Main sources 1. In Russian Aphorisms: According to foreign sources. - M., 1985 Beyton A. et al. 25 Key Books on Economics: Analysis and Commentary. - Chelyabinsk, 1999 Business and manager. - M., 1992.Beers A. "Dictionary of Satan" and stories. - M., 1966 Boyette J. G., Boyette J. T.

The development of technology is forcing more and more people to think about their own business, as jobs are getting smaller every day, even specialists and professionals are being replaced by robots. The main questions when starting a business are: idea and means for starting. How and where you can raise capital is described in this article. When choosing a method of financing, it is advisable to contact trusted sources and trusted investors.

In the modern world, a person is constantly surrounded by various kinds of businesses. Most of them are created by the simplest people who have an idea. Its implementation could take a long time. Sometimes a worthwhile project quickly turns into a profitable business. An economist once said, “Looking for a business idea? Find something in the environment that doesn't suit you. " This is how dry closets appeared on the streets, cafes with the ability to take out orders and much more.

Business types

With the advent of new technologies and the increasing needs of people for comfort and luxury, the number of types of business is growing. You can endlessly list the spheres and directions, we focus on the main ones:

• auto business;
• tourism and transport;
• wholesale and retail trade;
• repair and construction work;
• agriculture;
• entertainment and hobbies;
• education;
• beauty and health and others.

Many of them have already partially or completely switched to the online platform. When choosing a direction, one should be guided not only by profitability, but also by personal interest. One should have a sincere interest in the business, burn with it and strive to bring the enterprise to a qualitatively new level in terms of profitability and development prospects.

The cost of starting a business depends not only on the direction, but also on the form of entrepreneurship. In a number of situations, only a small amount is enough to register a business, you can use both your own apartment and a garage as an office, and personal mobile devices will become development tools. This option is especially common among freelancers and people involved in Internet projects.

Company registration cost:

• Individual entrepreneur - eight hundred rubles, as well as payment for copying materials;
• LLC - four thousand rubles, in addition to this, a minimum of ten thousand of the authorized capital is required (data for 2018).

As for investments in a new enterprise, they can be very different, since they consist of the prices of equipment, rent of premises, if required, the number of personnel who will need to be paid wages and so on. So, how much money you need to open your business is not an unambiguous question, since it depends on many factors.

Drawing up a business plan for the project

This is one of the key aspects when planning future activities. Drafting a project begins with defining goals and a timeframe for their implementation. Further, the resources required at the initial stage and the payback period are calculated. The last parameter is extremely important when attracting investors. People who are ready to invest their money in someone else's business, first of all, look at the period of time within which they will begin to receive dividends.

When drawing up a business plan, you should be guided by the following rules:

1. Timely study the entrepreneurial market, analyze existing companies, potential competitors.
2. Determine the advantages of your company that will allow you to become better than competitors... The project plan should reflect all the strengths.
3. Clarify the strengths and weaknesses of the project, as well as ways to overcome the weaknesses.
4. Write a marketing plan, write an advertising campaign in one section, and methods of attracting regular customers in the second.
5. Determine what the main problematic, that is, what problem the new business will solve.

As part of the financial plan, it is worth identifying possible unexpected losses and options for raising additional money. Such reinsurance will allow avoiding problems during implementation.

Today there are many business development strategies, consider the most common among them, which have proven their effectiveness over a long time.

Key areas of entrepreneurship development:

• market penetration - entering new potential consumers through a territorial change of location, as well as the release of new products;
• market development - opening new points of sale for goods and services;
• alternative channels - choosing new sales routes, for example, using an online platform;
• product development - improvement of manufactured goods and improvement of the quality of services provided by attracting specialists;
• new products - the creation of new products and services allows not only to attract new customers, but also to expand the range of consumption of existing consumers.

When choosing a strategy, it is important to focus on the characteristics of the market, the age category of the bulk of potential customers, their interests and needs.

Where to get money - the main forms of sources of finance

The question of finding money is especially acute when it comes to expensive business projects that require the purchase of equipment. For the successful completion of the case, it is worth making a detailed and truthful plan. Openness attracts investors. The main sources of business financing are divided into external and internal.

External

The main external sources of business financing include:

All external sources of financing are associated with the need to return finance to third parties. Investing in start-up businesses is a common form of investing money.

Internal

First of all, when looking for money, a beginner and an active entrepreneur turns to his own money. The main resources used to finance a business, as internal, include:

• initial capital - basic investment in development;
• income received from activities;
• money of employees and relatives of a businessman.

The capital of the company is based on the initial investment of the founders. Of course, in the twenty-first century it is possible to start a business without any money, but it is much easier when there is a certain amount accumulated on your own, and represents investment capital.

There are several options for attracting investment at the initial stage of business development. All of them are available to the newbie in the field of business, but you should not try to use all of them at once. It is recommended to choose several main directions and focus on them. Start-up capital for small businesses can be found through various methods.

Own funds

The most common answer to the question: “Why don't you start your own business? - No money". Indeed, most beginnings require an infusion of finance. They represent an investment in a starting project. Below will be presented options for where you can get funds from outside, but often it is difficult to do without your own money.

As a rule, if a person does not have enough finances himself, then he attracts one or more people into a partnership. At the initial stage, and afterwards, doing business in a group is easier, and of course, finding a certain amount, for example, is easier with three of us than alone.

It is recommended to immediately share responsibilities between the founders and the principles of making a profit. There are many varieties: for some, dividends are determined equally, for others - in accordance with investments, and for others, based on the amount of work done.

Government Grants and Government Assistance Program

Receiving grants and other forms of assistance from government agencies is a long procedure, burdened with the collection of many documents. In most cases, the authorities support initiatives in industries that are of interest to the country as a whole.

It is difficult to get a grant for a venture to open an amusement park or cafe. However, if the project satisfies any social needs, for the implementation of which the authorities do not have free funds, then there is a chance to secure financial support.

When contacting government agencies, it is worth carefully working out the project, collecting all the documentation, obtaining permits, and the like. The allocation of money will occur exclusively if the subject shows:

• the admissibility of the activity, that is, the availability of permits;
• social significance - how it will help the society or certain categories of the population;
• profitability - the business will not burn out;
• personal readiness to take responsibility for any outcome.

Features in the allocation of a grant are the need to pay tax on the money received and the phased receipt of funds in accordance with the business plan. Financing of small business by the state is one of the priority areas in modern Russia. The difficulty is that there has been a budget deficit in the past few years.

Venture capital is a monetary investment by third-party investors who are focused on new projects and startups. Investors are willing to take risks, but expect higher returns than those who fund standard lines.

Thus, venture capitalists, as a rule, invest in many non-obvious projects and benefit from the high profitability of a number of them.

When attracting this kind of capital, it is worth focusing on the high profitability of the business in the short term. If it is permissible for a realizable enterprise, then there are great chances of attracting venture capital investors.

Private foundations and business incubators

Business incubators are a fairly new direction in modern Russian Federation... They are organizations that guide and support aspiring entrepreneurs at all stages of development.

In most cases, their assistance is based on the provision of premises, legal support and accounting services. Financial assistance is not provided in a direct form, but a businessman has the opportunity to save money in a number of areas, as well as receive the necessary consulting support.

Private funds created by businessmen and investors are also one of the options for raising outside capital. The main thing is that the goals of the entrepreneur and his idea are consonant with the values \u200b\u200band principles of the organization. It is generally easier to obtain funding from a private fund than from government authorities.

Business angel investments

A business angel is a cross between venture investors and an incubator, as both financial and advisory support for a young entrepreneur at the start of a project is provided.

In a number of cases, an option is envisaged when financing is carried out on condition of division of the business, that is, transfer of part of the company to an angel. This option is often considered by loners, that is, people who single-handedly open a company, as well as those who have failed to raise capital by other methods. For example, at one time the Amazon company appeared precisely thanks to such investors, not a single banking organization believed in the idea of \u200b\u200bthe company, the creator of which is the richest person today. A business can be financed in different ways, in particular, with the support of other businessmen.

Bank lending

The most common way to attract external capital is debt in a financial and credit institution. The evolution of the development of the banking sector has led to the fact that the economic potential of the direction has gained great power. It is very difficult to predict whether a loan will be received, since banks take into account many aspects, and there is also a human factor.

When choosing this method, it is recommended to draw up an extensive list of potential lenders, and be prepared to visit more than one institution. Special people who are market analysts and assess the development prospects of a particular direction are engaged in issuing loans for business, but they are all people. The mood of this or that person, in particular, depends on whether the application will be approved.

A positive answer: is it worth lending to a client, influenced by such a factor as the presence of previously issued loans and their repayment. The most interesting thing is that banks are most loyal to those people who have had or are having difficulties with the return of money. For the bank, this is an indicator that they will take the maximum percentage from the client.

Leasing is a salvation for many aspiring entrepreneurs who are burdened with the purchase of expensive tools. It is much more difficult and more expensive to purchase equipment than to rent it.

As a rule, the interest rate is not very high, although it all depends on the subject, and it is much easier to recoup a monthly payment than the cost of the instrument. Car sharing is a striking example of the modern leasing business. A person, having rented a certain amount of a car, gives it to everyone who wants it every minute. His expense items are the maintenance of the application and the care of the machines. The rest of the difference between income and interest on leasing goes to him.

Loans

Loans are divided into short-term and long-term. In the first case, we are talking about a short loan of money, for example, to buy resources. The advantage of this kind of loans is a low interest rate and no long-term monetary dependence on the lender.

Long-term loans are usually provided against property collateral. The essence of such a debt boils down to the fact that in the event of non-payment of the loan, the lender seizes the firm's property as compensation for the lost money. Thus, securing property provides more opportunities for the entrepreneur. If the company does not have real estate, then any personal property, for example, an apartment or a country house, can act as collateral. People also pledge cars and other valuables.

Loans are provided even if there are guarantors. This option is not presented in all banks, and in most cases it takes place when it comes to small amounts.

Crowdfunding platforms in Russia and abroad

Crowdfunding is specialized sites, which collect money for specific purposes. Most often, they are socially oriented, for example, helping victims of a natural disaster, however, there are platforms focused on the development of certain business sectors.

In particular, young musicians often raise funds in this way to release an album or record a video. If a person feels that his undertaking will be of interest to large masses, then he can turn to this method of raising funds.

Moreover, the creation of the site does not have to be oriented only towards Russian investors. Often people from other countries actively support ideas that are close to them in spirit. Billions of dollars are raised annually through small donations. The main principle is voluntary participation, and the contribution can be even the smallest. This method should not be attributed to the main ones, but it can allow you to collect additional finances.

What funding sources are beneficial for small or medium businesses?

There is no single answer as to which financing for small and medium-sized businesses is better to choose. It all depends on the direction of the enterprise, the riskiness and the chosen strategy.

The advantages of internal sources of business financing are that there is no need to attract third-party money, but in practice it is not always possible to implement this option. The need to search for additional funds, as a rule, is associated precisely with the lack of internal capital of the company.

When choosing a specific external source, it is advisable to choose loans with a low interest rate and a long term, if you are not sure of a quick income. It often takes several years to reach zero. With the Internet business, this situation is changing, profits can be made almost immediately.

In practice, there are different sources of financing for small businesses; when choosing, you should be guided by a compiled business plan. If an entrepreneur has the opportunity to start a business exclusively with his own money, then this is an expedient act, since otherwise it will be necessary to return the funds without having a guarantee of success. A business can be financed in different ways, as a rule, an entrepreneur uses several methods. The more money is required to start or develop, the more options the entrepreneur resorts to.

In contact with

Many aspiring entrepreneurs are looking for sources of business financing to start their own business. It can be a loan, investment or receiving a grant. In the article we will talk about the features, advantages and disadvantages of these types of investment.

Today, there are plenty of ways to find money to start a business, which allows a novice entrepreneur to organize a small, medium or large business.

Main sources of funding

Distinguish between external and internal financing. Internal is the use of equity (net profit, deductions), and external - in the use of borrowed and attracted capital.

The organization of entrepreneurship often requires external investment. This can be a bank loan, third-party investment and a grant. We will consider the features of these types later. In the case of an organization, self-financing can be used. Naturally, this is the best option, because you do not have to pay the interest rate or "share" with someone your new source of income.

Direct and debt financing

Today, debt financing is considered the main source of raising money. It is beneficial in that it does not imply a partial sale of the business to another person. Often, raising debt capital bring good results. The main purpose of such investments is not to gain complete control, but to fix income for a period of 1-3 years.

Direct investment is an equity investment to generate income and become eligible to participate in the management of a company. The investor has the right to participate in the board of directors, he influences the formation and change of the business management team, proposes the development strategy of the enterprise. As world practice shows, direct investment is the purchase of more than 10% of the authorized capital of an enterprise.

The investment method is chosen depending on your goals. If you are going to open a large production, it is much more efficient to take.

How do I get funding?

How to get funding is an important question that worries not only beginners, but also more experienced entrepreneurs. It is necessary to look for financing options after the business plan of the project is drawn up. This is an extremely important document, without which one can hope for external investments. Banks and investors need to provide a plan. It is important for banks to make sure that the loan is repaid on time. As for investors, they must know after what time the enterprise will become profitable and profitable for them. About why you need it and how to develop a business plan,.

When looking for funding, you have to go where they want to see your plan. Imagine it without exaggerating sales volumes and try to make it stand out from other plans. If you own the ownership of real estate where you plan to start a business, for example, open a potato chips factory, a bakery or something similar, and the value of this property is sufficient to repay the loan, then you can count on a loan from almost any commercial bank.

Benefits of lending

Often business lending commercial banks are carried out without problems, but only if entrepreneurship is already developed and brings a stable income, or if the borrower has already developed one business and is going to open a new one. If you are going to take money to start a business on credit from scratch, prepare for difficulties.

Consumer loan in a bank

If you are more attracted to, and do not think about a large enterprise, take a consumer loan from a bank. Many banks in Russia give loans up to 100,000 rubles without collateral, without income certificate and without guarantors. To obtain more serious amounts on credit, you will need a surety, pledge or certificates.

Money secured by property

If you have a car, apartment, non-residential premises or other valuable property, you can take out a secured loan. For the development of a large business, the funds offered by the bank are often insufficient. Also note that only with 100% confidence in success can you think about lending.

Investment

Investment - a good option for getting money to start a business. The search for investors means that you need to find a partner who is ready to partially or fully finance your endeavors.

Finding an investor is a difficult but very real task. Investors are prudent and cautious people, they will not give you money for something that could fail. To attract investors or partners, you will need a carefully thought out business plan, and it is better to turn to specialists on this matter. On how to develop this document, Lenders should be more than confident that the business in which they invest their own money will be profitable for them.

How do I get the Grand?

Grand is the best alternative to bank loans and other types of financing. The advantage is obvious: the grand does not need to be returned. But keep in mind, grants are not meant for you to waste money just like that. The person who pays the money is interested in you solving his problems.

Often on business grants budget funds are allocated for the development of small and medium-sized businesses. Money is paid by those who want to develop a priority type of activity for a certain region. For example, it is quite possible to get a grant for the creation of a waste processing plant, research of new energy-saving technologies, for the improvement of the environment, etc.

Grants are provided for innovative projects where there are serious scientific developments. The main Russian source of grants is state fund promoting the development of small enterprises in the scientific and technical sphere. Sometimes the money is allocated by large manufacturing companies that are also interested in the development of high technologies.

Finally, let's say that one of the most promising areas where serious investments are not needed is online business, the ideas of which are possible. In this area, a few thousand rubles are enough, you can also engage in activities where you do not need money at all, only knowledge.

All cheerful day who came across this post in the middle, or at the end of the working day! Today we will reveal such a minor, auxiliary topic as the main sources of business financing. It is simply necessary to delve into this topic if your goal is to understand how the economic system of society functions. Let me remind you that the study of this section is provided for by all specifications of the discipline "Social Science"

Sources of financing

Business is, in short, entrepreneurial activity, the purpose of which is to make a profit, that is, roughly speaking, making money. A business starts with the first deal when you sell something: a product or service, or something else (who knows what will be invented there in the future!).

Any business starts with start-up capital. It can be anything. For example, a friend of mine started a business with 10,000 rubles and from a cubicle that he rented. In it, he began to fix computers. This happens if you do not have rich relatives who can help with the start-up capital.

Thus, the first source of business financing is personal savings of citizens... This is the money that you put in socks, or in a box, or in a piggy bank.

Second source business financing are investments. An investor can invest in your company, firm, or personally in you, if he sees potential in your business. Of course, the investor is also taking wild risks. But that's why he is an investor, to risk his money.

For example, everyone knows the history of Apple, so many films about Steve Jobs have been shot! Steve himself called investors to invest in his startup in the garage. In the end, the guys from Silicon Valley were lucky and invested money in them, and they did not lose.

As for Russia, there are many investors in Russia, but they are afraid to invest money, preferring foreign offshore companies and foreign companies.

The third such source serve bank loans. You can go to the bank, and if you have a good credit history and you defend your business plan well, then you can be given a substantial amount.

Another source is government grants. You are looking on the Internet for a government organization that distributes grants for entrepreneurial activities and forward. For example, in our Perm Territory, the Ministry of Agricultural Development has given, and seems to be giving grants to those who decided to start farming.

On this, in principle, the main sources of funding end and non-main ones begin.

Among them, for example, one can single out loans from individuals. For example, you know that your friend has money. You come to him and tell him to lend them to you. And he can give. Or maybe not. And if a person is not your friend, then he can hire bandits to get your debt out of you.

It is clear that this is all some kind of crap, but there are persistent rumors that they have returned. So nothing like that can be ruled out.

Also, the rental of property can be attributed to minor sources. Well, this is understandable if you already have a business and it has some kind of commercial property: company cars, or apartments, or retail space.

Something else important

There is such a task in the Unified State Exam in Social Studies of the second part of the test, in which you need to draw up a plan on a similar topic. By the way, I will lay out this plan now, which I made with my own hand. I do not recommend writing it off directly, because if it is published here, it is no longer unique.

Plan for the second part:

Topic: Main sources of business financing

1. Business financing source concept.
2. Internal sources

• Profit from the rental of company assets
• Financial savings
• Profit from the sale of company shares

3. External sources

• Bank loans
• Investment funds
• Public funding: e.g. through a grant system

4. Financing a business as a condition for the success of its functioning

5. Business planning as a condition for providing business financing

I think you got an idea on this topic! Share the article on social networks, and also join our Vkontakte group.

Best regards, Andrey Puchkov