Assuming you have already have had business advice on your business idea and undertaken at least preliminary assessment of the nature of your trading profile and possible future trajectory of sales over the first few months, you will need to think carefully about money. All new businesses need money to start up operations. Most businesses will need to buy at least some equipment, find office space or industrial unit, and pay for initial marketing. Don’t forget that you will need to furnish your office or unit and provide basic office supplies. Some companies will also need an assessment of costs of accounting services, payroll services, legal set up advice, and costs for shipping suppliers. It is worth shopping around at this stage to look at the range of costs for different supplies and different levels of service. Keep a note of all the information. As well as this all businesses need to factor in the money to cover your own needs until the business starts to receive income. It is also better to assume that some customers at least may well not pay on time and may cause cash flow problems unless the business has sufficient starting capital. When the money assessment has been made it will be possible to prepare a reasonable financial forecast for the business plan which can then be used to assess the business needs and help focus on a funding source whether this will be you own money, borrowings from family or friends, or will be requested from a bank or business investor.
October 16, 2011 By