oday’s blog focuses on funding a start-up business venture. You may have sufficient capital to kick off a new business, but not always the case. Many small start-up enterprises rely on finding suitable capital venture investors.

Unfortunately, the reality is unless you have a truly brilliant idea, something unique and patented, then the probability is there are a couple of options open to consider if one cannot be found. One is to find a partner, or develop a joint venture with other like minded individuals who are prepared to invest, or borrow start-up capital from a bank or loan shark. I would certainly never recommend the latter option due to higher than average interest rates, and additional risk such as potential asset loses if repayment cannot be met.

My own background has taught me that wherever possible start up on a budget, stick to it, and create enough momentum to fund it from proceeds taken from sales revenue. This depends on the kind of business you are running, as many take time to develop, and ultimately sufficient reserves for overheads need to be met. Cash flow is critical in early stage development, so apart from project plans a concise business plan needs to be designed to meet deadlines. While a business plan prepares for future outcome it also enhances the project and can be used to stimulate investment capital.

Take a bank for example. Arrange an appointment to go and speak with the bank manager. How could he/she possibly think about supporting a new business venture if there is nothing to back it all up – that is why a concise business plan needs to be put together. It might take some time to produce, but it will take longer to get a loan if not done. That may seem obvious, but you would be amazed at how many small business start-ups fail due to not making one.