Financing self-employment

The most unpleasant but also the most important aspect of the foundation is certainly the financing of your own independence. The business concept is at the beginning – without it you will not receive financing. From a financial point of view, however, becoming self-employed is always a delicate matter that should be well considered and calculated. There are many programs, grants and subsidies to promote self-employment. These ensure that a founder with a good idea does not fail due to lack of funds.

Start-up financing – opportunities and hints

Start-up financing - opportunities and hints

If you want to be self-employed, you have a more or less large capital requirement. No matter if you have invested in devices etc. or need only money for the difficult initial phase, without equity it will be difficult. Below, I will introduce you to the various financing options for entrepreneurs. So you do not necessarily have to put much in office supplies or equipment.

But it takes time to earn money with your own website. Again, funding is required. More classic financing options that company founders can access. Of course, it is very easy if you have enough capital to cover start-up costs and / or reduce time to profitability.

However, this is usually not the case and young company founders often have only limited economic requirements. In addition, you should always check whether it makes sense to invest your own funds completely or whether you would rather have an “emergency penny” in the backhand. Many entrepreneurs go to their bank to finance their business idea.

In addition to comprehensive documents (business plan, etc.), this also requires backups that many can not afford. A personal loan is also conceivable, if someone from the family or the circle of friends is willing to borrow the capital. However, it should be remembered that friendships end up with funds. However, irrigation doses have been cut from previous years, so today there are very special funding programs that are only suitable for certain start-ups.

Moreover, capital is more for the standard of living in the first phase of the creation than for the investment. For the funding examination for entrepreneurs and self-employed. The leasing business is a special form of financing. You can rent production facilities, facilities, equipment and more today. Of course, this has the disadvantage that you do not have full economic capacity at the beginning.

However, the extent to which it pays off economically to the bottom line must be discussed on a case-by-case basis. Financing through a partnership is also conceivable. These can be both active partners who bring funds into the business, as well as tacit shareholders who only invest funds and thereby take over shares in the company. However, venture capital is usually only for larger start-ups, but not for “normal” self-employed.

The following graph shows that the composition of financial sources has changed in recent years: Among the “other” sources of finance are those that I present below. The following financing options are not so extensive. Foreigners donate relatively small sums for an interesting business idea or other financing project.

If enough of many small lenders come together, then the total loan is a success. Senduko * focuses on private projects, while Auxmoney * negotiates loans of up to $ 25,000 for the self-employed. Of course, these loans are particularly attractive if you do not receive a loan from your bank. Starting at 100 USD, private individuals can co-finance a start-up idea there.

However, a promising and special business idea is needed here. so that they can realize something concrete. In return, you usually receive certain merchandising items and of course, often the final product. If the company has not brought the device to market, you will not get back your credit. Unlike crowdfunding, Crowd Investing gives you stock of the company you are financing.

Successful financing, as well as crowdfunding, pays compensation to the execution platform.

Microcredits are also very popular and suitable for the self-employed and small businesses. All in all an attractive financing for start-ups. Often, these rather unfamiliar forms of finance open up new ways to build a raison d’être, but it should be clear that you also get funds from third parties here.

It should be clear that alternative funding channels should also be based on a viable business plan. Anyone who quickly procures foreign capital will soon be in debt when self-employment fails. What experience do you have with the financing of business start-ups?

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