will cover more.

4. The profile is too wide.

If you have chosen clothing sales as a project, it will be difficult to please everyone at once. Let the niche be narrow, for example, sportswear for men. You can take wider positions only after free funds become available.

A married couple from Volgograd, Alexander and Olga Rudenky, have been doing weddings for three years. According to them, at the beginning of their journey they had little idea of ​​this business and delved into everything through trial and error. It took Alexander and Olga some time to take their place in such a competitive niche. There were times in my work when I had to worry about the lack of orders. But success came, also thanks to perseverance and constant work.

You should not count on a quick payback for a new project. Any business, even a small one, is work. Dedicate all your time to the task and you will definitely achieve results. The prerequisites for starting your own business are initial capital, a desire to do something and an interesting idea. And the correct and step-by-step organization of the project will be an excellent start on the long and winding path to success, even in a crisis.

Business financing » Small business loans »

Difficulties with initial capital are a traditional problem for beginning businessmen.

Actually, in 90% of cases, it is the lack of start-up capital that is the reason why a business is never opened. On the other hand, many business gurus reasonably note that the problem of “not enough money for business” is a problem not only for beginners. There is always not enough money. Any large and successful company will always find a dozen projects that could give excellent results - but there is not enough money.

That is, the reason not to open your own business “I don’t have the funds for it” is nothing more than an excuse. However, you cannot build a business without initial capital. Let's try to find real ways to raise funds.

Ways to obtain start-up capital

There are not so many of these methods, so every budding entrepreneur can at least try to use all these opportunities once or sequentially.

Actually, there are exactly two ways.

The first way is informal financing

Classic formula: 3F: family, friends and fools (family, friends, fools). Roughly speaking, this is a loan from relatives or friends or attracting wealthy people with whom you are not familiar (“fools”). “Fools” - because having money, they have no ideas for increasing it or simply do not really need it (or mother laziness). Although, the unflattering name is mainly due to the high risk of financing start-up entrepreneurs, as well as the fact that people with no business experience cannot objectively evaluate a particular project. And often they really give money to a lost cause.

On the other hand, being a “fool” is not so bad. Often, for a fairly modest investment at the initial stage of business development, such people receive a substantial piece of a prosperous company. Everyone knows the story of how the founders of Google offered 10% of their future company to the owner of the garage where they started.

How to get start-up capital

However, as already mentioned, there are corresponding risks.

This brief excursion into the concept of business fools (sometimes, on the contrary, called “business angels”) is needed so that you understand who you have to work with (since you are reading this article, it is clear that you need money).

This path of “money through acquaintance” has many disadvantages. It captivates with its simplicity, but many businessmen who started this way mention numerous problems that arose during communication, even complete quarrels. An important point: it is unlikely that it will be possible to attract significant capital.

Bank lending, obtaining loans from special funds

Accordingly, the second way is to extort money from special organizations. Despite the presence of obvious disadvantages (primarily psychological - it is always easier to turn to friends for help), this option also has significant advantages. These include:

• the conditions for obtaining a loan are quite standard - there is no risk of “overpayment” in the form of a huge piece of the future business, which often has to be given to “fools”;
• bank specialists will evaluate your business plan and, perhaps, find its weaknesses, which in the future could result in serious financial losses;
• you can attract large funds at once, which greatly saves time (which is money!).

This site talks about how to obtain financing for your business on favorable, good terms. All of his materials are aimed specifically at making it easier to obtain a loan for a fairly long period of time with a low interest rate. Read other articles for specific tips and tricks!

Articles > Section "Start-up capital, minimizing costs and risks when creating a business" > Money for business. Start-up capital: main sources

Money for business. Start-up capital: main sources

Alexander Karpov, head of the open Internet project smart-venture.ru, author of the book “Creating and developing an effective business from scratch”

Obviously, starting a business requires some initial capital. Therefore, startup financing is a very important issue for anyone, especially a new entrepreneur.

By and large, there are not so many sources of start-up capital for a business. Moreover, the use of each of these sources has its pros and cons.

So, starting capital for launching a startup can be obtained as follows:

Creation and development of an effective business from scratch

Do it wisely - hit the target right away!