It’s my assumption that your primary purpose in business is to get your operations off the ground, be your own boss and make a profit. Your entire business process is a system of checks and balances. You should know what money are coming in, what’s going out and the difference between these two, which should yield a net profit.
When you are ready to launch your business, the first thing to remember is to establish your financial record keeping system for your business operations. If you don’t have the skills to create your financial system, then find someone who can. You have to know where you stand financially at all times through prompt record keeping and analysis of key data.
Keeping business records are important for two reasons:
- It’s required by Law and
- These are useful documentation to you as the owner
Your financial books must be set up so that your personal money and that of your business are completely separated. I highly recommend that you hire a book keeping firm that will use their experience, knowledge of the current rules and regulations and their expertise to set up your books.
Your financing strategies should be driven by your business goals and objectives that are outlined in your Business Plan and ultimately by the available financial alternatives to keep your business operating. In the final analysis, these alternatives are governed by your “money-raising” power and skills that will lead to successfully launching and funding your business. Currently, there are more alternatives for financing a business than ever before. Many economists estimate that loans remain abundant today for well-structured start-up companies. However, I believe that this remains to be seen in today’s troubled financial world.
One of the questions to ask yourself is how much money do I need to get my business started? If there is one single piece of advice I could give you in raising money, is that you determine how much capital you really need, what will you do with every dollar, how long will you need this money for and how do you propose to pay it back. No matter what approach you use to securing financing, you’re going to need a full Business Plan to take to the loan officer. If you have a business selling something that your customers can’t live without, then funding can usually be found.