BUSINESS IN GENERALIn this section of the website, business in general, I would like to be a more relaxed and interactive. I will provide some of my opinions and would really appreciate that you, the reader, will also provide yours. When starting a business one, most of the time, needs capital.This capital can be raised by receiving finance from the bank, using OPM (Other People's Money) or if possible structure your business to provide cash flow from month one.
CASH FLOW
Let start with cash flow, in my opinion the most important part of a business. I will use my accounting firm as an example.I started Dryk Financial Services with no capital and had to structure my fees charged that I receive income from the first month. I structured my monthly clients to receive a monthly retainer fee from me. This included all work to be done for the year from March to February. I still work on this principle for the most of our clients, mainly because clients can also budget for our fees.This is just an example.Every type of business will have it's own unique way of structure immediate cash flow.
FINANCE FROM THE BANK
For a starting business a business loan could be the most difficult option.Any bank will normally ask for collateral in form of a property to secure a loan. A business loan usually stretch over a maximum period of 10 years.I always suggest that we raise a further bond for a client if possible. FINANCE FROM AN INVESTOR (OPM) Sometimes finance from a private investor is the only option available. When dealing with OPM you would need to communicate regularly with your investor and provide management statements. This will not only be done in order to keep your investor up to date of the the monthly income and expenses, but also build trust.
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