It all starts with an idea. You may still be in the planning stage or you may have just started your business. Setting up your business is a very special experience that is close to your heart. However, since money is the sinews of war, you will need to raise a certain amount of money to ensure the sustainability of your project. But rest assured, there are potential sources of capital for your business. Let’s take a look at the different sources of financing, with the association 100 000 entrepreneurs, a member of the ETHIC movement chaired by Sophie De Menthon.
Personal investment
When starting a business, the first investor is you. The personal investment can therefore correspond to your money or to a personal asset that you put up as collateral. Investors like to see that you are fully committed, as Sophie de menthon points out.
Money from loved ones
It is money lent or invested by family members or friends. This is what some investors call patient capital because repayment is less likely to be demanded in the event of a problem.
Grants
A grant is a sum of money given under conditions by government agencies. You do not have to pay it back if you use it according to the terms of the grant.
Financial Angels
Business angels are usually wealthy individuals who invest directly in small businesses. They usually make small investments and also offer you their experience and networks to help you succeed. Indeed, they are often former entrepreneurs and their advice is therefore very valuable.
Venture capital
Venture capitalists invest in the most promising early-stage companies in high-growth, technology-driven sectors. They take equity stakes in companies to finance the higher risks that are present in the early stages of development.
They invest larger amounts than angel investors, typically more than €1 million, and expect to earn a higher return.
Loans
Traditional bank loans are difficult to obtain for start-ups. But it is still possible, as some government programs guarantee loans from financial institutions to entrepreneurs. There are also organizations that specialize in lending to new businesses. For example, if you are a young entrepreneur, ask about the ACCRE and the Créa Jeunes coaching program.
You may have to combine several sources of financing to get the money you need. Keep in mind that you will have to convince people that you have a good business idea and that you are the right person to make it a success. So you need to have a solid business plan and show commitment and determination. Because your business, whatever it is, is your gateway to a bright future.
