The meaning and types of start-up funds

The meaning and types of start-up funds are introduced as follows:

Start-up capital refers to the necessary capital investment of entrepreneurs when starting a business, and it is the upfront expenditure of the project. Start-up funds include: store decoration, purchasing equipment, goods funds, etc. Of course, it also includes employment training for entrepreneurs to improve their ability, store leasing, funds needed for store display of goods, and the amount of liquidity varies.

For example, property start-up funds include: funds for all necessary expenses required in the early stage and special maintenance funds for property public facilities.

It consists of two parts: one part is the funds needed for the establishment, establishment and composition of property management enterprises, which are mainly composed of real estate development enterprises, units, organizations and individuals. Mainly used for the registered capital of property management enterprises, the purchase and lease of office buildings, the purchase of office supplies, staff salaries and other related expenses.

The other part is the special maintenance fund for property public facilities. It is mainly used for the accident maintenance and daily maintenance expenses of the property fixed by the property agency. Such as house maintenance, water supply, power supply, gas supply, elevators, fire fighting and other major projects and equipment replacement.

The cost of these projects is generally huge, and the daily fees or other operating income of property management institutions alone are far from enough to meet the demand. Therefore, as long as certain special maintenance funds for property facilities are prepared in advance, the cost of major projects can be solved.

Extended data

1. Sources of start-up funds: First, self-raised funds, including their own savings or loans from relatives and friends. The second is social financing-by providing high-value fixed collateral, lending to financial institutions such as banks, or borrowing from informal financial institutions through acquaintances or networks, the latter has higher interest rates and greater risks than the former.

2. Precautions for the operation of start-up funds: Start-up funds are the most basic funds, and there must be income expectations in the later period, and the capital turnover should be benign. If you start a small business, you should control the cost.