THOUGHT OF THE WEEK
TIPS FOR BUSINESS FINANCING (PART 1)
1. BEFORE SEEKING FINANCING
There is the need for careful planning before considering business financing. The business owner will need to make the following
i. How much financing do you require?
ii. When and how long is the financing required?
iii. Is there any form of security that can be provided?
iv. Are you ready and prepared to give up some control (ownership)
of the business in return for the finance?
2. THINGS TO CONSIDER
The finance needs of a business should consider the following i. Cost of setup (start-ups) - this is the cost incurred before the business starts.
ii. Starting investment in capacity (the fixed assets that the business needs before it can begin to trade).
iii. Working capital (e.g. Raw materials, staff cost etc.). iv. Growth and development of the business ( extra investment in capacity)……(To be continued)