If you’re thinking about starting up a new business, this is a good article for you to read. The reason why is because close to half of all new ventures close their doors within just five years of opening, so it’s important that you have as much information as possible when it comes to acquiring working capital.
If you’re interested in knowing some of the steps that you should take in order to know how much money you’ll actually need to run your company on a day-to-day basis, please keep reading:
Decide if it’s best to be virtual (only). One of the best ways to determine how much working capital your company will need is by first deciding if you want to create a physical working space or if you would prefer to be a virtual company. Thanks to the internet, apps, and platforms like Skype and WebEx, it’s relatively easy to run a business from the convenience of your laptop and/or smartphone. By being clear on whether you want a virtual company or not, you can move on to the next several steps.
Research your industry. Something else that you need to spend a significant amount of time doing is thoroughly researching the industry that you plan on becoming a part of. More specifically, you should obtain information on how much it will cost to get your company going the first year and also how much you’ll need in order to be a profitable business. One organization that may be able to assist you with this is your local Small Business Administration office. You can also get additional information by going to All Business and putting “determine cost of startup” in the search field.
Get a mentor. By far, one of the most essential things that any new business owner needs is a mentor. It should be someone who currently works or used to work in a similar field. It also needs to be someone who has done pretty well for themselves, business-wise. By acquiring a mentor, you can learn about their personal experiences. They can also offer you some tips on how to find financing, tips that you might not hear about anywhere else.
Do some networking. Another thing that can help you to determine the amount of working capital that you will need is talking to other business owners in your area. Although you can try and make a connection by creating an account on social networks like LinkedIn, something else that you should do is join local industry associations as well. Many of them have seminars and other functions where you can connect with fellow business owners directly.
Be creative with how you finance. Finally, when it comes to finding working capital options, be open to the many ways that you can finance your company. You might want to use some equity funds. You might want to get some investors. Another option is to go through a lending institution like National Funding Small Business Loans to see if you would be able to qualify for one of their small business loans. Finding working capital requires an investment of time and effort on your part; however, by following these suggestions, it can be easier to get than you might have initially thought. For more information on how to successfully start a small business, visit SBA.gov.