Funding Your Small Business Start Up in Wilmington, NC
When deciding to start a new business, the first question most individuals ask is: How much money do I need? Starting a new company is an intimidating proposition, and for many future business owners their main concern is cost. But by thoroughly planning and managing cash flow, you can successfully start your own business without running out of resources.
You may envision your company being a large-scale operation, but at the very beginning, it’s smart to keep things small. Smaller also means cheaper. The smaller you are the easier it is to save cash. Not everything you purchase is an asset, but some purchases are crucial to growing your business. For example, it costs money to set up a legal corporation, an LLC or a partnership. The money you spend to build your website, the costs building, buying, or renting your office and the salaries you pay employees to help you set up are all expenses that are required to further your business. Other expenses are less crucial and by putting your priorities in order you can easily cut costs by deciding on what you need, not on what you want.
One of the most important pieces of the puzzle is knowing how much cash you’ll need saved up for the early months while your startup is not generating enough sales to cover costs and expenses. Most experts estimate that an entrepreneur will need six months’ worth of savings on-hand at startup. A large part in deciding how much cash you will need for your startup also depends on the kind of business you will be running. Some home businesses such as cleaning or pet sitting will be quite low, meanwhile starting an IT company or medical office will need much more. One of the main reasons most small businesses fail is that they simply run out of cash. By projecting your cash flow you can reduce the risk of going into the negatives early on. Once you’ve determined your costs and cash-flow projections, you’ll need to consider how you will obtain funds. This will impact the future of your business for years to come.
Lastly, think about the resources and assets you are entitled to. Where will the funding come from? A few options include personal savings, investors, bank loans, or peer lending. Regardless of how you plan on raising the funds, keep detailed records of everything.
Don’t let the lack of funds stop your business idea. There are limitless options and resources available to fund your start-up and bring your dream to life. Finalize your business plan, make sure you have a great elevator pitch, and with determination and hard work go out there and get the money your business needs.
HELP WTIH SMALL BUSINESS START UP IN WILMINGTON, NC
BOSS is a growing firm of local business advisors who are committed to providing responsive service, strategic thinking, and competitive pricing to our clients. If you’d like help or to learn more about small business start up in Wilmington, NC give us a call at (910) 338-1198, stop by our new office located at 3901 Oleander Drive, Suite G in Wilmington, or click here to fill out our online contact form. We look forward to hearing from you!