“When I grow up I want to be a successful business!” How many times have we heard that from young children? Believe it or not, this dream still eludes many adults today. So what could be the cause of this unfulfilled dream? Financing, if you are planning a meeting $ 50 startup or expansion of $ 1 million to implement activities to finance this vision a reality.
So who can get financing for your business? Anyone … provided you know where to look. You see, successful companies get great benefits, so many people, not just the owner. It is for this reason that business proposals are feasible research closely with the interests of many potential investors. They know that if the operation is successful, since investors will receive the benefits. In macro-perspective, adding a new product or service, as well as work in the community are important advantages.
The first step in the search for corporate finance, first determine the amount you need. The cash requirements consist primarily of leasing office space, office equipment, office supplies, insurance, maintenance, maintenance, advertising, employment, business licenses, products, etc.
After all these projected figures gathered, it is suggested that you contact your tax advisor or financial institution that works to prepare a forecast of real earnings for its first year of operation. This will determine your cash flow on a monthly basis. The key word is realistic. There is no meaning to fool their investors and even themselves, in the long term. Be honest and do not use the legal amount for funding.
The next step is to decide what type of financing is preferred – debt or equity financing?
Debt financing might seem the best option. The reason is that the lender does not affect the operation or profits of the company. His interest is limited to the payment time and again in a given period. The disadvantage, except that it is difficult to find is that you may receive periodic accounting to a specific amount, and whatever your cash flow is implemented.
On the other hand, require capital funding is not a strict accounting of rights. The investor has more interest and give more freedom for business growth. Not only that, to enable investors to more capital, it also offers advice and business contacts to ensure the success of the company. Unfortunately, in the financing of shares, the investor is also an active player in the business world, it considers the amount of any important decision. This requires regular consultations with partners and need advice of accountants and lawyers with a lot of paperwork.
While many companies start with the debt financing, especially for small businesses, a combination of debt and equity financing is determined, as the company pushes to consider.
Whatever the type of financing you choose, remember that there are many sources of financing – from private sources (such as banks, friends, family) and public sources (eg federal government). So, good luck and realize their business dreams into reality!
