A venture can be designed even on a napkin, but finding the resources to fund it and keep it alive is another story.
Starting a business can be difficult and one of the reasons for the failure or the low percentage of sustainable projects over time is the lack of financing, here we tell you about two tools that you could implement in your venture or project.
One of the most complex moments when starting a business is when you see the need to find financing for your venture, getting options is complicated. Because when it comes to entrepreneurship, having the financial muscle to leverage your proposal is more than necessary.
There are some experiences, where the first steps of a project are taken with the resources of the entrepreneur. But at some point it will be necessary to seek external financing, either to expand the business or strengthen the existing one.
But if your project is in its infancy, it is necessary to locate and manage before an institution a financing that allows you to start in the business world. The State promotes various programs to accompany and finance productive projects. Most of these institutions are linked to ministries in the productive area.
Entrepreneurship has never been more fashionable:
more and more people are starting businesses on their own initiative. However, financing a project is not always an easy task. There are more and more ways to find funds and start a company, so knowing the different options will allow entrepreneurs to adopt the form that best suits them according to the needs of their business.
Financing options for entrepreneurs
The alternatives that entrepreneurs have to set up that small business they have always dreamed of are diverse, but they require them to take the time to plan where they will request them and how long it will take them to recover what they invested.
- Family, friends and savings. They are the first option, but you should consider that setting up a business is a risk, so you do not want to decapitalize or lose the money of others.
- Crowdfunding. They are platforms where you can publish your business project and if accepted, you can access networks of investors, donations and specialized credits.
- Venture capital funds. They are available for so-called start-ups that have potential, but high risk
- Government funding. They are public sector resources aimed at the entrepreneurial ecosystem. You can consult the National Institute of the Entrepreneur (Inadem) or institutions such as Nacional Financiera to know the bases and access this type of support.
What are the common mistakes for financing entrepreneurs?
When we have the idea of a business, the most important thing is to plan it well. We must avoid asking for money,when we do not have insurance for the project or the resources we have to materialize it.
Entrepreneurs must be clear about what problem they are solving with the business they want to set up and how they will achieve the return on investment. If you are not clear, it will be difficult for you to be subject to credit. In the worst scenario, even if they lend you the capital, if you have no way to recover the investment, you can end up even in a situation of default. .
What to do if I get into debt with financing for entrepreneurs?
If you’ve already risked your savings and gone into debt to run your small business, but can no longer pay your creditors,then maybe it’s time for you to think about the options you have to regain the health of your finances.
If you are already in the Credit Bureau and the collection offices torment you to face your financial commitments,but in the business you no longer go out even to pay the employees, then maybe it is time to approach the experts who help you get out of that situation.
The credit repairers with allies for those debtors who by a bad streak fell in the Bureau, but want to recover as subjects of credit. It is a company with specialists in negotiating with creditors.
They also design savings plans for their clients that allow them to cover the amounts owed to financial institutions. In most cases, debtors cannot cover the total amount of money they asked for and the interest they caused you to stop paying. However, there is the negotiation by “quita” that offers both parties to reach an agreement to settle the debt if a percentage of what is owed is covered.
Each case is different, so it is best to ask for an appointment with an advisor to review your situation and propose what is best so that, according to your income,you can find the best way to plan the way to pay off your debts .
Tips for attracting capital for entrepreneurs
To attract capital for entrepreneurs you must achieve some goals and fit into some characteristics that are generally valued by those who are willing to invest money in your company. Learn about some of those goals below:
- Fully commit to the business.
- Dream big, trust yourself, and have the ability to realize those dreams.
- Demonstrates competence to solve problems.
- Always remain open to new knowledge and demonstrate willingness to learn.
- Have the ability to take risks and a willingness to bear the consequences.
- Make a prototype and launch your idea
- Focus on innovation and always keep an eye on the market.
- Assemble a committed team, even if it were small.