Small Business Establishment, Development and Management.
The first step to setting up a successful new business is developing a business plan. This is important to not only define what type of business you want to start, but to guide, describe, explain and assist in a smooth beginning. The business plan will define what type of business you"re planning on doing, by telling what services or products you want to provide. This is needed for many reasons, investors and banking needs just to name a few. The business plan also will tell prospective investors how you plan on marketing and reaching potential clients. The plan will also tell how you plan to manage your company, payroll, overhead, and long term investments. You should also show how you plan to repay any or all monies borrowed while making a profit over time. The plan is a road map showing in detail what each phase is expected to cost and how you plan to manage funds to achieve your goal.
Some of the sources for funding start up of small business include your local bank with whom you have your personal banking accounts with. This is manly because you are already a customer and showing you want to keep your business with them, sometimes this is to your advantage. There are many state and local government grant sources listed at the SBA online website, these are mainly for existing companies or non-profit organizations. The SBA website shows a variety of financing options available to small businesses. The SBA usually helps start up businesses in the form of loan guaranties - the SBA guarantees loans made by banks and other private lenders to small business clients.
There are many advantages and disadvantages to using some of the typical funding sources. The advantages might include utilizing someone else's money to get your company off the ground and running, by doing this it does limit your profits due to repaying of loans acquired.