Business funding for starting a business.
Flag the Businesses for Sale – You’ve got the idea, the energy, and the skills to make it happen… Being the entrepreneur you’re happy to take the risk, develop the market, and find out if it really works.
Starting a business can be fun, exciting and rewarding
If you are considering starting a business you must consider a number of issues including:
1. The Market
- What is the market you intend to enter
- Is it a market in its infancy, maturing or in decline
- Is this market large enough for another business of this type
- Is it easy for further competitors to enter the market
- How long will it take to build up a customer base
- How will your potential customers know you exist
- Can you secure an appropriate location
- What are the terms of the lease you have to commit to?
3. Human resources
- Can you find the people you require to operate the business?
- Have you got a reliable source of supply,
- Have you got alternative sources of supply if your preferred supplier lets you down
- Can you secure a long term relationship with the supplier
- Is exclusivity an issue
- Will the exchange rate be an issue
5. Financing Issues
- How much do you need to invest in plant and equipment to operate the business
- How much do you need to spend on advertising and promotion so that the market knows you exist and what is the most effective medium to use
- What are the working capital requirements (cashflow) the business will need?
- What are the fixed overheads will the business have on a weekly, monthly and annual basis
- How many sales does the business have to make before it breaks even
- How long will it take for the business to reach breakeven point, will you ever reach it.
- Business funding – Business finance New Zealand
This information was provided by Julie Millar, a partner at BDO Spicers
Do your homework!
New venture funding
Funding is always more difficult with new untried ventures. Besides the usual family, friends and acquaintances, there are investors that will look at well-structured and thought-out business ideas – we are looking to formulate a database of such in the future as most of our lending is done through the larger institutions. If you feel your concept is likely to be supported by a bank, or would like to know if your venture is likely to be suitable for funding then please complete our enquiry form.