If you are an entrepreneur, surely you have asked yourself the following question some time: How to boost my business ? And probably you have done it in two different phases: at the time of starting the journey of your company and when the activity was already underway.
Financing and microfinance
In both cases, financing and microfinance are two fundamental elements to get ahead. In this article we give you some tips on where to find them and how to use them in the best way.
How to create my business: financing to undertake
In the phase of creating a business, there are many obstacles to overcome and many procedures to be carried out. Some of them are to draw up a convincing business plan, obtain all the administrative permits to carry out the activity, form a sustainable staff, and, of course, obtain the necessary financing to start the business. In this case, everything adds up and any help is welcome. Therefore, here we indicate some ‘doors’ in which you can touch:
- Public Administrations : City Councils, Provincial Councils, Autonomous Communities, Ministries, Central State … The Administration, at any of its levels, supports entrepreneurial economic activity, knowing that entrepreneurs are a source of wealth. The forms of aid are very varied: from direct aids to lost funds to tax exemptions, through capitalizations of the unemployment subsidy and many more.
- Sectoral associations : Chambers of Commerce, groups of self-employed or cooperatives of professionals are some of the organizations that have their own funds to help entrepreneurs. And again, the forms of help are very varied: free courses, discounts on machinery and furniture, etc.
- Help to social groups : some groups, either because of their vulnerability, their traditional discrimination or any other obstacle, receive compensatory aid from public institutions, foundations or private entities. Women, immigrants or young people under 30 are some examples.
- Private financing : here bank loans are included and those granted by the ICO through these. It is an option to analyze when the amount of quick loan that must be requested is very high, which also involves an extensive bureaucracy and usually very demanding requirements.
- Online funding : provided by online websites, such as Magic Lender . It is a good solution when you want to request a low or medium amount (up to € 750 in our portal) and you need to have it in an immediate term (in just 10 minutes you can receive it in your bank account).
How to boost my business: financing and tips to get ahead
“My business is already underway, but I need liquidity.” It is another phrase with which many entrepreneurs, entrepreneurs and professionals in general will be identified. If this is your case, the first thing you should do is analyze the situation: is the lack of liquidity due to a problem of lack of income or is it simply a specific and temporary situation? If your answer is the first (insufficient benefits), the business has a problem: you must rethink your business strategy and carry out the necessary reforms to make your activity sustainable. If your answer is the second (your business is relatively good and you need liquidity to make a timely payment), then you have many options at your disposal to get this little boost that drives the business, either through financing or other decisions operational. Take note.
- Bank loans or ICO : again, it can be a solution when the liquidity needs are large, such as the payment of workers’ payroll. And, as you will understand, it is not advisable to borrow too much, unless you are waiting to receive a large payment to make this operation sustainable.
- Microcredits : it is a very suitable solution for specific treasury problems, because they are immediate and the quantities that can be requested are small and medium, which are assumable by the vast majority of businesses.
- Defer payment s: it is a measure that you can consider with respect to the payment of taxes, mainly. If you think that deferring or splitting the payment of VAT or Corporate Tax (IRPF in the case of self-employed workers) can be an aid, get informed in the Treasury delegations or speak with your advisor on this matter.
- Outsource services : to conclude, a new question that many entrepreneurs ask themselves: “Can my business work in the same way or better if I outsource services?”. Having your own employees is probably a guarantee of confidence and allows you to control more closely certain processes of your business activity, but it is also more expensive, especially due to the tax and Social Security charges that each payroll implies. Therefore, you can consider outsourcing certain services, either through supplier companies or through autonomous professionals, in such a way that these charges are assumed by them. In that case, you will only need to control that this outsourced service is performed correctly and within the deadline.