One of the most critical aspects that most entrepreneurs find while starting a business is to raise startup capital. Gone are the days when investors pitch in money just by hearing a new technology idea. Today, entrepreneurs are more like a one-man army striving to win a battle and stay alive. But, what if you don’t have the cash to start up your own business? Luckily, there are still available options for funding new companies out there, but finding this funding and securing the cash can take a good amount of negotiating skills, careful research and above all extensive commitment into launching a new business.
Finances play a very important part in the growth of your company at various stages. Here are some places where your startup capital will go:
- Payroll for you and your employees
- Utilities (such as internet/ phone/ electricity etc.)
- Sales and marketing expenses
Making sure that you have enough money to meet all your expenses and have some extra to carry on your business in the first year of operation is the core deal here. To help you calculate your startup capital we have a tool here which will take just a few minutes of your time and will easily help you evaluate and estimate the initial funds you need for starting up a new business venture. This tool will help you calculate your finance in time period of 10 years ahead.
Forecasting Your Cash Flow:
One of the most important reasons why the majority of new businesses fail is because they do not have enough cash flow to sustain their company. Realistically speaking, it takes a while for a new business to get clients and start making profit after the initiation. Having sufficient funds to fund the company as well as its employees, till this point, is the most important part of keeping the company alive.
Don’t gamble with your business. Try to have a simple and realistic financial plan.