Newspaper article The Journal (Newcastle, England)

FINANCING YOUR NEW BUSINESS; WHEN Starting Up It Is Vital to Take Time to Consider the Finances Needed to Get Your Business off the Ground, How You Will Raise These Funds and How You Will Manage Your Finances as Your New Venture Grows. Here Business Link''s MARK DAVID Provides Some Practical Advice on All Aspects of Financing a New Business, to Help Ensure It Has Firm Foundations for Long-Term Success

Newspaper article The Journal (Newcastle, England)

FINANCING YOUR NEW BUSINESS; WHEN Starting Up It Is Vital to Take Time to Consider the Finances Needed to Get Your Business off the Ground, How You Will Raise These Funds and How You Will Manage Your Finances as Your New Venture Grows. Here Business Link''s MARK DAVID Provides Some Practical Advice on All Aspects of Financing a New Business, to Help Ensure It Has Firm Foundations for Long-Term Success

Article excerpt

Byline: MARK DAVID

QI''ve got a strong business idea, however how do I determine how much money I will need to get my new enterprise off the ground? AEvery new business needs money when starting up to purchase equipment, establish the workplace and meet marketing costs - all before the first sale is made. Then once you''re established, you''ll need cash to pay the bills and keep the business going.

Your business plan and financial forecasts will be key to determining how much funding your business is likely to require, what it is needed for and when you will need the money. A strong business plan will not only help you to lay out what financial resources are required, but will actually help you to raise the money you need by convincing banks, lenders and other investors that it is worth them taking the risk to back your business.

You will also need to factor in your running expenses, as well as bearing in mind that customers may not pay you immediately, but you will still need to settle all your bills to keep trading.

QI know what my start up costs will be, but what finance options are available to help get up and running? AThere is a range of financing options when starting a new business and choosing the right one, or a combination of options, is essential. Many people use their own savings or personal borrowings to fund the business. However, if you have a strong network of family or friends, they may well back you -but, you should carefully consider the risk that they could lose their money if your business is not as successful as anticipated. If you have a solid business plan, you may be able to borrow from a bank. Many businesses use overdrafts for day-to-day borrowing and loans to finance large purchases such as equipment.

A larger business with good prospects might attract outside investors. For example, ''business angels'' typically invest pounds 10,000 or more in exchange for a share in the business.

QWill I be able to access funding or grant support to help get my business off the ground? …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.