How to Find funding for your business creation project
As a general rule, your project requires start-up funds – to buy equipment, rent a business or offices, and pay for the services of third-party service providers… You will also need money to develop your business in the medium term.
Take in account that social medias and video platforms are essential for the growth of business. For example, TikTok has become the best platform to advertise your products online. To have a large audience for popularizing your business, don’t forget to buy followers on TikTok.
What financing should you consider for the creation of your business?
There are many options for financing a business , some of which are more suitable at the time of creation. Here are the main ones:
- Your own funds : invested in share capital or in a partner’s current account, they are the simplest solution for financing the start-up of your business. Provided you have sufficient financial capacity…
- The bank loan : costly and at the discretion of the bank, the loan remains a good way to obtain significant financing.
- Crowdfunding : it not only allows you to raise funds, but also to pitch your project. A good test to gauge future success…
- Business angels, love money and other “silent” investors : certain legal statuses allow you to bring investors into the capital, without losing control of your business. It is up to you to convince them, to determine the conditions of the preferential shares and to properly lock in the statutory clauses.
Are you eligible for financial aid?
Beyond public funding (BPI in particular), consider applying for business creation aid ACRE, ARE, ARCE, etc. You can thereby benefit from your Pôle Emploi rights acquired previously, obtain advantageous loans or even be accompanied by professionals.
Choose the right legal structure to set up your business
At this stage of the creation of your business, you are about to get down to business… and come up against the intricacies of law and taxation. To help you see more clearly, we offer a comparative table of the different legal statuses . In summary :
- either you create a new legal person to limit your financial liability to the amount of your contributions (with a commercial company, mainly the SARL or the SAS );
- or you create a sole proprietorship ( EI or EIRL ) for simplicity.
Don’t forget that if you have decided to join (in step 2!), you are obliged to choose the trading company.
Between the EI, the SAS/SASU or the SARL/EURL, it is mainly your taxation and your social system that change. This will therefore be the time to arbitrate between a tax on the IS or the IR, and between the TNS status or assimilated employee. If you are lost, a legal professional or a chartered accountant can advise you and accompany you in your choice and your steps.
Finally, be careful if you practice a regulated liberal profession. Consult your professional order to check the legal statuses accessible to the liberal professions.