You will need decent capital to start a business in Russia. At the very least, you must have enough to pay for the registration and incorporation of your company. But you may also need money to pay for your business office, marketing expenses, and initial production of goods within Russia.
It would, therefore, be wise for you to have a plan for financing your Russian business.
Here are 3 strategies that you can use to fund your business ventures:
1. Dip Into Your Savings
One way to fund your business idea while in Russia is to dip into your savings.
You should consider dipping into your savings if your Russian business structure is the sole proprietorship kind. But this option is only worth considering if your start-up costs and your business operation costs are quite low.
Otherwise, it’s too risky since you are also liable if your business fails. You will need to dig deeper into your wallet to cover those debts on your own and you may deplete your savings. Without your savings, you will have nothing to fall back on if that happens. So, you need to weigh the risks.
You can also consider using some of your savings if you choose to incorporate a limited liability company. The beauty of using this option when establishing a Russian business is the fact that even if your business fails, you only have limited liability. So, you can keep the rest of your savings. The risk of doing business is lower and manageable.
Dipping into your savings is also worth considering if you have a lot of money available for investment. With a business investment of $100,000, you can get a Russian investment visa.
2. Ask Other Like-Minded Business Partners To Contribute
Another way to raise the capital that you need to start and run your business until it is profitable is to ask like-minded people to join you in forming a business.
This option works well if you have some money but require a lot more than what you have. The size of each person’s contribution will determine the shares they get to hold in the company. And the shares of each person determine the financial risks and rewards they will get if a business fails or generates profits respectively.
In Russia, both the Limited Liability Company and joint-stock company structures allow for this kind of business funding. The former allows for up to 50 members while the latter allows more than that number as shareholders. You and your business partners must sit down to determine which of these will work best for your individual and collective interests.
3. Get a Loan
The other option is for you to get a loan to start your business in Russia. You can opt for either debt financing or equity financing depending on whether you want to keep full control of your company or not.
To find the loans you need, you can start by reaching out to Russian private investors. The National Business Angels Association is a great place to start your search. You should also try to apply for loans from banks in your business locale.
The odds of you getting a loan to fund your business will be higher if you have a residence permit. And be sure to create an excellent business plan. You may be required to present it to either the bank or the private investor that you want financing from.
Don’t let the lack of money stop you from establishing and running a successful business in Russia. Funding can be obtained from different sources. In the meantime, start your visa application process. And if you need a Russian invitation letter for your business, check us out at https://visaexpress.com/russian-invitation-letter/.
photo credits to: https://www.exportiamo.it/