Your company has a new project, but how to find money for it is a big question. Perhaps you are just starting your own business, and you have nothing but an idea. And for its implementation, initial capital is required. Where can you find it?
Instructions
Step 1
If you already have a running business, try to find money within it. To do this, it is necessary to analyze the current spending, isolate those without which it is quite possible to do. Look for costs that can be drastically reduced. See which payments are actually deferred. Calculate the freed up finances and compare them with the necessary expenses. If it is possible to make some investments in parts, do not neglect this opportunity. Consider leasing when it comes to purchasing some equipment. Or set up a savings account where you can use your savings. A good budgeting process can help you make your financial decisions more focused.
Step 2
Find an investor or business angel. This method is also suitable for start-up companies that cannot yet show any balance. In this case, a well thought out business plan is required. You can find investors either on special forums dedicated to start-ups or venture capital investments. Real search with the help of specialized intermediary firms, and posting information on various thematic resources on the Internet. As a rule, the investor waits for the transfer of the rights of a part of the business as a guarantee. And usually we are talking about a controlling stake.
Step 3
If you can present a decent balance sheet of the company, then apply for a bank loan. Financing conditions change following market conditions and depend on the reliability of the borrower. During a crisis, interest rates may turn out to be unattractive. But you are not diminishing the share of your business. True, if you do not cope with the loan repayment, your business will still be under attack.
Step 4
Take advantage of the opportunities in the securities market. If you have a joint-stock company with a significant amount of authorized capital, an additional issue of shares will be the way out. Alternatively, you can issue bonds with a specific yield. But the activity on the securities market is strictly regulated, and entering it requires a lot of time and money to go through all the necessary procedures.
