Now that you have a business plan on paper, it’s time to think about how you’ll get the money to invest in your business. There are a variety of options to choose from, but you need to ensure you plan your budget carefully and get expert financial advice to minimize any risks. Financial sources might include equity investors, loans or venture capital schemes/government assistance.
There is no one right or wrong method to obtain finances for your business– it all depends upon the size, scale and nature of your business. You may wish to enlist the help of a professional expert such as an accountant to help you make the right decision.
Remember that anyone who gives you money, be it a bank or an individual lender, will need security to ensure that you are capable of returning the money. Security may be in the form of collateral, equity or various income projection statements. You will need to submit a detailed business plan highlighting the profitability potential. Sometimes investors/banks may wish to check your personal financial statements to help them identify any hidden liability or pending financial commitments before they decide to give you a loan.