Business start-up and expansion
Starting and running your own business is the dream of a lot of people - the thrill of being your own boss, doing it your way and the freedom to create what you want – it’s exciting and scary all in one and when you finally achieve success you wonder why you didn’t do it years earlier. Speaking from experience here.
Insights with Infinance by Brian Coogan
One of the key factors in all business ventures is ‘preparation’ … in every aspect.
While you may be great on the tools, running a business is a whole other ball game so it’s important to upskill in that area or have a partner that’s competent.
Get a good accountant, get on software like Xero, keep on top of your taxes, keep cashflow in front and above all, price for success financially. It’s okay to let jobs go where it’s just a race to the bottom on pricing.
You’ll need to back yourself financially for a while, if you’re requiring funding from the get go you’re not ready.
Banks will typically want to see two years financials to even look at you and finance companies that fund start-ups will want to see some skin in the game, asset backing, strong cash flow forecasts from your accountant, a business plan and an understanding around your experience in the trade and also running business or who’s mentoring you.
Google Government start-up grants, venture capital, seed funders and angel investors that may be appropriate for your new start-up venture.
Buying an existing business with trading history is a good place to start whether it’s the business and/or equipment or property and again your industry and management experience are key drivers to the success of any venture or funding proposal.
So if you’re thinking about it … working toward a new start in the new year, getting all your ducks in a row, talk with your accountant first, research ‘everything’ and get in touch with your licensed financial adviser (broker) to sound them out on what’s possible. They know stuff and can help point you in the right direction or arrange funding that’s appropriate.
For more on the above go to www.infinance.co.nz/insights
Written by Brian Coogan, Licensed Financial Adviser and Director at Infinance – Taupo.