There are many ways to undertake, and one of the most common is through modest projects in its infancy. They are often called micro – enterprises, as only one person is dedicated to it, with discreet billing principles. The investment is not very high, of course, but you still need to finance the project. Let’s look at some ways to get the money.
Summary of the main options for funding
In this article, I will detail several points, with different options to get funding for small projects.
- We will look at the most common situation investment in an entrepreneurial project in this country.
- We discuss funding for personal contribution.
- We study the case of loans from family and friends.
- We value the option of getting online loans.
- We review some public aid.
- We’ll discuss how to design the business to minimize the need for funding
One of the most common options for financing a business project, especially a small project, it is resorting to savings. In fact, statistically, the most common situation is that most of the initial investment in a new business comes from the entrepreneur himself. However, it does not mean sufficient, and often the entrepreneur needs to find other ways of funding.
Friends and family
Many people like acronyms, and the money that comes from family and friends have two terms. One is the 3F, by “Family, Friends and Fools” (family, friends and fools), and the other a little nicer, is the reference to “Love Money”. And the truth is that the inner circle is usually an excellent source to get money, because their motivation is not based on purely rational criteria of profitability and risk, but rather in the desire to help someone they care about. However, care must be taken so that money does not complicate personal relationships. Everything has to be very clear.
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As we are talking about small amounts, I will not discuss in this article of traditional loans, which are often made for amounts that are more significant. Today, it is very easy to access a quick loan, and that is its main advantage: speed and simplicity. Many times, you can get money online in a few steps. But these facilities must be taken responsibly, and the entrepreneur has to be aware of credit conditions, especially the issue of deadlines and interest rates.
Minimize the need for investment
One of the ways to finance a small business is to reduce all that the initial investment can be, for example using machinery second hand, throwing only part of the products and services at an early stage, and more generally, proving gradually business concept progressively to adapt as much as possible to the customer reaction.
Another interesting way is to opt for a business model where the customer advances the money, for example billing bonds. A gym can for example sell a bond of ten sessions; the customer will buy before using the facilities. Another interesting option is a business model based on subscriptions.