Starting any business requires a clear understanding of “how it will work,” formally called a business plan. It is not difficult to draw up a business plan, but certain knowledge and skills are definitely needed.
Start with what kind of product and how much you plan to produce. At this stage, let's digress from the fact that the "limiter" of a large business is not how much you are able to produce, but how much you can actually sell. For now, we will assume that all the goods produced will be sold. Determine the maximum revenue. This is the "Income" column.
Next, calculate your business costs. Costs are divided into one-time and regular. One-time costs include the cost of purchasing equipment, all that in Marx's political economy is called “means of production.” Regular costs include monthly and annual costs, such as wages of workers, fuel and lubricants, low-wear and low-value inventory, raw materials, taxes. Calculate the "Consumption" column. When calculating, do not forget to calculate taxes. As practice shows, it is taxes that can take away the brightest ideas at a loss.
Combine debit with credit for the year. Calculate your profit. Profit according to all generally accepted formulas of political economy is considered as the difference between income and expenditure. Don't get into the deeper jungle at this stage; if the difference is positive, then think further. If, taking into account all expenses, the annual profit will be more than a third of the amount required to open a business, then you can select a bank to which you can apply for a loan. There are no other options. The widely advertised program of grant support for small and medium-sized businesses, carried out by the Ministry of Economic Development, concerns only businesses that have existed for at least a year, and 50 thousand per year for each registered unemployed employed received from the Employment Service is not the kind of money that can be used to start a business. When calculating the loan amount, you must strictly take into account that the salary is paid monthly, and the first income, especially in agriculture, can come to you in six months.
If everything looks very, very attractive and viable, then make a list of what you can provide the bank as liquid collateral. Advice - never risk your apartment. The bank will accept this collateral, but in an unfavorable combination of circumstances, you can lose everything, or rather the last. Therefore, from the list of possible collaterals for the bank, immediately and categorically exclude your own home. Put yourself in the shoes of a banker and you will immediately understand what can be suitable for a bank as a liquid collateral. The bank trades in money, not cars, land plots, apartments, etc. And he does not need extra costs associated with the possible liquidation of the pledged property. It is from this point of view to consider the property you have.
Finally, a "little trick" - make your business plan as solid as possible. Inside, under a beautiful cover, there may be only numbers, but this will make a greater impression on bankers than the most beautiful verbal justification of the project on 10 pages. By the way, it should also be present, but remember that few people read more than the first three sheets.