Ways to Fund a Business Startup Plan

A unique business idea does not come around all that often. When you have an idea for a business that you are positive will succeed, you want to test your wings and see what you are made of. The problem with many would-be business owners is having the capital to actually put the plan into motion. This may seem like an insurmountable stumbling block, but before you give up, there are a few options you have when you have nowhere else to turn.

1. Save: As tedious and time-consuming as it sounds, if you are serious about your business, you may be able to save the money. If your current occupation does not pay anything besides your monthly bills, you might decide to get a second or third job. Delivering pizzas for a local joint at night or distributing newspapers on the side is a great way to build up funds. You can also try to reduce your living expenses to speed up the process of saving.

A disadvantage to this idea is that this can take a lot longer than some of your other options. So if the idea is dependent on time, it may not be something you can do. However, an advantage to this way is that you can start your business with little or no debt. That means the first penny you are able to make above your expenses is yours!

2. Business Loan: If you have not saved the money or you feel like your idea just cannot wait, you can always try for a business loan. You will need to draw up a very detailed business plan for the bank to see and a very precise estimate of how quickly you can repay the money.

The disadvantage to this is that you may not get approved, but if you do, you are in a large amount of debt. The advantage to this is that you have your startup capital and you can begin your business.

3. Investors/Partners: One final way you can come up with the funds to start your business is by approaching investors or a possible partner with your idea. You may be able to find someone who is willing to fund you and let you do the work. Or you might be able to find someone who will split things with you fifty-fifty, both work and profit.

A disadvantage of this is that you have to split your earnings. However, the advantage is you get your business funding and can get started.

Just because you do not have the funds to start a business sitting in the bank does not mean you are out of luck. Above are just a few of the alternate avenues that you can take to reach your goal.

6 Simple Business Ideas That You Can Start Easily

Putting up a business is one option in making money that many people are also exploring nowadays. With the aid of the internet and many other technologies today, finding simple business ideas can be not that difficult.

However, it is important to take note that if one business idea works with others, it does not however give you the assurance that it can work for you. Like applying for a job, there should be that right fit if you want to go into business as well.

Among the important factors that you have to take into consideration when deciding on simple business ideas you can start with are your skills and knowledge on the business and the industry that you are about to be involved in and the location of your business. It is also equally important to check out if there is a demand of your product or service in the particular area where you want to put up your business. Of course, there are a lot more considerations.

But of course, you can always have training as well as assistance on the business that you want to venture into if you think you still lack the technical know-how.

If you are in the stage of pondering what simple business ideas are good for you these days, here are a few that you might like venturing into with less money capital required.

1. Wedding planning. If you love organizing and you love weddings, you can be a wedding planner easy and make money out of it. Most couples love to hand over the stress of planning their wedding to someone else, and you can be that someone. Keep in mind however that like many service-oriented businesses, you have to make sure your clients are satisfied with the quality of your work.

2. Catering services. If have the passion for cooking, you may also want to get into the food industry and put up your catering business. Of course, wherever you are, people would mostly opt for a hassle-free birthday celebration or weddings, or any gatherings and that means they can call you for their food and party needs.

3. Home renovation business. This is also one of the simple business ideas that you can start with less capital required. Although you may need to have equipment, you will be able to use them throughout your business’ lifetime. Skills are important in this type of small business.

4. Cleaning services. Anybody knows how to clean for sure but there are just other people who are too busy to do the task, so get off your feet and start putting up your home cleaning services.

5. Pet and animal care business. Usually this starts as a hobby and if you have passion for animals and pets, you can also put up a small business for them – a pet grooming service or a pet accessories store can be a fun and easy business to put up.

6. Organic food business. As many people are becoming health conscious these days, organic foods are also becoming a popular trend. If you have access to good organic farms in your location or suppliers of organic products, then you can venture into this hot business idea that still grow in the near future.

These are a just a few of the many small business ideas that you can find everywhere. Of course, there are considerations and that you have to keep in mind and make sure to start your business right by planning it carefully as well.

Business Opportunities – Which Business Idea Is Right For You?

Many entrepreneurs decide to go into business and then cast about for the ideal business concept. There is nothing wrong in this approach, but it does beg the question as to how you determine which business opportunity is right for you and whether the business idea is worth pursuing. The formal business planning process provides for this type of analysis. It is a process that helps the small business owner remove their ‘rose coloured glasses’ and to investigate the business idea based on hard facts and realistic analysis. The planning tool used to determine the viability of a business opportunity is called a feasibility study.

The goal of the feasibility study is to minimise the degree of risk that a business owner is about to undertake. At the completion of a feasibility study you should be able to conclude if the opportunity has potential for profit and is therefore worth the investment of your time, effort and finance. If the study proves that the business idea is financially viable, much of the information collated can be used in the formal business planning documents.

A word of warning, curb your enthusiasm for a business idea until after the feasibility study has been concluded. Don’t spend a cent, don’t sign anything, don’t get anything underway. Heeding this single warning could save you much money, time and grief.

A detailed feasibility study should include:

The Business Opportunity

Start with a description of the business opportunity in as much detail as possible.

Legal Constraints

You need to investigate whether there are any legal constraints to conducting this type of business. This could include regulatory requirements for specific qualifications or licenses. Home based businesses usually require permission from the local council to operate from the home. There is no point launching into a business which requires qualifications or licenses you do not have.

Market and Customers

You need to undertake market research to determine the size of the market for your products and services and to profile the characteristics of both the market, your competitors and potential customers. You should also assess whether you can offer something unique, better or different to the offers being made by your competitors and determine likely purchase quantities and price points of your products. Your market research should also include identify any issues which are likely to impact the market or the industry in the near future.

Operational Issues

Operational issues such as business location and the type of facilities required need to be investigated and addressed. It examines the space required immediately and assesses whether that will be adequate given your projected business growth at various timeframes. It asks how you will identify the most suitable location and type of space.

It should also examine how you will finance the required space. Will your purchase, rent or take out a long-term lease?

It examines the logistical aspects of operating the business such as how will you handle, transport and store goods into and out of your business? What distribution channels will you use? Do you need transport such as a car, van, truck or forklift? What other plant and equipment are needed to commence operations and what is needed over the life of the business?

Management Skills

This examines the management aspects of the business. It asks what types and level of skills are required to run this particular business? Who will manage the business? What roles are required and who will fulfill those roles? This includes marketing, finances, sales, managing information technology etc.

Critically, you need to examine the skills required by this business opportunity and compare them to your own skills. Do you have the skills required to undertake this business? If not, can they be acquired readily? Are you even interested in acquiring these skills?

Organisational Skills

This examines the skills required by the business. It asks how many additional staff will be required to operate this business idea. Will you need to recruit new workers? If so, what skills and competency levels will be required. Do you know how to recruit these staff members and are you able to effectively induct and train these new recruits?

Do you have sufficient knowledge as to the legal aspects of employing staff? Are you aware of regulations relating to salaries and wages, taxation, workers compensation, workplace safety and equal opportunity? Do you know where to go to obtain this information?

Financial Issues

This takes a detailed look at the financial issues relating to the business idea. This includes the all important questions of what capital is required to start the business and how will you raise the required capital. What is your estimate of profitability after all costs, including tax, have been deducted? How much do you require to live on per annum? How long will it take to breakeven.

You also need to examine your own skills in relation to managing the finances. Are you able to do your own bookkeeping? Can you manage cashflows? Do you know where to go for expert financial advice?

Sales and Marketing

This looks at what you expect your sales and marketing strategy to be. It takes a look at how much time and money will be allocated to the sales and marketing function and determines what the most cost-effective promotional methods should be. It also asks who will be responsible for this function.

Conclusions

The above is not an exhaustive list of questions that should be asked when conducting a feasibility study but it gives you the flavour of what it should be. When you have done your research and found answers to the key questions you will be in a position to undertake a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. It allows you to take all the information you have gathered and to make an overall assessment of the viability of the business.

Undertaking a feasibility study sounds like a lot of work, especially when you are eager to get started, but if you want to save yourself a lot of time, money, energy and grief, take the time to assess whether the business idea really is worth your investment. A feasibility study can help you sift through a raft of business ideas and allow you to discard those that are not worth pursuing and help you to identify the one that is most likely to be successful.