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The article is subjective (personal experience and knowledge) and expresses the personal opinion of the author.
Identify the amount of money that requires the entrepreneur to assemble and start up a business is of great importance; one can say that this is the point that most anxiously wants to elucidate the entrepreneur.
There are two elements that we must analyze; the first relates to the initial investment, i.e., that which correspond to machines, equipment, licensing, Constitution, licenses, mounts and others to begin activities (development of home); the second element is related to the basic working capital or operating expenses until the company is able to generate its own resources.
With respect to the actual investment value is obtained from already worked budgets; however you want to make some recommendations that may be useful, these are:
Save money renting equipment, lease allows you to free up resources that can be devoted to other needs; buy equipment used to private individuals (see Classifieds). With respect to furniture search companies that sell used items. If the decision is to buy new take time to make contacts with suppliers and obtain proposals and compare guarantees and facilities of spare parts and technical support.
The working capital
In terms of the money needed for working capital, recommended.
First to develop a planned sales revenue flow, taking into account sales and the forms of them, if you can do analysis for cycles or production batches, is best; Please note that money entries depend on the way how it is marketed and the payment terms which are intended to grant. Remember that the business cycle rarely coincides with the period that you defined for the flow of funds.
Then develop the flow of expenditures, for periods equal to the referenced in the previous section, please note in that time should be made payments and not the moment in which a purchase is made or acquired a commitment; remember the credits for purchase of direct materials, pay salaries, rent, services, buy indirect materials, toiletries and other payments that need to be doing in the short (very short term). Draw up a table with a structure similar to the revenue stream.
Once revenues and expenditures have been identified, perform comparative analysis between them for each period, focus on identifying the excesses of expenses with respect to income, assume that the necessary expenses for the first period is essential and this go by adding the deficits that arise in each period.
How to get money for the business?
If you have the money needed to carry out the project, it is not necessary to stop to analyze what here is recorded, simply start to materialize your company. But if you don’t have the money or has insufficient resources continue with optimism and good cheer.
The main obstacle that arises to start a business is the search for the necessary money, it can be said that obtaining sufficient resources is the most complex point in the implementation of a business. However, please note that this is the problem that only people with push and motivated can save, this is the main test that must pass to qualify for the title of entrepreneur you granted your company, if you manage to make it successful.
For a true entrepreneur, there are several ways to provide us the money and we have to look at them carefully.
The plan of business quality and rigor to raise it and the financial study are key keys to open or close the possibilities for funding of a project.
Prior to attending the credit draft an analysis of the personal availability; Note that properties has: a lot, a car, a House, an apartment; are these creating you an income or an expense?. Does he have unused other assets. It analyzes how much you can get from them. It is worthwhile or not, sacrificing certain comforts temporarily? How much have you saved? Or how much you can save in the short run?
It is possible and desirable to find a partner? In this case you must be very sincere and honest and demand the same from potential partners. A partnership is created to unite efforts and achieve success together. Arises from the first moment the conditions and commitments of each rights; draw up a document of creation of the company and register it as the rules sorted it.
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