Some people may think that there are a lot of idle funds in our society at present, so it is not too difficult to find someone to invest. As long as you have a way to make money, you don't have to worry about no one investing. In fact, this is a wrong understanding. If there are so many investment channels, everyone will be rich. In our society, there are many people who have many ways to get rich and many ideas to start a business, but they don't really start a business. If they had started a business, they would have developed already. The person who said this is that he didn't really do or act. If you really do it, it will never be what he thinks.
Japanese entrepreneur Ri Xiu once said: "Anyone who has money can start a business. The key is how to start a business without money." This really makes sense. If a person really has money to burn, then he may be too lazy to start a business. He just needs to be brave enough to spend it. The purpose of our business is to make money. Therefore, the key is how to start a business with little money. In the early stage of starting a business, from purchasing equipment to building a factory, from purchasing raw materials to paying employees' salaries, all kinds of related procedures need funds. Therefore, no matter how strong your ability is, you must find a way to raise a sum of money at the beginning of your business.
It can be said that the abundance of start-up funds and reserve financial resources is the most critical primary factor for the success or failure of entrepreneurship.
Therefore, when you start a business or start a company, you must have a good financing plan, otherwise everything will be in vain. In the process of enterprise growth, enterprises need more funds to buy assets, pay the increasing wages of employees, buy more production raw materials and maintain daily operating expenses, and at the same time give customers more credit financing, all of which require the financing of funds. The direct influence of good financing ability on enterprises is to increase the amount of funds that enterprises can obtain at low cost.
Good financing ability will also indirectly promote corporate profits. This is mainly achieved in two ways. First, increase the amount of available funds and strive to reduce the cost of using funds; Second, entrepreneurs will seize favorable business opportunities only when enterprises have enough available funds.
Usually, in the process of competition between two similar enterprises, the enterprise adopting new technology will have the upper hand. The history of entrepreneurship has proved this point. However, new technologies and the equipment they need often require a large one-time investment, and enterprises with weak financing ability often do not have such financing ability. Another important aspect is that strong financial strength often brings scale effect.
Veterans who invest in the stock market know that if you want to speculate in stocks, you must not borrow money to speculate in stocks, because using borrowed money to speculate in stocks will change your mentality; Second, you borrow other people's money to speculate in stocks. If the stock is currently rising and the creditor comes to collect debts, you can only sell the rising stock in your hand; If your stock is deeply locked up, obviously at the lowest position, and creditors come to collect debts, you can only sell it. It is for these two reasons that your mentality will change greatly when you operate.
The same is true of entrepreneurship.
Generally speaking, there are several ways and channels for entrepreneurs to raise funds: self-owned funds, borrowing from relatives and friends, and bank loans. It is best to start a business with your own funds, that is, to raise funds through your own savings or by converting your movable property into cash. This is the way to realize the dream of personal entrepreneurship with the least risk and pressure. Because the venture capital comes from oneself, the mentality will be normal in the process of starting your own business, and you will not be swayed by considerations of gain and loss like using borrowed funds. If you succeed, you will prove your talent. If you fail, you will also reflect on your own shortcomings and no longer bear other pressures and pains. However, we must see that it is very rare to start a business entirely on our own funds, because the funds needed for starting a business are relatively large, even for small businesses, which are beyond our personal funds. So be sure to borrow money from others or banks, and use the method of borrowing chickens to lay eggs. This requires entrepreneurs to properly grasp their own mentality, otherwise, the wrong mentality will make you often make wrong choices and decisions.
Raising funds is the most important thing in the preparation stage of entrepreneurship, and all entrepreneurial activities must have sufficient funds to operate.
In the early days of starting a business, I'm afraid there are very few people with sufficient funds. Generally speaking, it is to raise some funds to make the company run first, and then snowball the development of the business. Because the scale and business types of enterprises are different, the amount of funds needed to set up a company is also different. The following points need to be considered: ① Start-up capital: all expenses before the company officially opens; (2) Main business office equipment expenses: store rental expenses, equipment expenses and consumer goods expenses; 3 purchasing funds: funds for purchasing goods from other companies; (4) Workers' wages: in the case of hiring workers, three months' wages should be prepared; (5) Living expenses: You should also set aside three months' salary (basic living expenses); ⑥ Operating expenses: Through calculation, determine how much operating expenses are needed to reach the sales target for one month.
The above estimates the cost of the company at the beginning of operation, which costs a lot, but there is no income. When the funds are insufficient, you must borrow them. The most important thing at this time is to find a guarantor. To put it bluntly, the national treasury and banks are usually very cold to newly-started companies and can't borrow money at all.
Only after a year of hard work can people around you recognize your achievements, and then you can raise funds from the above institutions. In addition, if you do have personal assets as collateral, you can also borrow from national financial institutions after providing a detailed repayment plan. There is also a loan in the name of the guarantee chamber of commerce. There is no recommendation from bank acquaintances, no guarantee from the Chamber of Commerce, and all kinds of procedures are very complicated.
If you want to borrow from government agencies, private banks or financial institutions of private financial groups, you must first make clear whether you have made adequate planning and preparation in financial management, personnel relations, industry knowledge, development possibilities, guarantee ability (personal assets), company business plan, fund use plan and so on. Because no matter who borrows money from, the other party must examine the relevant issues in detail.
The more financing, the better.
As the saying goes, "tigers eat the sky, but they can't eat it." The so-called "tiger eats the sky" means being too greedy and trying to swallow too much food at one go.
However, many entrepreneurs are as prone to this problem as tigers. They always want to raise more money, blindly thinking that the more financing, the better.
In fact, this is an incorrect idea.
For entrepreneurs, financing should follow the principle of "how much financing is needed", as long as it can meet their own investment needs.
It must be understood that "too much to chew", if too greedy financing, is not good for the development of entrepreneurship.