This good news is due, in part, to the fact that there are business financing opportunities to open a company and there are policies by the government to support entrepreneurs.
For example, in Mexico, there is the National Institute of the Entrepreneur (ADEM) which is a public body to promote micro, small and medium-sized companies. On the site, there are calls for financing, advice, and education for entrepreneurs and other types of training.
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| Financing your small business |
According to some figures, 33% of entrepreneurs are between 25 and 34 years old. However, the fear of failure means that a third of them do not want to take the big step of opening their own company.
The truth is that the probability that a company does not work could be high since 75% of these companies close before the second year, the reason is for lack of income to keep their business afloat. This could also be due to the lack of experience, poor updating, and training of the entrepreneurial ecosystem, among other factors.
Luckily today there are many alternatives to continue on the path of founding your own company. In addition to government support, there are other alternatives:
Financing options to undertake
According to the National Survey of Business Financing (ENAFIN), the barriers to requesting a loan are the high cost (51.4%), followed by paperwork and complicated requirements (35.4%), and finally the difficulty of verifying payments and expenses (7.8 %).
However, 40% of these businesses have requested resources from companies dedicated to it. So before looking for a loan, you need to question the needs of the business and the financial possibilities you have.
Considering data from the National Commission for the Defense of Users of Financial Services (Condusef) there are five types of financing:
Self-financing
A group of individuals contributes each month an amount that is administered in a trust in which property such as land or commercial spaces can be obtained.
Crowdfunding
Also known as Collective Cooperation, it supports entrepreneurs to create a network that provides them with money and tools to materialize their idea. This network can be made up of friends or family.
In the same way, you can find online sites dedicated to it such as Fondeadora, which today is an accessible bank for all kinds of people, but in its time it helped many young people carry out their project. Another alternative that continues to work is Ideame, which connects entrepreneurs with collaborators who offer small sums of money.
Partners
It is likely that the same idea that an entrepreneur has is another person and they can come together to meet their goals and develop a company. When you have a partner, the risks are less because you share both profits and losses.
A partner can be a family member, colleague, colleague, or people with common interests.
Private equity investment funds or investors
Investment funds are a set of securities such as bonds or stocks. These companies are dedicated to offering to finance entrepreneurs. For this there are calls or you can directly contact the company that offers this service. The interested party sells his idea, and if the investors who accept will contribute resources.
It is worth mentioning that investors in return get a little of their profits until they recover the investment provided.
In general, they do not manage or comment on the company, but this can vary depending on the conditions of each investor.
Financial intermediaries
They are Institutions such as banks, financial factoring, development banking, Multiple Purpose Financial Companies, and more intermediaries.
Government supports
In addition to INADEM, it also has the Support Fund for Micro, Small and Medium-sized Enterprises (SMEs), although it focuses on supporting small businesses, it also promotes the economic development of the country such as creation programs, roads, productivity, sustainability and more. training.
And for young people between 18 and 35 years old, there is the Young Credit program that supports those who want financing with lower or preferential rates. This government project supports with amounts ranging from 50 thousand to 2.5 million pesos.
Before taking this great step, it is necessary to review the papers requested by the institutions, in addition to verifying the conditions, interests, forms of payment and that said body is registered in the Registry System of Financial Service Providers.os (SIPRES) platform that has detailed information on different financial services institutions.
Recommendations to start a new business
According to a specialist on the subject, the first thing that is needed is motivation and patience, since there will be constant ups and downs that will require good character and self-confidence to face them in the best way.
Then there are the ideas, if you have a product or service that is already on the market, you can take a turn thinking about how else the service can be provided and how it facilitates the lives of consumers.
So reviewing consumer trends or news will help you get an idea of what can be offered and the tools to achieve it.
Nowadays it is not necessary to have so many resources because, with the development of new digital technologies and the Internet, you can have a business and manage it from the comfort of home thanks to online stores and social networks. It also helps monitor competition and builds a business image.
Once this will also require a business plan, which helps to meet the business objectives step by step. The market, prices, services, and quality of the product or service that will be provided to users must be included in the plan. The budget is also essential because together with the strategies it allows us to analyze if there is a possibility of success.
It should be noted that a business plan also helps to find investors.
It is advised that you do not mix personal or family finances in the business. In addition, control of expenses and registration of accounting operations must be kept.
You should avoid using your personal credit card to start the business, and consulting with an expert will help maintain the company for a long period.
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