How to get capital for their own business

Posted April 12, 2016 by Emma
Coins idea

How to get capital for their own business?

Do you dream about ramping up your own business, but lack the capital to implement its business idea? Nothing is lost. Money to start a business you can get at least a few sources. For the most persistent young entrepreneurs waits up to 700 thousand. zl to start.

The EU will give 40 thousand on your own company

Even 40 thousand. zl budding entrepreneur may receive through Measure 6.2 of the Operational Programme Human Capital. People thinking about starting a business in addition to one-time financial assistance also receive a bridge support, paid monthly for 6 months in the amount of 700 zl. An additional benefit of this program is the opportunity to participate in training to enable knowledge and skills needed to start and run a business.

The program is addressed to individuals intending to start business activities (excluding persons who have a registered business in the period of 1 year prior to submitting the application for support under the project), including, in particular:

  • unemployed for at least the next 12 months in the last two years;
  • women (especially returnees and entering for the first time the labor market after a break related to childbirth and child upbringing);
  • persons under 25 years of age;
  • persons with disabilities;
  • people over 45 years of age;
  • people living in rural areas, in rural, urban-rural and urban areas and the urban population to 25 thousand residents.

  • After the means to spin a young business entrepreneur needs to go to one of several regional operators. These institutions commissioned by the provincial labor offices carry out competitions in which grants are awarded for your own business. The list of regional operators provide regional employment offices.

    The grant from the labor office

    Capital to set up your own business can also be obtained from the District Labour Office. In that institution to the person dreaming about business waiting for as many as 19 thousand. zl (500% of the average wage) to start a business. Trying to money for your own business we are entitled to the right to apply for reimbursement of legal assistance, consultation or advice regarding the business activity in the amount not exceeding 80% of documented costs, but not higher than the average salary. To receive financial support is necessary to meet several conditions. The most important of them says that a person who wishes to apply for a non-refundable grant application must have the status of unemployed. In addition, it is important that the person applying for support in the 12 months preceding the application being unemployed did not refuse, without reasonable cause, to accept a proposal of suitable employment, other gainful employment. Detailed information about the grants provide local labor offices.

    Money for online business

    People with an interesting idea for a business on the Internet can obtain capital on the implementation of its project with special activities 8.1 Operational Programme "Innovative Economy". With this action the young entrepreneur can receive up to 700 thousand. zl to start your own e-business. The subsidy can count start-ups and young projects (to the market) consisting of electronic services and projects that may lead to the production of digital products. Note, however, that 70 per cent. expenditure is covered by the support. The remaining amount of 30 percent. expenditures young e-business has to meet from its own resources. The next call for proposals under Measure 8.1 launched in July and the detailed information can be obtained Polish Agency for Enterprise Development and Regional Financial Institutions, which is the regional partner of PARP cooperating in the implementation of programs targeted at micro, small and medium-sized enterprises.

    Angelic capital

    Difficult but attractive way to raise capital may be business angels. These are the people and institutions in exchange for a certain percentage of shares to invest in interesting projects. Support to small and medium-sized enterprises at the stage of their formation (start-up) or in the early stages of development. Taking care of discretion and anonymity are co-owners of companies in exchange for the contributed capital to them. The projects in which they invest must be characterized by high growth potential. With the invested funds business angels expect for extraordinary profits.

    Usually operate in industries where the know and in which earlier were successful, which means that in addition to the capital to bring the company valuable experience. Unlike venture capitalists, business angels attach less importance to the precise and formal analysis of the project, but rather in the project need to see that "something". The company acts as a kind of mentor who brings to her business contacts, reputation, knowledge of the industry and market. Often, these elements constitute the company's value more important than money. In Poland there are several institutions associating business angels.

    Incubators

    A relatively new source of capital for their own start-ups are incubators of technology, which measures the activities acquired from the EU Measure 3.1 "Initiation of innovative activity". These institutions into a single project may invest up to 200 thousand. euro. Typically, they are investing in the ideas of the areas of Internet, telecommunications and mobile. Representatives of these funds ensure that it is enough to report the idea and the rest of the young entrepreneur will do with the support of experienced experts incubator. Incubator helps create a professional business plan, supports the development of the marketing strategy of the new company.

    - To start the talks is needed above all for a good business idea. This does not mean, however, that the negotiations can proceed without preparation. To incubator can make faster decision originator should have thought the business model of the project, versed in market competition, have an idea to build a team - says Jaroslaw Obara from the incubator Ventures Hub. We are looking for ideas, projects, concepts, ideas, prototypes, which have the potential to develop and bring with them the opportunity for commercialization - adds Stanislaw Rogozinski incubator Trinity Adventure.

    Perhaps seed fund?

    A similar model of cooperation prefer seed funds. Their activity is something between business angels and Venture Capital. They invest in both ideas and existing companies in the early stages (seed). These are not charitable institutions because the only motive inducing them to invest is possible to obtain a high return on invested capital. Time exposure depending on the design varies from 3 to 7 years. The object of their investments usually are technological projects.

    The fund will help micro

    A young person who is over 12 months can also take advantage of tender prepared by the Micro Fund. The main objective of the Micro Fund is to support the development of micro-entrepreneurship by providing financial resources in the form of loans to small business owners who have problems obtaining a loan or credit in the normal bank. The fund micro grants low-interest loans to develop their own business.

    Depending on whether the applicant is the support person is new or a regular client can obtain from 150 thousand. zl up to 300 thousand. zl loan. While 5 thousand. Existing for more than one year the company can obtain without a formal business plan, based on only the NIP, REGON and entry in the register. On funduszmicro.pl can learn the principles of granting financial support.

    Put your company in a small town

    Even 300 thousand can get people who want to start a business in a small town or in the countryside. To get the amount of support the new entrepreneur will have to create 3 jobs. Applications for EU money for micro young entrepreneurs may be submitted in the regional branches of the Agency for Restructuring and Modernisation of Agriculture.

    To help get funds for your own business in the countryside and in the small town of the Ministry of Agriculture introduced the well-known from other programs, evaluation of proposals. Reduced have also been prescribed thresholds for the creation of new jobs. Currently, in order to win 100 thousand. zl subsidies, the company needs to hire 1-2 new employees. For grants in the amount of 300 thousand. zl enough to create three new jobs. Note, however, that money is paid as a reimbursement of half the cost.

    As you can see young people who are looking for capital to start a business in the absence of the offer should not complain. The decision which way to finance their own business should choose to aspiring entrepreneurs. Now you can roll up your sleeves and move the money for your own business.