Are You Really Ready to Quit Your Day Job
Business startup funding is an absolutely critical element in launching a successful business. If you assess your personal and business expenses, eliminate the extras where possible, and asequately plan for sources of alternate capital then you should be able to secure adequate business startup funding.
Business startup funding is always a huge 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. The truth is 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. Total up your personal expenses. Have you ever heard the saying, “how we do one thing, is how we do everything”? If your personal check book is out of whack, chances are your business check book will look the same. If managing finances is not a strong suite, then you may want to outsource that part of your business. That will be an additional expense you will need to account for.
Take Inventory of your personal credit. If all three credit scores are not above 720 or you have high balances on your credit cards, you have work to do. Develop a plan to pay your balances down and begin taking steps towards improving your credit. Get educated and learn as much as possible about how these areas affect your ability to get funding.
Evaluate Your Business Expenses
Another element of business startup funding is your minimum business expenses. Luckily, coaching, consulting, and service based businesses are not a capital intense ventures. 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.
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
Having enough business startup funding means being prepared and applying to all the funding you need early. You have to know where your money will be going and have enough to cover 6 months of expenses. Be really clear on this. There are plenty of practical ways and opportunities of securing the funding you need. There is money available you just need to learn how to get it.
Posted on July 2, 2011, in Business Credit, Business Finance, money and tagged business financing, Business Startup Funding, credit savvy CEO, shameca tankerson, small business loans, women owned loans. Bookmark the permalink. 2 Comments.