Many people dream of owning their own business and becoming self-employed. However, start-up capital from private reserves is usually required to establish a separate existence.
If you would like to start your own business, but do not have your own capital, your path as an entrepreneur is not blocked. Becoming self-employed without your own capital is not particularly easy. Nevertheless, our tips and our service will help you to realize your plan.
Self-employment without own capital – is it possible at all?
You have a very special business idea, which you would like to implement at all costs. To make your plan come true, however, you need one thing: money. Many entrepreneurs do not take the step of starting a business until they have sufficient private reserves and therefore their own capital. However, you can still implement your idea for a business model if you don't have savings to fund your future venture.
Basically, own capital is needed to start a business. Own capital means all material and financial resources that you yourself or one of your business partners bring into the future company.
Thus, the term own capital includes not only savings, but likewise vehicles, computer technology, and the like. Starting a business is also possible with debt capital.
These are mainly loans as well as credits for self-employed people, which you can take out at a bank. In contrast to your own capital, borrowed capital has the major disadvantage that the money must be paid back according to schedule, including interest. Thus you have with outside capital a higher financial expenditure than with own capital.
Becoming self-employed without your own capital is therefore very difficult. Many banks and institutes, which grant outside capital, require certain private reserves from the carriers.
Thus, raising debt capital without own capital also proves to be complicated. For example, you only often get debt capital without reserves or attachable assets only if there is a guarantee.
Nevertheless, a promising business idea, which is also low-risk, can also ensure that your application for outside capital is granted. For this purpose, it is best to prepare a convincing business plan and present it to your selected credit institution.
Choosing the right business idea
In order to start your own business without your own capital, a suitable business idea is indispensable. Therefore, before you start your business, you should think carefully about what you want to do with your company and whether the idea is promising.
The best concepts for young entrepreneurs without financial reserves are those that require little capital at the start of the business and can be expanded step by step.
If this concept is not for you, you can also try franchising. Franchising contracts allow you to develop different business ideas or to start your own business. -to test concepts. You can adopt the business model of franchising, whereby you already have consulting, further education and training at your disposal.
Especially for young entrepreneurs without a concrete business idea franchising is much less risky. This makes it easier for you to obtain outside capital, so that a franchise business model can also be implemented without your own capital. A franchise is also possible without a master craftsman and a master craftsman's diploma, which means that start-ups can benefit significantly from this business principle.
Raise the necessary capital
You cannot start a business without investing at least some capital. Without your own capital you are therefore dependent on external capital. Basically, you have two options for raising outside capital:
Which method you finally decide on depends mainly on the circumstances and your personal possibilities.
Receive start-up capital from institutions and authorities
In order to receive start-up capital from an authority or institution and consequently a state subsidy, you need a promising and good business idea. In the case of state financing, this is not a start-up grant.
Rather, you will receive support in the form of a start-up grant or a loan of. The financial start-up aid is provided by the kfw development bank. The kfw loan is mainly linked to a good business plan and a profitability forecast.
If you need help with the preparation of a business plan, you can always contact us at business registration.Com apply. We show you how to create it and which points you must absolutely consider.
At the same time, we advise you on your business idea, which allows you to score points in the presentation of your plan. Before your consultation, you can go through our checklist here and clarify important points for you in advance.
The kfw has various funding programs. The receipt of the different programs depends on your business idea and its possible success. With kfw you can
- Start-up money with a grant of up to 100.000 euro
- A regional support program of up to 3 million euros
- An ERP loan of up to 10 million euros
With the start-up money you are entitled to a subsidy of up to 100.000 euros to. In the first two years, however, the repayment may be suspended. You can apply for funding even if you are only self-employed on a part-time basis and therefore do not run your own business on a full-time basis.
If you found your company as a team, the start-up money is theoretically available to each member. However, the promotion can only ever reach a maximum of 100.000 euros per member.
The regional support program, on the other hand, is mainly intended for structurally weak areas. Especially persons who are resident in the new federal states of germany can benefit from the subsidy.
You can receive a maximum grant of 3 million euros. The regional promotion program is bound at the same time to a favorable starting time of maximally five years. Even part-time founders can apply for support.
With an ERP loan, you further finance a business that has already been launched. Both start-ups and entrepreneurs can apply for the loan. An ERP loan can amount to a maximum of 10 million euros in this case.
The individual loans have a maximum term of 20 years, whereby the first three starting years are repayment-free. In addition to full-time entrepreneurs, the loans are available to part-time entrepreneurs and freelancers.
Start-up capital from external sources
A start-up capital from external sources can also be obtained in several steps. Predominantly exists
- Personal loans for founders and the self-employed
- Business angels
- Contributing and silent partners
- Start-up capital from friends and relatives
- Venture capital and private equity
In crowdfunding, you present your business idea to many investors who support you with any or a fixed amount of money. The financiers must be convinced of your business idea by means of a good business plan.
If you need help with crowdfunding, you can turn to us. We give you tips for raising money and help you with planning, marketing and recruitment.
If the principle of crowdfunding is not for you, you can take out a personal loan at the same time. Various providers in germany as well as on the internet enable you to take out a loan as a self-employed person. The advantage with these loans is the fact that you do not need an elaborate business plan. The loan in this case is granted by private investors.
The business angels can be considered as "corporate angels" or. Mentors are considered. You can ask them for money. Whether they support you is up to them, however.
Business angels can help you raise money. For this you can contact us or directly the business angels network in germany.
The partner in the form of a co-participating or silent partner is a well known financing model. While silent partners only want to invest money and thus receive reports and figures on your activities, participating partners have a say in your business.
Thus, they can influence your business, at the same time give you assistance with problems or concerns. Friends, relatives or other potential interested parties are suitable as partners, for example.
Friends and relatives can generally advance you the necessary startup capital. Lending money from acquaintances and relatives is usually a faster and cheaper way than borrowing from a bank.
However, you should always draw up a contract independently of the amount of money borrowed. At the same time, the contract should specify all important points, such as the term and form of repayment.
Venture capital or. Private equity, on the other hand, describes venture capital from companies or individuals. To draw venture capital, you can turn to specific investors. They receive reports and set a milestone with you.
Becoming self-employed without your own capital – possible with a little effort
If you want to start your own business, but you don't have your own capital, you can implement your plan with some effort. You can get outside capital from
Obtain. However, a good business plan even without a master's degree or other degrees is always necessary for this venture. If you need help with the preparation of a business plan or with the application for outside capital, you can contact us at any time.Com turn.