As the founder of a business, you must ensure that you have sufficient funding for the establishment and start-up phases. You can either use your own capital or obtain external financing. This requires financial calculations regarding the necessary investments and other costs. The pricing model with which the expenses can be covered must also be considered.
In the early stages of your business operations, you can apply for a start-up grant to secure your income. Bear in mind that you must apply for the grant before beginning operations! Farmers under 40 years of age can receive start-up support for young farmers to set up agricultural operations.
By joining an unemployment fund, you will secure your income even in the event that you end your business operations or sell your share in the company, for example. The Social Insurance Institution of Finland (KELA) can also provide entrepreneurs with certain allowances.
When you set up a business, you must ensure its financing over the establishment and launch stage, either through owner’s equity or external financing. Many types of support forms are available for financing at the set-up stage, alongside public services for finding out about, and applying for, financing.
At the set-up stage of a business, use of the owner’s equity, current liabilities and potential subsidies is typical in order to collect capital financing. When loan-based financing is used for setting up a business, the loan and interest must be taken into account as part of the company’s expenses.
To meet the start-up company’s need for initial capital, to make the required acquisitions and to cover costs, SMEs can receive financial assistance, inexpensive loans or a guarantee for a bank loan from public bodies.
Business advisors of public advisory organisations will assist with financial issues related to a start-up company. For instance, the state-owned Finnvera Plc is a financial institution that promotes business activity and regional development. It improves the financing possibilities of enterprises through various loans and guarantees.
Financing and profitability calculations