We know at SOS Bookkeeping that a great business idea is an excellent starting point for a company. But without funding to provide the necessary capital, your business idea could be dead before it’s even begun.
Think about how much investment you’ll need to get going, the different routes to funding and the best ways to approach investors and lenders. Here are some things to consider from the SOS Bookkeeping team:
Calculate your startup costs
Working out your startup costs gives you an approximate figure for your initial investment in the business. Armed with this figure, you can start looking at how much cash will be needed to kickstart your initial business idea.
Think about costs like; buying computer equipment, office furniture and desks, equipment and tools, vehicles and all the other things needed to become operational.
Estimate your average monthly expenses and revenues
In the most basic terms, your startup’s financial model is a process of money going out on costs (expenditure) and income coming in from sales and other sources (revenue). Estimating your expenditure and revenue will help you understand if the business can actually generate a profit.
Explore different routes to funding
There are plenty of different ways to raise the necessary startup fund. What works best for you and your business will differ depending on your situation, your credit rating and your ability to convince lenders and investors of the viability of your business idea.
Usually speaking, you have the options of:
- Borrowing money from friends and family who believe in your idea
- Borrowing from banks and other lenders who can see the startup’s potential
- Appealing to external investors, such as private investors or venture capitalists
If you would like to discuss your business needs. Call SOS Bookkeeping on 01 849 5131 or email shane@sosbookkeeping.ie For the latest business/practice news, taxation/financial resources and our Newsletter, visit https://sosbookkeeping.ie/