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Step 3: Plan your finances
Starting a small business does not have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time start-up costs for your business (e.g. licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (e.g. rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.).
Those numbers combined is the initial investment you will need.
Now that you have a rough number in mind, there are several ways you can fund your small business, such as via financing, small business loans and grants, angel investors and even crowdfunding. You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business. You may find that a combination of the paths listed above work best. The goal here, though, is to work through the options and create a plan for setting up the capital you need to get your business off the ground.
Those numbers combined is the initial investment you will need.
Now that you have a rough number in mind, there are several ways you can fund your small business, such as via financing, small business loans and grants, angel investors and even crowdfunding. You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business. You may find that a combination of the paths listed above work best. The goal here, though, is to work through the options and create a plan for setting up the capital you need to get your business off the ground.
