Do you face the dilemma, whether to lend money to start a business faster, ask the state for a business grant, or start more slowly? Don’t worry, you are not alone.
As a first step, make a list of all the investments that are necessary to be able to start your business, as well as to ensure the development during the first three months. Remember to add smaller items to the list, as smaller things make up more.
The list of business investment expenses may include:
- Start-up expenses establishment of a business
- Permissions documents
- Deposit for rent or rent
- Office supplies
- Licenses, copyrights
- E-shop or website
- Reserve for your private expenses for the first three months
- Legal advice, etc.
Plan (at least) twice, pay once
Before you pay for any item, first consider whether you really need it and whether you can turn the money invested in the business into a value. Because business should be all about creating value that you can turn into profit. Can you create something (new) that other people want and are willing to pay you for it?
Once you’ve decided that you need the item, consider renting instead of buying it. Today, you can rent basic business equipment, such as a mobile phone or computer. If you are in doubt about whether to finance the acquisition of the necessary equipment through a lease or a loan, compare and check small business loans reviews. Choose a more advantageous option.
Last but not least, consider whether you can afford to rent or buy things according to your cash flow. Will you generate enough income each month to be left with a principal, interest, fees or rental fee after paying your business expenses?
If you want to grow faster
One of the areas where you can’t go without a loan is the growth of your business. If your business plan and market research show that three company locations will earn you more than one, you need to grow fast. Especially in today’s world, when information flows in real-time and you never know when and where your competition will grow.
When you ask successful entrepreneurs how they financed their growth, you often come across the answer that it will not work without a loan.
However, if you are starting a business, first test your clientele’s response to your small business on us-reviews.com. Only when one section starts to succeed, continue to grow.
Another way to grow early in the business and take advantage of the cheap loan, is through inventory.
As an example, you roast coffee and buy beans abroad. However, three months will pass before the coffee is actually sold. If you buy the material in larger amounts, you get better prices. In this case, you will not move without loans. You need to refinance three months of business before the initial investment starts to pay off. But that’s not all.
You also need to think about the next months – so you need to buy the raw material for the next month, which will be back in three months.
From a business point of view, it is cheaper to repay a business loan in small monthly amounts, which your cash flow will not feel, but your sales will grow.
Prepare well before you start a business. The enthusiasm for growth should never exceed rational thinking about the possibilities of the company.