Business finance for beginners
There are many ways of financing your new business. Get this aspect of your business right, and you can begin reaping profits from the early stages of trading.
Here are some of the best options for funding your start up:
Selecting business partners, stakeholders or shareholders is never easy. If you are lucky enough to work in a popular industry where people want to see businesses like yours succeed, angel equity could be for you. Finding an industry executive who understands the problems you are facing will allow you to capitalise on their experience as well as on their financial input. As the old saying goes, it’s not always what you know, but whom you know!
Choosing the right leases
Depending on the industry that your business is launched into, there are smart choices you can make when it comes to funding some of your more expensive acquisitions. Leasing assets rather than buying them outright can free up some much-needed cash to spend on other essential capital items.
Banks are one of the most popular places that new businesses turn to when they are in need of financial aid. Competitive bank loans with the right conditions are a simple way of obtaining capital whilst having the flexibility of paying them off over a long period of time.
Advance payments from customers
Cash flow can be extremely tight, especially during the first few months of trading. You may wish to consider credit-checking customers by only dispatching goods on receipt of payment.