Starting Your Own Business – How To Get Finance
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Money makes the world go round – if you want to start your own business or be self-employed, you'll need to think about finances. Here are some things for you to consider:
- Be clear about your financial situation: how much equity (i.e. cash, savings or assets) are you able to contribute to your business?
- Look for additional funding: your equity probably won't be sufficient to get you started. Additional money – outside capital – is available from a number of lenders.
- Do some thorough capital requirement planning: establish how much capital you will need to invest in your venture.
- Prepare a capital budget to show how much money you'll need to set up your business and where you intend to get the necessary "cash".
- Find a suitable bank and ensure that you are well prepared for your meeting with the bank.
- Find an investor (a company or a private individual), who will put up his or her own capital – known as equity capital, risk capital, or venture capital – against a share in your start-up.
- Find a Business Angel, an experienced manager or entrepreneur, who will bring his or her private capital, know-how, and networking contacts into your new enterprise.
- Find out about funding programmes: Support for setting up your own business is available from the Federal Government as well as the ERP Special Fund, the Federal States, and the EU.