Business Finance for business start-ups

If you are thinking of starting your own business, here are some things you should think about:

Do develop a relationship with your bank manager. In your new business, finance will be key and you may need access to additional funds at short notice.

Don't try to start a business that you know nothing about. It may seem like a great idea to open a pet shop because you love animals, but those fluffy bunnies need to be fed, watered and looked after. Your business finance will soon be swallowed up by hidden costs if you are in a business you don't understand. So do your research.

Do be aware that your business finance projection should cover at least the first two years of trading. Initial investments can be swallowed up quickly and you should have a contingency in place.

Don't lose sight of the bigger picture. It can be easy to get bogged down in the nitty gritty, but this is your livelihood and you need to constantly be on the lookout for new and innovative ways to move your business forward.

Do take advantage of the help that is out there. Training may be available, or your local authority may have advisors who act as mentors. If there is help out there that is free, use it, and save your business finance for other expenses.

Don't become isolated. Working from home can look ideal when you are stuck in rush-hour traffic, but it can be lonely. If you have sufficient business finance in place, maybe renting a small office in a business centre would be a better solution.

Do take advantage of new technology. If you're reading this online, you know that the internet is a fantastic tool for marketing and sharing information.

Don't work for less than you can afford to. A passionate desire to succeed may take you a long way, but if you can't afford to pay the mortgage you'll be running your company from the bus shelter! Your business finance advisor will help you to set realistic goals.

Do become familiar with the rules and regulations surrounding employing staff. If you are planning to employ other people, you can get into serious trouble if, for instance, you ignore health and safety regulations.

Don't take your eye off the competition - it's essential that you're ready to respond to your competitors and to new developments in the marketplace. Once you have established your business, utilise some of your business finance to carry out market research to make sure you're staying ahead of the game.

Do be aware that when you become self-employed you will lose company perks such as sick pay, pension plans and paid holidays. Make sure that your business finance plan takes this into account, and where possible look at insurance policies that will protect you in the event of your being unable to work.

Don't be overwhelmed by the task ahead. Make lists and work your way through them. Remember, the only way to eat an elephant is a bite at a time!

Do check out finance initiatives that may be available to you. As an example, you may, for instance, qualify for a grant from the Prince's Trust. Your business finance can come from a variety of sources, so look around and make sure that you take full advantage of schemes available.

Don't panic! If you do your research properly and produce a sound, realistic business finance forecast, you could be on the first step to a successful new venture.

For more information about finding the right business finance for your particular requirements, take a look at www.diyfunding.co.uk

Keith Park