A budding entrepreneur starting a business has to solve a lot of complex problems. You need to prepare a business plan, find a room, think over a product concept. A lot of business problems rest on the issue of financing. At the first stage, it is important to correctly calculate the needs of the future enterprise in cash.
Initial costs of setting up a manufacturing facility
Most often, a business enterprise is organized for the production of any goods or services and their direct promotion to the market. It is rather difficult to give universal recommendations regarding the amount of funds that will be required to organize a traditional business. Much here will be determined by the nature of the business and the scope of the proposed activity.
The biggest expenses await an enterprise focused on the production of goods. In this case, the initial capital will be needed for the purchase or lease of production areas, the purchase of equipment, the purchase of the first batches of raw materials.
Depending on the idea of a businessman, start-up costs can range from several tens to several hundred thousand dollars.
You can reduce the amount of initial funding if you optimize the production process by eliminating a number of ancillary operations or transferring them for execution to an outsourcing company. The equipment you need does not have to be purchased; at the first stage, some of it can be rented or leased.
Other types of business
Buying a ready-made enterprise based on the principles of franchising can save an entrepreneur from a lot of organizational worries. A franchise is an agreement that gives the right to use a trademark and a set of exclusive rights to a certain type of product. Such enterprises are provided by the franchisor, that is, the copyright holder, to entrepreneurs on a turnkey basis. Such a business organization makes it possible to significantly reduce overhead costs.
If you wish, you can find a franchise on the market that costs no more than $ 10-15 thousand.
To open a trading enterprise, you will need a much less impressive amount. The main costs here will be required for the purchase of the initial batch of goods. After its implementation, the entrepreneur will have working capital at his disposal, which can also be put into business, gradually expanding it. Practice shows that the organization of an enterprise focused on the sale of the most popular goods, for example, everyday items, requires only a few thousand dollars.
It is even more attractive for a beginner to open an enterprise for the provision of any services to the population. This can be, for example, different types of counseling: legal, psychological, organizational. Such a business will require the minimum financial investment required to cover the cost of renting an office, for the purchase of office equipment and consumables. To start a small business for the provision of services, there may be enough funds that the state, represented by the Employment Centers, allocates to novice businessmen in the form of a subsidy. To date, the amount of such assistance is almost 60 thousand rubles.
