In short, financing is the answer to the question “where do I find the money I need to make my business operational?”
The way you calculate the company’s capital requirement is:
Together, the two show the company’s capital requirements. It’s that easy!
In the business plan template you must relate to the following issues:
financing you should go to is yourself. Do you have money in the bank, assets
placed in buildings or diamonds?
If you believe in your venture, you should use your own funds first. If you don´t, it will be difficult to borrow money elsewhere.
How much money do you have yourself?
Family and friends can be a good source of financing, especially in the early
stage of your business when relatively small amounts of money are involved.
Consider borrowing from several people rather than trying to get it all from one person.
Can family lend you money?
banks require to lend you money to help finance your business start-up?
The best tool to obtain the necessary financing is a detailed business plan.
Based on your personal, establishing, and operating budgets, you can make a cash flow budget or hire an accountant to work it out for you. A cash flow budget shows your expected borrowing requirement in exact figures.
Do you expect to borrow money from the bank?
If you believe that
your business constitutes an attractive investment for
investors and others with
money, you should definitely try to approach them – with your well-made business
Which kind of investors would be appropriate for you?
All over the world, different governments like to support
entrepreneurs one way or another. They can, in their effort to promote
entrepreneurship, set up financing schemes.
The schemes can promote rural development, high tech industry, biotech, the service sector or something different.
Contact your national, provincial or local government. They should know if there are any public funding schemes in your area.
Are there any appropriate funding schemes in your area?
Maybe you are in a position where you can press your suppliers to give you three to five months on credit? If you are, then they could help you finance your when you start.
Go to Download Center and find the template in which you can write your own business plan.
Success usually comes to those who are too busy to be looking for it.
- Henry David Thoreau, American author and philosopher