The way you calculate the company’s capital requirement is:
The figure you end up with will have to be financed one way or the other. The financing can come from:
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?
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 truck 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 food truck.
And you might have learned to manage a proper mobile kitchen?
(This idea is not approved by the health authorities)
Expert entrepreneurs believe that the future is shaped by people. They believe that if they can make the future happen.
- Saras D. Saravethy, professor in entrepreneurship