December 20, 2014
The first steps into business can be exciting and scary. They can also be the point where most get lost or give up. You have the idea, you have the skill, you have the time but do you have the finance?
Not every business will need a business start-up loan but if you have established that it will, don’t get lost in the options or overwhelmed with where to begin. There are many options.
How do I know if I qualify for a government start-up loan?
If you’re about to launch a business or have been trading for 12 months, you may qualify for one of the government start up loans. In 2013, over 500,000 businesses registered with Companies House. This number is set to rise and many started their journey with the help of a business start-up loan.
In order to get started, a business plan will need to be put into place. This is something that most entrepreneurs can begin by themselves but with the help of a business consultant in Hertfordshire it can simplify the process and offer expertise, where required around obtaining one of the start up loans.
Why does a start-up need a business plan?
A business plan will help an idea come to life, as it helps to predict figures, set goals and make a plan of action as to how they can be met. Businesses and lenders need solid figures to work towards. It also helps to establish whether an idea has legs and can make back the money that it borrowed from a business start up loan and operate in profit.
When do businesses repay their start-up loan?
Typically, the terms of repayment of the start up loans are over five years, with an interest of 6%. Once a business has been approved for a business start up loan, following the business plan through is the next step.
How can I keep my small business costs to a minimum?
The more careful you can be about your business finances, the greater your chance of securing funding of one of the business start up loans (and the less you will have to pay back)
Consider the following:
- Do I need brand new equipment?
- Have I found the best supplier, with the best prices?
- Do I need a business premises? If so, is it flexible for growth?