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In short, financing is the answer to the question of “Where do I find the
money I need to make my business operational?” The way you calculate the
company’s capital requirement is:
- Take the total from the Establishing budget
- Add the biggest cash deficit from the cash flow budget
- Together, the two show the company’s capital requirement
Sources of capital
The figure you end up with will have to be financed
one way or the other. The financing can come from:
- Personal resources
- Families and friends
- Banks
- Public funding schemes
- Suppliers giving credits
- Investors
- Business Angles
- Venture Capitalists (VCs)
- Other
If you don’t find any sources of capital you have to re-think the whole
business idea. Can you organize differently so you don’t need so much capital?
Start with what you have
Instead of going for the end result of your business idea at once, you could take small steps. Say you want to buy a great mobile food van selling five types of burgers, dessert and soft drinks. It is an expensive venture to start and you cannot get the financing.
You could instead make yourself a food trolley, make superb sandwich in your home kitchen and sell the sandwich on street corners and on the beach.
Get a bank account, put your profit from sales in the account and show the bank manager you are a persistent business man. In a years’ time he might be more willing to borrow you the money to the van.
And you might have learned to manage a proper mobile kitchen?
(This idea is not approved by the health authorities)
- Go to Personal Source of Financing
- Calculate
your needed turnover and sales - easy online tool
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| SILVIA, VIETNAM |
19-03-2013 |
6 years in sales and marketing
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