We have been able over our years of experience in the accounting and finance environment, to assist many individuals and businesses to secure millions of dollars for start-ups and existing businesses through debt and equity funding. The need for funding would be even more critical at this time for start-ups due to loss of jobs and businesses experiencing reduced income and therefore need remodelling.
The following are some of the main sources for funding:
Government Grants – given mainly to certain project types, industry types and groups such as youths based on government policies. Must have a business plan with projections and show social / community benefits.
Bank, Small Business Loans and Credit Cards – requiring a percentage collateral/equity injection, proof of performance that can sustain the monthly instalments (instalments not exceeding 40% to 45% net profit), must have a good business plan with projections and must have a good credit rating.
Borrow from family and friends – depends on trust and promise to repay.
Angel investors and venture capital funding – requires a good business plan with projections. Investors with extra funds can purchase equity or shares or through joint ventures.
These are some requirements needed to obtain funding and hints to better your chances:
FUNDING FOR sTART-UPS
Funding for Startup
A sound business plan including 5 to 10 years of projections using practical and feasible assumptions. Risks must be considered and methods of mitigating them stated.
References from at least 3 to 4 reputable persons.
Quotations of equipment and estimates of capital expenditure to procure and undertake.
FUNDING FOR EXISTING BUSINESSES
At least 2 to 3 years of financial statements.
A sound business plan including 5 to 10 years of projections using practical and feasible assumptions. Risks must be considered and methods of mitigating them stated.
Quotations of equipment and estimates of capital expenditure to procure and undertake.
HINTS TO STRENGTHEN YOUR CASE
Think big. Show the big plan for continued growth and development based on a sound underlying philosophy. For example the building of assets to create continuous wealth.
Identify a strong legal and management structure; through registration, a varying skilled and knowledgeable board of directors, associations and an effective organizational chart.
Dissect your business into management, operations, sales and marketing and support teams.
Ensure your taxes and other statutory obligations are paid up or at least they are managed well.
It is important you get the assistance of a professional firm with the experience and certification to first evaluate your position, strengthen your application for funding and better your chance for success from the start and going forward.
Contact us for a free consultation to ensure your planning and approach sets you on a sure course for success.
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Hi Carla. We appreciate your interest in our post. We can schedule a free consultation, to guide you through your funding needs.