Business Start Up - Financing Your Online Business
Financing and Organization - This is probably the most important step when considering your own business venture.
You must have capital.
Not just capital to start, but also the money to keep going for at least 1 year.
Experts state that most businesses fail within their first year.
There is a simple explanation for that - lack of capital when building your clientele.
You cannot expect to open an online store and get sales the same exact day.
Most search engines takes weeks or even months to index your site and crawl your page.
An easy way to figure how much you will need is: Monthly costs + 25% x 12 Example:$849.
00 monthly costs x 25% = 212.
25 + 849 = 1061.
25 x 12 = $12735.
00 Some monthly costs possibly will be your phone bill, additional line fees, cost of your merchant plan per month, cost of your credit card processing unit or any other rented items per month, etc...
Granted, you will not need near as much to start with an online business as you would with a regular brick and mortar.
Add the 25% for your stock or inventory.
You may want more for inventory, if that is the case add up how much you think you will need for stock.
It is very wise to stock only the most popular items in inventory and go from there.
This will take much research on current buying trends and most popular items.
So figure up what you need to start, get organized and that is when you are ready to secure the capital you need.
A great place to start looking for capital is your familiar town or city bank with which you currently have a checking or savings account.
Request at least a 30-minute interview with your loan officer; this will allow you to go over what materials you have gathered to show your commitment to your business.
Some materials you may need are profit and loss projections, current banking statements, current income, assets you may have for collateral reasons, and a nicely typed presentation, also known as a statement of purpose, of why you want this loan for your business.
Being organized is a great way to impress any banking institution that may be able to help you with capital for your business.
Many banks will not do a business start up type of loan.
Look online for SBA (Small Business Association) banks that will provide help.
If a banking institution is not quite what you are looking for in regards to where you acquire the money, you can next look for federal and state grants.
Call your state office for state number, or simply look online.
Do not pay for free information!There are many advertisements and infomercials entitled "Get Free Money from the Government!" Do not pay $49.
99 for a 50-page booklet, which has hardly any useful information in lieu of complete data that is free online.
Federal and state grants are listed at: http://www.
grants.
gov.
Click on every possible link to see if you or your business type is eligible for a federal or state grant; or you can contact them via their online web server.
Grants are basically money to help you succeed given to you from the federal or state government.
Grants do not have to be repaid to the government.
You must have capital.
Not just capital to start, but also the money to keep going for at least 1 year.
Experts state that most businesses fail within their first year.
There is a simple explanation for that - lack of capital when building your clientele.
You cannot expect to open an online store and get sales the same exact day.
Most search engines takes weeks or even months to index your site and crawl your page.
An easy way to figure how much you will need is: Monthly costs + 25% x 12 Example:$849.
00 monthly costs x 25% = 212.
25 + 849 = 1061.
25 x 12 = $12735.
00 Some monthly costs possibly will be your phone bill, additional line fees, cost of your merchant plan per month, cost of your credit card processing unit or any other rented items per month, etc...
Granted, you will not need near as much to start with an online business as you would with a regular brick and mortar.
Add the 25% for your stock or inventory.
You may want more for inventory, if that is the case add up how much you think you will need for stock.
It is very wise to stock only the most popular items in inventory and go from there.
This will take much research on current buying trends and most popular items.
So figure up what you need to start, get organized and that is when you are ready to secure the capital you need.
A great place to start looking for capital is your familiar town or city bank with which you currently have a checking or savings account.
Request at least a 30-minute interview with your loan officer; this will allow you to go over what materials you have gathered to show your commitment to your business.
Some materials you may need are profit and loss projections, current banking statements, current income, assets you may have for collateral reasons, and a nicely typed presentation, also known as a statement of purpose, of why you want this loan for your business.
Being organized is a great way to impress any banking institution that may be able to help you with capital for your business.
Many banks will not do a business start up type of loan.
Look online for SBA (Small Business Association) banks that will provide help.
If a banking institution is not quite what you are looking for in regards to where you acquire the money, you can next look for federal and state grants.
Call your state office for state number, or simply look online.
Do not pay for free information!There are many advertisements and infomercials entitled "Get Free Money from the Government!" Do not pay $49.
99 for a 50-page booklet, which has hardly any useful information in lieu of complete data that is free online.
Federal and state grants are listed at: http://www.
grants.
gov.
Click on every possible link to see if you or your business type is eligible for a federal or state grant; or you can contact them via their online web server.
Grants are basically money to help you succeed given to you from the federal or state government.
Grants do not have to be repaid to the government.