Financing your business when you have a very small budget

Financing your business when you have a very small budget


Financing your business when you don’t have a big starting budget is far from impossible. You just have to take things into consideration and therefore revise certain things downwards. In addition, it is important to realize that the aid available is to be considered but is not acquired for all that. So don’t rely entirely on them if you want your business to see the light of day.

A project that is launched does not immediately reach the expected scale. If you have big dreams and can’t afford them, don’t give up, just moderate your aspirations and ambitions . To do this, accept the fact that it is possible not to start out big and become one later, by giving yourself more time.

So start small or up to your initial budget. If you divide the size of your project, you reconcile with the means available. Instead of aiming for an activity rate requiring significant costs, define what it is possible for you to do with the money you have. Thus, launching a small solid project of 1000 euros starting, can convince your banker to follow you by putting as much. You will have doubled your initial bet and gained time and credibility. However, if you had embarked on a pharaonic project with low capital, you would have had much less chance of convincing.

If the nature of your project requires funds that you will not be able to obtain, think of a side project and of lesser scope; A similar activity at a lower cost to raise the necessary funds. So, if you want to open your restaurant, start by being a chef at home. If you want to get into the business, start with meeting sales (no rental fees or inventory management). The ideas are as numerous as they are diverse, it is your mastery of your field that will give you the most insightful ideas and the ones correlated to your activity. In short, keep in mind that you can become big by starting small and that there is a long way to go to your primary goal.

Help and tips for starting a business without spending 

Any leader with even a little bit of the tricks of the trade will tell you that becoming your own boss is not mission impossible. When launching your business, there is a range of financial aid available that can be a real boost. Here is a small selection:

Unemployment benefit capital : any unemployed person can ask to receive the equivalent of 18 months of unemployment benefit at one time. He will be able to reinvest this sum to create or buy a business. A Kbis act (a kind of company identity card) from the Commercial Court will be required for this. In the event of failure of the project, it is possible to switch back again to the status of unemployed while finding a paid job again.

Assedic for starting capital : banks would be more inclined to grant you loans if you have built up initial capital. If the latter is based on your Assedic, this is good proof of your motivation. It is thus possible for you to better negotiate with your banker. Depending on the nature of the project, it is therefore possible to obtain up to 4 times the amount of the initial personal capital.

State aid : the government sponsors certain trades such as personal assistance and insulation work. If you are a home helper, be aware that half of what you pay to your parton is deductible from your taxes. It is the same for the work of insulation of a dwelling and this up to 40%. Employees paid the Smic only represent the equivalent of 20% of salary in employer contributions against 45% for other employees.

Know that if you plan to set up your business in a ” free zone “, you will be exempt from certain charges (salary, employer, taxes) for 5 years. However, at least half of the staff will have to be recruited locally.

If you start what is called an innovative company, you will not have to pay corporation tax. You won’t even have to pay capital gains tax if you decide to resell. This status also entitles you to an exemption from payroll charges for one year for the first employee. You will also be able to claim “advice checks” for an amount 80% lower than their actual cost. These checks will give you access to consulting appointments with professionals such as lawyers or accountants.

Note that there is a research tax credit (CIR) for efforts made in R&D and offering a tax credit of 40% on expenses at this level. This tax aid can, among other things, benefit young innovative companies as long as they enjoy this status.

During the creation of your company, you will be able to benefit from a tax credit of 25% on the capital provided. If you plan to sell your business beyond 8 years of existence, you will not pay capital gains tax. By having set up and grown your business, you can set aside this added value as a kind of small retirement capital.

In short, without considering saving unnecessary pennies, you will always be able to adjust your motivation to the level of your personal capital and the funds to which you can aspire. Aligning your ambition with reality, allows you to start your project faster and more surely. And you, how did you put your business on track financially?

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