How To Start Your Own Business: Part 6 - The Scary Stuff Cont.: Loans, Grants, and Funding
How To Secure The Proper Financing For Designing And Developing Your Brand
Hopefully after my previous post on how to start your own business, the scary stuff regarding loans, grants and funding won't seem so scary after all.
Financial considerations are paramount. A business should not begin to trade until it has sufficient short-term finance in place. This section guides you through cash flow, profit forecast and how to source and secure initial finance.
In the fashion business, cash flow problems are often cited as the main reason for the business to fail. It is vital to fully understand a ‘cash flow’ and continually update your forecast (monthly). Failure to understand how your cash flow works can result in disaster for your business.
At the outset, it is important to understand the difference between cash flow and profit forecast:
Cash Flow is a simple way of recording any money that comes in and goes out of the business, the closing balance being whether your bank account is in credit or overdrawn.
Profit Forecast is usually prepared on an invoice basis and shows your expected sales and purchases, irrespective of when money is paid or received. It accounts for items such as computer equipment, sewing machines etc, over a different period to when the payments are made.
Improve your odds of business success by understanding your financing needs as well as the options that are available to help you start, manage and grow your business.
SInce this section contains a lot of info, I've included links to sites that will go into additional detail on each subject at hand.
Estimating Startup Costs - Assess the costs associated with starting, managing and growing your business.
Using Personal Finances - Learn how your personal finances can affect your business finances.
Preparing Financial Statements - Learn about the importance of understanding financial statements for your small business.
Developing a Cash Flow Analaysis - Learn how to determine the amount of cash you need to start, operate and expand your business.
Breakeven Analysis - Learn how to determine when your business will break even and begin to make a profit.
Borrowing Money for Your Business - Learn what you will need before seeking out financial assistance for your business.
SBA Financial Assistance Eligibility - Learn what the requirements are for businesses seeking SBA financial assistance.
Is Your Business Fiscally Fit? - Learn how to better manage your business money with Money Smart, an instructor-led business training curriculum.
Explore Loans, Grants, And Funding
You have a variety of options when it comes to financing your small business. Explore your opportunities that range from traditional loans to grants and bonds by clicking the links below.
Loans - You're going to pay for this great idea of yours. These topics will provide you with everything you'll need to know about funding.
Grants - Learn what grants are available to your small business.
Venture Capital - Learn about this financing option available to startups and high-growth technology companies.
Loans and Grants Search Tool - Use SBA's search tool to help you identify what government financing programs may be available to help start or expand your business.
This is the sixth in a series of articles on How To Start Your Own Business.