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WHAT needed initial capital to start a business

What is needed initial capital to start a business

Aspiring entrepreneurs, start creating a business, we have to solve a lot of complex tasks.

It is necessary to prepare a business plan, pick a room, think about the concept of the product.

Many businesses run into problems with the financing question.

At the first stage it is important to calculate the future needs of the company cash.

The initial costs of opening a manufacturing facility

The most common business venture organized forproduction of any goods or services and their direct promotion to the market. It is difficult to give generic advice on the amount of funds that will be needed for the organization of the traditional business. Much will depend on the nature and scope of business proposed activities.
The biggest expenses the company offers,focused on the production of goods. The initial capital in this case you will need to buy or lease production facilities, purchase of equipment, the purchase of the first batches of raw material.

Depending on the plan businessman start-up costs can range from a few dozen to several hundred thousand dollars.

Reduce the size of the initial financing can be,if you optimize the production process, eliminating a number of auxiliary operations or transferred to a performance in the outsourcing company. The necessary equipment is not necessary to acquire ownership of, the first phase of it is quite possible to rent or lease.

Other business

Rid entrepreneur from manyorganizational worries can buy ready-enterprise based on the franchising principle. A franchise is a contract that gives the right to use the trademark and the system of exclusive rights for a certain type of product. Such enterprises franchiser, ie the right holder, provides entrepreneurs in "turnkey" condition. This organization enables the business to significantly reduce overhead costs.

If desired, you can find in the market value of the franchise is not more than 10-15 thousand. Dollars.

To open a commercial enterprise, you will needmuch less impressive amount. The main costs are required for the purchase of the original consignment. After its implementation in the disposal of the employer will be the working capital, which will also be put to use, gradually expanding it. Practice shows that for the organization of the enterprise, based on trade in the most popular goods, such as items of daily demand, it takes only a few thousand dollars.
More attractive to novice openingCompany to provide the public any service. It may be, for example, different types of counseling: legal, psychological, organizational. Such a business would require minimal financial investments needed to cover the office rent costs for the purchase of office equipment and consumables. To start a small business to provide services may be enough funds to the state represented by the Employment Centers allocates novice businessmen in the form of subsidies. To date, the amount of such assistance amounts to almost 60 thousand. Rubles.

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