| Bizcovering > Accounting |
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Funding a New Business |
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by Archy22, May 28, 2007 |
One of the toughest thing in starting a new business is estimating the start-up costs because these are the factors that are volatile and subject to change unpredictably. Here are a few steps to help you in estimating. |
- Have a business plan. Jot down the business plan because it helps you in estimating the cost used to set up things from the scratch whether it is office supplies, office space, number of employees' salary you need to manage, insurance, etc.
- Start from a smaller model of your business, but aim high and keep improving.
- Calculate your initial time flow. Time is equivalent to money here.Also figure out the initial cash flow.
- Correctly estimate your start up time.As I said earlier, when you start a new business, time can be equivalent to money.
- Be realistic about the cost of money.Self financing may help to some extent but not riskable entity for larger business.
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