With a project and a team, there is still a lack of an important resource for entrepreneurship, which is money! In the business plan, there is a very important chapter of the financial plan, it involves the capital needs of entrepreneurship. College student entrepreneurs are enthusiastic about starting a business, but the lack of funds has become a major roadblock on the road to entrepreneurship. So how do college students finance and find money?
Financing refers to the enterprise from its own production and operation and capital utilization, through certain channels and ways to raise funds to meet the needs of enterprise development of an economic behavior. Simply put, entrepreneurial financing means raising entrepreneurial capital. Governments at all levels and relevant departments and social institutions have different preferential policies for college students' entrepreneurship, and it is suggested that college students who start their own business in Hangzhou can choose the following financing channels and methods:
One, governmental policy financing
Governmental policy financing is a financing fund established by the government for encouraging entrepreneurship, supporting technological innovation and specialization, and using it for the operation of new enterprises, which is the most important financing method that college students should strive for in order to start a business. It is the financing method that college students should strive for the most. The Circular on the Three-Year Action Plan for College Students' Entrepreneurship in Hangzhou (2017-2019) stipulates that eligible college students will be given more funding to support startups and provide gratuitous funding for projects ranging from 20,000 to 200,000 yuan; and for winning entries in entrepreneurship competitions at all levels that have been landed and transformed in Hangzhou, the support will be up to 1 million yuan.
Two, friends and relatives financing
Friends and relatives financing, that is, raising money from family members or other friends and relatives, is the simplest and most effective way, and is one of the ways of debt financing. Because of family and friendship relationship is relatively strong, each other know each other, it is easier to get each other's trust, to raise funds is relatively simple, but this way of financing can raise funds is more limited, more is a kind of friendship sponsorship.
Three, venture capital
Venture capital refers to all high-risk, high-potential return investment. Entrepreneurs will sell part of their business to venture capitalists, and then obtain funds for business development. However, venture capital is generally more interested in projects that have technological content, strong innovation in business model operation, background and rapid development, so this type of college student entrepreneurial projects can consider venture capital for financing. In addition, college entrepreneurs can also be through the media, entrepreneurship competitions, venture capital firms and other venture capital opportunities, such as the Challenge Cup series of events have been to graduate within five years of the entrepreneurial college students to open the door to participate.
Four, partnership financing
Partnership financing, that is, in accordance with the principle of *** with the investment, *** with the operation, *** bear the risk, *** enjoy the profit, directly absorbing the investment of the individual or the relevant units for a partnership in a financing channel. Many college students will try to start a business in the early stage of entrepreneurship, which can not only effectively raise funds, but also give full play to the cohesion of the team, the effective integration and utilization of various resources to reduce the risk of entrepreneurship. However, the shortcomings of this approach are also very obvious, more partners, more bosses, easily lead to a lack of unity of opinion, or because of the rights and obligations of the unequal, the partners contradict each other and split.
Fifth, financial institutions loans
Governments at all levels will designate the relevant banks to provide small loans to college students' entrepreneurial enterprises, the loan program is simple, and the preferential margin is also larger. Hangzhou has implemented a program of guaranteed loans and "risk pool" funds for university students. Qualified university student entrepreneurial enterprises can apply for entrepreneurial guaranteed loans of up to 300,000 yuan (inclusive) and enjoy the corresponding interest rate subsidy policy. The maximum loan amount can be increased to 500,000 yuan for projects of transformation of scientific and technological achievements, research and development, or cultural creativity. And the government to increase the loan interest subsidy, the college students entrepreneurial projects to implement the full amount of subsidized interest.
Of course, in the actual entrepreneurial process, some college students have also chosen the crowdfunding model, through the Internet way to release the fundraising entrepreneurial projects to raise funds. Compared to traditional financing methods, crowdfunding is more open, and the ability to obtain funding is no longer based on the commercial value of the project as the only criterion. Netizens who like your project will put in the corresponding funds. But in fact, the crowdfunding model is not mature, and its legitimacy is widely questioned. Therefore, as a college entrepreneur, you should try your best to get other financing channels and methods.
After knowing who to ask for money, you also need to know how much money you need for your own business project, otherwise you can't finance it with a big lion's mouth! So how do college students calculate how much money they need for their own business projects?
The total amount of money needed by college students to start a business can be calculated according to the following formula:
Total amount of money needed = liquidity money needed + debt service money needed + investment money needed Investment money needed = fixed investment money needed + capital operating money needed + speculative money needed
The total amount of money needed by college students to start a business can be calculated according to the following formula:
Total amount of money needed = liquidity money needed + debt service money needed + investment money needed
Wherein, liquidity fund demand is mainly measured for maintaining production, expanding scale, increasing the input of working capital, as well as paying for expenses, making up for seasonal differences in income and undertaking new contracts, which require capital advances or increased input.
Debt-servicing fund requirements are mainly measured to maintain creditworthiness, the need to return due bank loans, suppliers and other external borrowings and other funds.
Fixed investment requirements mainly measure the cost of purchasing equipment for production and the construction of its plant and real estate.
Capital operation demand mainly measures the deposit for bank acceptance bills, the cost of purchasing land and applying for land certificates, the funds required to obtain certain qualifications or eligibility, expanding the enterprise's capitalization, and acquiring enterprises.
Speculative capital requirements are mainly measured for speculation on securities and stocks, land and property and non-performing assets.
And the use of entrepreneurial capital is mainly in four directions: technology and product development, production equipment, expanding the market and human resources, and the empirical data of its capital needs at different stages are shown in the following table:
The empirical data of the various types of capital needs of entrepreneurial enterprises at different stages of development
Undergraduates can estimate the amount of capital needed for each stage of their entrepreneurial activities according to the above table. The amount of capital needed for each stage of their business can be estimated according to the above table, so that they can reasonably choose the financing channels and methods to raise capital and lay a solid foundation for the good development of their business.