how to start a business

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Your own business – who has no such idea in mind? And yet, from the first thought of entrepreneurship to business registration and success, there is a long way to go. Opening a business is relatively easy, but the viability of a new business depends to a large extent on a well-thought-out development strategy. If you are also thinking about how to start a business from this article is for you – read, remember useful information and take the first steps in the direction of your dream!

How to start your business from 3 basic steps

Superhero team: You and your members

Every company’s success story begins with a non-trivial business idea. Sometimes the author of an idea is one person, but very often the foundations of a company are formed by at least two. Very useful if budding entrepreneurs have education in various fields, such as business management and marketing. If you feel that the business idea you have come up with is not complete, you are definitely looking for support among friends. Who knows, maybe your fellow student will have an idea how to improve your idea!

Ideas and motivation for starting a business do not come out of the blue. Think about which business sectors are closest to you and at the same time – the most in demand in society. For example, you are wondering how to start your online business . There are hundreds of online stores, so another store that sells electronics and cosmetics may not be successful. On the other hand, an online store that is targeted at a specific audience and sells goods that cannot be found on other trading platforms can bring success in the short term.

Business Ideas – the most important document of a future company

What you need to know when starting a business ? That business ideas the key to your future success. It is the business plan that shows the viability of the business idea and the growth potential of the future company.

You can find many different suggestions on how to develop a business plan on the Internet, and we will only remind you of the basic guidelines:

When thinking about how to start your own business step by step , remember that a business plan is neither a creative advertisement nor a dry report. When writing a plan, make it attractive to potential investors by sticking to business communication standards!

Final stage – Register of Enterprises

In Latvia, three forms of business are distinguished: sole proprietor, partnership and capital company, which in turn is divided into a joint stock company and a limited liability company. In order to register a company, you must submit a package of documents to the Register of Enterprises, which must include:

  • application in the appropriate form;
  • a written permission of the owner of the real estate to register the legal address of the company in the relevant property;
  • a receipt for payment of the state fee;
  • receipt for the official publication in the “Latvijas Vēstnesis”.

In addition to these documents, you will also need others, depending on the type of business you have chosen. For example, in order to register a limited liability company, the memorandum of association, the company’s articles of association, a statement of payment for the share capital and some other documents must also be submitted. See the full list on the website of the Latvian Development and Investment Agency .

This is the end of the very first stage of establishing a company – when all the formalities have been completed and the fees have been paid, you can legally call yourself an entrepreneur. But in reality, the most difficult and interesting thing is just beginning, because you have new challenges ahead of you. How to attract funding? Where to look for investors? How to position your company among competitors Let’s try to find answers!

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3 sources of money for your business

How to start your own business without money ? This question is asked by a large number of budding entrepreneurs. In fact, only a small percentage of entrepreneurs manage to avoid attracting investors in the early stages of their business. Business requires money, and the sooner you learn to communicate with potential investors and financial partners, the faster you will adapt to the new environment. Here are three business financing options available today!

  1. Business loan

Loans to entrepreneurs are granted not only by banks, but also by non-bank lenders . Business start-up loans are available:

  • without collateral – if the amount claimed is relatively small, the company has a viable business plan and the creditor is confident in the success of the company;
  • against collateral – if the loan amount is significant and / or the creditor sees risks in granting the loan.

A business loan can also be available as a line of credit. Unlike a regular loan, which is transferred to the borrower’s bank account in full, a credit line allows you to withdraw the necessary amounts as needed, within the granted credit limit.

Non-bank credit for business is one of the fastest forms of financial support, as applying for a loan takes place online. However, take into account that the loan offer is developed individually, so it takes more time to process the application than in the case of other online loans.

  1. EU structural funds

One of the European Union’s priorities is to promote entrepreneurship, which is why the EU Structural Funds allocate significant financial resources to young and existing entrepreneurs every year. In Latvia, EU funds are available to entrepreneurs through the state financial institution ALTUM. ALTUM offers several business support programs :

  • start-up loan;
  • microcredit;
  • start-up development fund;
  • start-up venture capital, etc.

In order to receive financial support from EU funds, an entrepreneur must meet the requirements of the funds, for example, promote employment, combat social exclusion, improve the state infrastructure and overall competitiveness.

When thinking about what kind of business to start in the countryside , be sure to pay attention to what types of companies can receive EU support. Agricultural and fisheries companies have a good chance to get a loan with EU funds, as well as social entrepreneurship start-ups, companies promoting cross-border cooperation, start-ups .

ALTUM’s target audience can receive financial support on friendly terms, so it is worth applying for a loan if it meets the criteria of EU funds.

  1. Private investors

Called business angels, private investors are experienced entrepreneurs who invest in other people’s projects. By working with business angels, young entrepreneurs gain several benefits, such as:

  • prompt and substantial investment;
  • entering the circle of investor contacts.

However, keep in mind that getting private investor support can be more difficult than a regular business loan. The investor invests personal funds , so you need to interest him and convince him that your project has rapid growth potential. A well-developed business plan will help to accomplish this task.

As you can see, the answer to the question ” how to start a business online from scratch ” is nuanced and saturated. Every new entrepreneur has several options for financial support, but a successful business requires not only money, but also knowledge.

There are no modern business ideas or can give clear advice on how to start a business. But we can help you find a suitable loan for the growth of your business, and that is not a small amount. Thinking of how to start your business from scratch in Latvia? Find out what loan companies are available for and choose if necessary financial support!

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