Notifications
Clear all
Business startup funding is always a worry. Do I have enough money to start? Can I quit my job to concentrate full time? Will I be able to cover my monthly expenses? When the time comes to actually launch your business you must have done your homework regarding your business startup funding needs. You need to be prepared so that if the opportunity to accelerate your launch presents itself, you're ready. Assess Your Personal Finances
Take out your checkbook and credit card statements and review all of your personal expenses. Find all the frills and eliminate them. It's tough to do, but if you're really committed to getting this business of the ground you need to reduce your personal expenses. Taking control of your business startup funding doesn't mean you have to quit enjoying life. You just have to prioritize for now. Skip the night show and catch a matinee instead. If you're going out for dinner, clip a 2 for 1 coupon or go to the early bird. Hold off on that tropical vacation for one year.
Evaluate Your Business Expenses
Another element of business startup funding is your minimum business expenses. Luckily, computer consulting is not a capital intense venture. You will have business expenses to cover though, so you must analyze what those are and figure them into your business startup funding needs.
Do the Math
Total up your personal and business monthly expenses. To launch a successful business you need to have at least six months of cash in the bank OR an alternative source of affordable capital. Many people won't have 6 months cash to cover their business startup funding needs. If this is you, you will need to find, or keep, a job.
Limit the job to 15 - 20 hours per week so you leave enough time to concentrate on building your business. Whether it’s teaching some computer
courses at the college or working at an electronics store, you have to be bringing is some reliable income. This reliable income will give you the cushion you need to spend time building your client base. Securing adequate business startup funding is one of the most challenging aspects of launching a small business. You don't want to minimize its importance though. Inadequate business startup funding is at the root of many business failures. The Bottom Line on Business Startup Funding
Topic starter
Posted : 26/03/2010 5:46 am
Re: Business Startup Funding - Are You Ready?
The Self Financed Business
* Founders keep maximal equity.
* Founders have to invest significant cash (100K+) to hire employees and fund operations.
* Founders keep full control and can run the business however they like.
* If the company becomes profitable, the owners receive the profits directly.
* If the business flounders and fails, the owners lose their investment.
* The founders and management have control over any future deals such as private equity sales or even future VC (venture capital) funding.
The Venture Capital (VC) Round
* There is significant equity dilution (i.e. 50%).
* Company founders can gain several million dollars to keep a 10-20 person company alive for 1-2 years. They give up some control to receive investments.
* The VCs will sit on the board and boss the company around. This actually can require a lot of hand holding and distraction.
Posted : 11/05/2010 6:46 am
Re: Business Startup Funding - Are You Ready?
There's a book I've read called "Bootstrap Business". The writers started a company together with $5,000 to test the principle they were writing about - how to start with little funding. They don't tell you it will be easy, and share business failures, but the company that they started brought in a million dollars revenue within one year. I recommend reading his book to see if it is a route you want to take in starting a business.
Posted : 03/06/2010 7:56 pm
Re: Business Startup Funding - Are You Ready?
Financial insecurity
There can be times of financial uncertainty and this may have a knock-on effect for both you and your family. For example, you may have to forgo holidays. You may have invested personal savings or used your family home as security and in the worst case scenario you risk losing your investment or even your home.
Loss of company perks
Setting up your own business means that you will no longer be able to take advantage of the usual benefits associated with a permanent job. This includes the loss of 'safety net' benefits such as pension rights, sick pay, paid holiday and other company perks.
Pressure on close relationships
You will need the support of your family and friends. They should be aware from the outset of the effect starting up a business will have on your life and it is crucial that they are right behind you. Their emotional backing may also need to be complemented by a practical 'hands on' approach. Discussing these issues before they arise will help.
Posted : 07/06/2010 5:42 am
Re: Business Startup Funding - Are You Ready?
Hello
Nice post. I have got lot of information from this post
Thanks for sharing this nice information
Please keep sahring more and more information
Thanks
Posted : 11/06/2010 8:02 am
Forum Statistics
6
Forums
5,496
Topics
35.8 K
Posts
8
Online
21.9 K
Members
Latest Post: why does salesforce best CRM ? Our newest member: FerifaDew Recent Posts Unread Posts
