At the start of each year most people are very enthusiastic and full of new positive resolutions, both on a personal side as well as from your business plans perspective in 2018.
However, there are many of us that have the reality that the month of January can be quite tentative, in terms of starting up a new business for a number of reasons. The first few weeks of the year are often a gloomy time for small business owners. But your business doesn’t necessarily have to suffer, with others taking proactive steps in January, why can’t you?
Perhaps financing your business might be your biggest bug bear in terms of starting up your venture in 2018. Establishing a solid financial base for your new business is essential. You need to be clear about how much money you are going to need and where to find it.
You also need to understand what the different types of finance can offer you. The right financial mix will cover your short term needs and allow you to make the most of growth opportunities as they arise.
To ensure you’re not battling against the tide of competitors not only in January, but through the new year, you need to work out how much financing you require and when you will need it.
A start-up business may spend more than it earns for two or three years. The amount of financing you need may continue to increase long after you reach breakeven.
If you’re thinking of starting up a seasonal business, you will have to take into account the predictability of cash flow peaks and troughs. It might be an idea to show your forecasts for sales and expenditure, and what your cash position will be each month – including capital costs, such as purchasing equipment.
Most important of all, don’t wait until your need for extra funds becomes urgent. This is the time where you need to assess which funding you may need and what is suitable for you and your business.
However, it can be difficult to borrow money from a bank unless you can point to an adequate initial sum that you have invested in the business. In addition, if you were to exceed your overdraft limit, you will incur a bank charge and possible higher interest rates. The bank may also bounce your cheques, damaging your credit with suppliers. This is why other financing options may stand you in better position financially.
Here at Aurora Capital, we are funding consultants, assisting UK businesses raise the necessary capital they require to facilitate future plans in the company. We have access to 15+ different lenders in a range of different lending markets, enabling us to source the most competitive solutions for your business. Not only will we strive to source the most competitive offers, but we can advise you on the best product for your business moving forward.
Are you ready to kick off 2018 with a tremendous first quarter? If you would like to contact us further about activating your business plans or have any questions for our team, please give Aurora Capital a call on 01371 870 815. Alternatively, you can email us via firstname.lastname@example.org.