The crisis made establishing a company become a titanic task. The banks did not finance entrepreneurs, and companies had serious problems getting ahead.
Luckily, things are recovering. New formulas have helped create a company and finance it so that it is sustainable. It is an excellent time to start a business, but remember that you should only do it with a good business plan that guarantees the viability of your business project.
Below, we explain five ways to find financing to create a company with peace of mind, guarantee, and efficiency.
1-Investment funds
With the economic recovery, new investment funds have begun to arrive in Spain. They come from all over the world and are looking for new companies to invest in. They are very interested in start-ups but are open to any business.
You will have to prepare your business plan well and present it to investors. Obviously, these will take control of part of your company, but they will also help you through the first years.
2-Banks and savings banks
They remain reticent but are increasingly open to the possibility of investing. If you present them with an interesting project with sustainability options, they will help you achieve your goals.
Of course, since the loan is financed by a bank, you will have to meet the monthly payments stipulated for the loan.
3-Crowdfunding
A way to finance new companies that have more followers every day. There are web pages specialized in getting investors for your company, and it can be a great solution if you have not been able to finance yourself in the two previous ways.
Two more ways to finance your company exist, but they depend on your work situation and the situations of those you know.
4-Capitalize unemployment
It is a perfect case for those who are unemployed and have a good business idea. They can ask for an advance of their unemployment benefit to set up the company.
It is also a good option to find someone in that situation and set up the company halfway with them. Of course, the financing possibilities are not infinite; they are limited to the amount of unemployment that the unemployed investor must receive.
5-Family and friends
It’s heartening to know that many businesses have taken flight thanks to the support of friends and family. If you’re venturing into a small business, you might find the financial backing you need from your own circle.
They can join as partners or lend you money to get started. In both cases, this can be a good solution for your lack of liquidity when starting your business.
As we’ve stressed from the start, having a well-defined business plan is crucial before you start seeking financing. Here are some final tips to help you craft a comprehensive plan without any hitches.
6-Final advice
Think that starting a company is different from playing poker. Don’t try to start like crazy, as you will fail miserably. You should only start a business adventure if you have detected a business possibility.
Study your competition well to see if you have a place in the market. To get investors, you must sell your business very well; keep the following in mind when preparing your business plan:
- Employees: a company with one worker is not the same as with five; keep this in mind when preparing the investment.
- Infrastructure: you must take into account the machinery you may need, computers, website, etc.
- Workplace: you can work from home or at a location. The expense will not be the same.
- Services: electricity, water, internet… don’t stop calculating anything so that you won’t get any unwanted surprises.
- Taxes: having an SME usually entails several taxes. Incorporate the company, corporate tax, etc. Don’t leave anything to improvisation.
Now you know how to get financing to create your company and we hope to have helped you.
If you need to know more, you can consult our service Constitution of Companies.
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