Where Do Your Money Come From?

How to solve the problem of venture capital?

Entrepreneurs often encounter such a problem: I am optimistic about a project, but without start-up capital, what should I do?

Seemingly empty and childish problems, in fact, represent the confused situation of many entrepreneurs.

If we sort out this difficult problem, it seems that we can find some ways to find parents to raise money, borrow money, and partnership.

But problems also follow.

Where does entrepreneurial money come from?

Borrow the right money

Du Kaibing (private business owner)

Borrowing money from relatives and friends should be a way for many entrepreneurs to take money.

Because looking for

To borrow money, we must first consider how much it is appropriate to borrow.

What is "fit"?

"Appropriate" is not to be greedy, venture capital 50 thousand yuan and 1 million 500 thousand yuan, in my view, for a first time entrepreneurs, there is no difference.

If all went bankrupt, the survival time would be almost the same.

I can't do it well. The 50 thousand yuan is still going on for a long time by careful calculation.

Starting a business should start from the best possible project.

Then consider your own ability to repay.

If you lose all your borrowed money, how can you pay your debts? For example, if you only borrow 20 thousand yuan, even if you lose your income, you will be able to repay it if you work for a year.

Taking these situations into consideration is actually part of entrepreneurship planning and part of the preparation of entrepreneurial mindset.

A plan to repay money when borrowing money will be more convincing in front of relatives and friends.

Borrowing money should also have an appropriate strategy.

I met a child who wanted to borrow money from my parents and didn't know how to say it.

His family's economic conditions are acceptable. I know his father told him that you would study well and work hard, and I would give you the money to buy a house later.

I suggest that he say to his father like this that even if he wants to buy a house in the future, even if he has 500 thousand yuan, now that I want to start a business, you should give me a portion of the rent in advance, and I need 200 thousand yuan.

I'll ask you for more than 300 thousand yuan later.

If I succeed in business, I can buy a house myself, plus interest to repay you.

It's a failure. After all, I will earn my own house later.

His father listened to the reason, and the children considered it fairly well. His father and son began to discuss entrepreneurship plan two times.

There is also the two generation of entrepreneurs who may be less likely to raise funds.

I have a boss friend said, willing to take more than 10 to let the children toss, long experience and lessons.

But this situation seems to have a low success rate.

Of course, if you can afford it, you will be able to buy experience. If you really learn something, it will be a pre strategic loss. There is nothing wrong with it, but it is not universality.

Saving is the hard truth.

Long Pingjing, general manager of business Road Marketing Company

I am against borrowing money.

The success rate of entrepreneurs to borrow money and start businesses is not high.

Among my several franchisees, the best one is a boss who starts a business step by step.

Maybe it's because of its own money, so it's more prudent to use it.

Because you have to rely on your own savings, at the beginning, you choose not to start a project too large, for example, you need 100 thousand yuan to start the fund.

Then you should ask yourself, "did you save 100 thousand yuan?"

If we quantify a person's ability and measure it with money, it is actually a way.

You have a deposit of 100 thousand yuan, which indirectly indicates that you have the ability to earn 100 thousand yuan.

Using these 100 thousand yuan to start a business is more reliable than doing business together.

If you don't even earn 100 thousand yuan, why do you think entrepreneurship can be successful?

Of course, for newly graduated college students, there is actually no need to borrow money to start a business at a time when there is no 100 thousand yuan.

I know that there are some examples: some professional people, because of their proficiency in business, their abilities are outstanding.

The boss thinks he can make things and reuse them, and finally become shareholders of the company.

This is also a kind of entrepreneurship, zero start capital, but technology and ability to stake.

Now many chain store managers are such a rising path. Even if they want to go out alone, they will have enough savings.

Let's think of the extreme: no savings, no promotion from the boss, and I heard a story.

A penniless person decided to cook, starting from picking up leaflets - apartment buildings often had a large number of food and takeaway leaflets distributed.

He cut off the telephone number that he had printed at the bottom and wrote his own phone again, distributing it again.

A few hundred days a day, he could always get several calls, and then he ran to the fast food and ordered the meal to be delivered.

Earn a small difference in advance.

In this way, he accumulated a lot of money and found a little bit of regularity. His hit rate was higher and higher. At last, he did not need to pick up another leaflet. He could print his own money. Then he did not have to do it himself, but he could find out a guy to distribute it. He trained his skills. Finally, he became a small delivery company.

You see, venture capital can rely entirely on itself, without funds or indirectly by technology and ability, so there is no need to borrow money.

From saving money to start a business, step by step, the chances of success are high.

Using others' money to start a business

Zhou Wenming, director and general manager of Chongqing China Polytron Technologies Inc

Many people choose partnership venture to ease the pressure on the initial stage of capital, more manpower, more than tens of thousands of dollars, 100 thousand yuan, 200 thousand yuan of start-up funds quickly gathered.

But please note that you use someone else's money to start a business - although it's only part of it - you have to face the risk that that person will bring to you.

What you need to consider most is that the more the partnership is, the more risks these people bring. So, how many people are the most suitable?

By observing the partnership venture, I think it's best to have two partners at the very beginning.

Such partnership only needs to consider the matching degree of two entrepreneurs.

What is business matching? First of all, do your two abilities complement each other?

Complementary talent can play the biggest role, otherwise it will easily cause internal friction and waste, short board can not be filled, the overall ability will be discounted; secondly, whether your values are unified; third, whether there is fault tolerance.

Problems and accusations prevarication, so now many partnerships start up and end with friends.

Two people have to consider so many problems. Three or more situations are more complicated.

A and B two people match high degree good relationship, B and C matching degree is high, but A and C may not be appropriate, may lay a foreshadow for future disputes.

So I think at the very beginning, the two person partnership is better than the three.

The two person structure can quickly determine the relationship between the leader and the subordinate. If the company develops, it needs to introduce new partners. Because the master and slave pattern has been set, it is not easy for third people to enter the company.

Therefore, we can not relax our vigilance when we start with other people's money and look at the ease of financing and the pfer of risks and problems from the capital level to the partner level.

Foreign experience:

Borrowing money through the Internet

Overseas, entrepreneurs can also borrow money from strangers through the Internet.

On the Internet, there is a company known as P2P to provide new financing and financial services.

It is worth noting that the interest rate of such borrowing is often high, but it can help enterprises to obtain funds quickly in the credit crunch environment.

Pawn loan

Pawn is a kind of financing method to obtain temporary loans in the form of real property as collateral and real ownership pfer.