Starting a business is difficult in many ways. Every facet of planning can be a bit overwhelming, but the most important question any startup should ask is “how much money is this going to take?”
Securing funding is the biggest component in cultivating a healthy business ready to withstand the rigors of a difficult incubation period. We here at Funding Well Capital have years of experience from every corner of finance, and use that experience to create tailor-made lending opportunities designed to meet each of our client’s needs.
Obviously, there’s no true answer to the question posed above. But it’s important to fully immerse yourself in understanding the costs associated with starting a business.
Financially, you need to know the cost of running your business each day. Prepare your business for a best case scenario, but also understand that initial sales sometimes don’t go to plan. Successful business takes time to mature and faces obstacles along the way. Estimate costs to create plans for good and bad months by identifying how much money you’ll need to spend on employees, supplies, rent, etc.
We’ve provided loans for many startups – especially in the medical and technology industries. We understand a good chunk of what you borrow will be for equipment. New or used, equipment varies in costs and can be a considerable chunk of startup money.
Keep Food on the Table
Just like projecting your business’s finances, you also must outline your own personal budget. A common tip in starting a new business is to save up three months of living expenses. The unpredictability of a new business means you should consider increasing your savings above the suggested amount.
Don’t have an accounting degree? Outsourcing your business’s back office solutions takes the stress out of daily tasks. It’s essential for analyzing data, staying compliant with government regulations, keeping your books tidy, and much more. Incorrect bookkeeping can leave you with a “one step forward, two steps backward” scenario if you have to double-back to fix problems. It’s wise to hire a professional when you need it, but it costs money. On top of that, you’ll need infrastructure in place to set up a sales team or a marketing team if a situation calls for it.
Remember to consider the potential costs when planning, because anything can happen!
A major benefit of borrowing to start a business right now is to take advantage of historically low interest rates. As your number one business financing source, Funding Well Capital offers the lowest rates possible while providing the customer service of a small bank.
Give us a call today!