In order to start and run any business, you need funding or finance. The money you will need covers the start-up and operating costs. How much that will cost you depends on the type of business idea you have in mind and the scale of its operations. In order to arrive at that figure, you will need to estimate the costs. You may never be exact. That is impossible for any business that has not even been started. However you need to have at least a rough estimate in your business plan.
Once you have arrived at that cost, the next thing is where the money will come from. What will your sources be?
Some of the sources of finance:
- Your own savings, if any
- If that is not enough, loan from family and friends
- Commercial lenders, such as banks and leasing company
- Credit cards