Start-up Cash

Thu, 29 May 2008 12:41:04 GMT

Finding start-up cash was a little bit daunting at first. I knew from my business plan how much I'd need for the initial outlay and ongoing running costs.

As I started to register the company, I realised that there were a lot of costs that I had not included in my business plan. Items such as domain registration, web site hosting, email hosting, legal creation of the company, equipment needed for logistics etc.. So many small items popped up that I had not considered. If I was doing a business plan again I would definitely include a larger area for smaller miscellaneous costs.

My husband and I agreed that we would not invest our existing savings into this new business. As tough a choice this is, I'm glad that we came to this decision. This means that this new business venture won't drain our personal finances. I worked additional hours and earned a little more to set aside for this start-up. Surprisingly, it didn't take too long before I had the start-up cash in hand. I also felt a huge sense of achievement by doing this.

In the future I expect that I'll need to consider using Invoice Finance or a Bank Overdraft to fund the growth of the business. For the moment I am happy that I have created enough start-up cash to move forward.

The amount of start up cash required, and the directors/owners personal financial circumstances will often dictate how you finance your business start-up. Often entrepreneurs turn to Business Angels, Venture Capitalists or Loans for starting a business.

Business Angels are always keen to spot and make a good investment. I attended the Business Start-up Show in London where there were lots of Business Angels standing by to invest in new investors and entrepreneurs. Going down this path will inevitably mean giving away some market share in the business. We've all see the Dragons Den experiences of entrepreneurs who are pitching for investment to the Dragons. Many lessons can be learned from these pitches.

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Start-up Cash