Business Start Up Funding
Small Business Start Up Money
How Much Will You Need?
Business start up funding. How much small business start up money will you need? What will your business money start
up costs be? Will you have enough cash to see you through the establishment phase of setting up your business? What about cash flow. If not who can you approach for funding? And what can you do to increase your chances of approval?
The amount of business start up funding you need will vary depending on the type of business you plan to set up. If you have staff to pay you will need to look at
the real cost of hiring staff.
It will also depend on your establishment costs and the amount of your own funds that you will be contributing to the business. Read more here to help you
calculate your business start up costs.
You should speak to your accountant before you apply for a loan or seek funds from any outside source. An accountant will help you set up the best business structure for your particular circumstances. The legal structure of your business determines your legal and financial obligations. So this is something that you should sort out early on.
Small Business Start Up Money
Where Can You Get Yours?
If you need to find a source of business start up funding some options are:
- Banks - business or personal loan
- Finance companies
- Solicitors - see below
- Accountants - see below
- Small business grants
- Borrowing from family or friends
- Drawing on your superannuation - if eligible
- Personal savings
- Franchisors - (if buying a franchise)
- Selling some of your assets such as car, boat, caravan, shares etc.
Note:
The above sources of finance are not recommendations. They are provided as a list of possible options. Individual circumstances vary and you should seek professional advice based on your personal situation.
Important!
Before approaching any lender or even choosing on the legal structure for your business you should
prepare a thorough business plan.
Solicitors and Accountants
Your solicitor or accountant may be able to help. He/she could possibly put you in contact with investors who may be interested in backing your idea.
Solicitors and accountants vary in the services that they provide to their clients. If your advisor offers this service they will need you to provide a complete and thorough business plan. They will then assess the viability of your business and make recommendations to you about your funding options.
Remember:
When entering into agreements with any third party make sure that you have a written contract. Any financial arrangements should be documented in a contract. Before you enter into any written contract have the contract checked by your solicitor.
Note!
Monitoring and Tracking Your Income and Expenses
One of the very first things that you should do when establishing your business is to decide on your method of business record keeping and to consider if a
small business accounts package would be of benefit to your business.
Do not underestimate the importance that efficient financial management will have on your business success!
For More On Finances
business record keeping
small business acccounts package
importance of cash flow
where to get money for your start up
more about the gst refund
from Small Business Start Up Funding
to What is a Business Plan
from Small Business Start Up Funding
to How to Start a Business home page
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