Most businesses need financing. Cash flow is different from profits, so profits don’t guarantee money in the bank. There’s financing needed to manage starting costs, inventory, waiting to get paid, and other factors. Much of that is what we lump together as “working capital.”
Most people think of financing as debt, borrowed money. In this context it also includes investment capital. Either debt or investment is outside financing that helps a business meet expenses and grow. While some smaller businesses get by without financing, and even some medium and large businesses that are mature and stable and conservatively managed can get by without financing, most businesses need some outside money to get started, to expand, and to supply their regular needs for working capital. (Working capital, by the way, normally means cash in the bank to cover cash flow deficits caused by normal flow of the business. Technically, it is current assets less current liabilities. )
Your business plan should tell you whether or not you need financing, and how much. The plan should estimate cash flow for your company and if cash flow is negative for any good reason – and there are good reasons – then you plan to add money as either loans or investment. The most common reason for needing financing, by far, is “Accounts Receivable.” That is the accounting term for the amount of money a business is waiting to receive from customers for sales already made but not paid for. Most business-to-business sales involve delivering an invoice and waiting to get paid. Businesses that sell this way have to deal with collecting money owed, and while they wait to collect, they have bills to pay. Therefore, they need financing.
Another common reason for financing is paying for inventory. To sell things you need to buy them first. Often you have to pay for your inventory before you sell it. That means you need financial resources to deal with pay cycles.
Start-up businesses often need financing to cover their initial costs and expenses while they are starting, before they can start selling.
A correct business plan process will point out the gaps that need to be filled with financing. For a start-up company, use the plan to help calculate needs and early expenses and the early deficits as the company gets started, and then plan to fill those needs with borrowed money or investment. If you can’t get enough funding to cover the needs, then you must either change the plan to reduce the needs, or don’t start the company. For an ongoing company, use the plan to calculate cash flow from normal operations, and turn to financing as needed to support working capital requirements.
Don’t be surprised by needing financing. Most businesses do. Some smaller, cash-only businesses get by without financing. They sell for cash, buy in cash, and don’t spend what they don’t have. It’s easier to get by without financing as a service business than a product-based business, because you don’t have to deal with inventory. A home office is less likely to need financing than a business location you rent. A one-employee-business is less likely to need financing than a business needing employees.
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really what a wonderful explanation
I am inquiring on how to get funding for my business and how to get the government grants that are offered in new york.
Please advise
Thank you
Lisa
Hi Lisa,
We have a number of funding resources that we recommend including a database of venture capital sources that we maintain inside of Business Plan Pro, partnerships with communities focused on start-up funding, and a wonderful relationship with the Social Enterprise Alliance to help non-profits develop earned income or social enterprise strategies for non-profit funding.
For grants specific to New York City, a good place to start will be to search online by geographical area and then narrow your search by mission or purpose. Most grants are awarded for ideas that align with the specific objectives behind the grant.
Jake Weatherly
Director of Customer Experience
Palo Alto Software
I am very much interested in Real estate business and Agricultural businesses as I see that it’s a demand in this developing nation.
My success in these business will enable me to assist the disadvantaged and unfortunate people in the rural areas where Goverment services such as health, education and others such as road, water supply sanitaton is not reachable regularly.
There are suitable geographical land features for agricultural purposes or even for building rental houses for business.The Goverment of the day don’t have money to use the land for genuine purposes in order to bring vital services to the people. Therefore,
people are flactuating into urban areas building settlements and live in scrap houses and poor lining condition. Are they any means to help me seek financial grants to venture into this business so that my success and profit can be used to bring development in this developng country?
I am tryoing to start my own catering and party planning business, but the problem is how can I obtain the financial help that I need for my start?
I would like to start my own concierge business in the Dallas/ Fort Worth area, but I need funding for business cards, flyers and so on. I have never done this sort of thing before. I don’t want to mess up the one chance I might have by making some huge mistake. Do I really need start-up money for this kind of service oriented business? I would like to put out flyers, but maybe there are other avenues I might try. Please help.
I would like to start an ethnic beauty supply business and I have transferred all of my ideas from my head to paper but I need financing and that’s when I can hit the ground running! I am so excited about my ideas and I have been thinking up new ideas for years but I need to start thinking of ways to get financing as passionately.
Hi,
I am interested in starting a janitorial buisness and dont know where to find grants from. Can you help me.
I AM VERY MUCH INTERESTED IN STARING A BUSINESS IN THE FIELD OF TOURISM.I AM MORE INTERESTED IN STARTING A SELF CATERING LODGE CAUSE I HAVE REALISED THAT THEY AR IN DEMAND,AND THE IS NOT MUCH IN THE COUNTRY,BUT MY MAIN CHALLENGE WILL BE FINANCE
Hullo every body,Iam Lilllian Nankungu a Ugandan aged 28 years old. I have a degree in Social Sciences and i have tried my level best to look for a job since 2004 when i finished school but i have faied to get one. so i realy want to start my own Restarant and out side catering business .but my biggest problem is capital.Please help me.
Hi my name is Alicia and I’m trying to start my own cleaning service, but the problem is how can I obtain the financial help that I need for my start? I need funds for the equipments and some materials. Could anyone please help!!!???
Hi
I need alot of info regarding drawing up a business plan and funding for my business.I got the machines but i need funding to manage my business
i have ideal place to start lodge and geust farm but need financial help or investor to assist me pls help
my place is setuated north west of Namibia Kunene region anny inverstor is welcome to started with me lodge and geust farm
Hi,My name is Trina and I own with two partners a
three year old medical billing business We are looking to expand the business and are in need of assistance with grants for expansion in the Dallas Texas area. there is such a need for good medical billing services. Doctors that care for us are loosing
thousands of dollars monthly and we are agressive in
our business and get every dollar possible. we are a complete medical billing business and provide other services as well and help will be greatly appreciated.
Hello,
I am a fitness professional who has a fitness program for kids that I started in Hawaii. I am currently living in Southern California and need some funding to start here. Mainly for flyers, mailers, postage, video production etc. Does anyone know of any state funding or grants for fitness for kids? Or is there anyone out there who might know of an investor who might be interested? I would eventually like to franhise my program as well.
Thank you for your time.
Aloha
I currently own a 10,000m2 land in Maputo 300 m far from a road linking Maputo and South Africa. I am looking for finance to start a BB ( Bed and Breakfast)
Does Anyon eknows of a funding being available for this type of business in Mozambique.Probably if anyone knows about an inverstor that might be interesteed.
Thanking you in advance
Lorino
Hello,
We are a music production and management company. We have product and signed artist. We also have a studio to record the artist with. Our problem is the lack there of working capital. We are looking for grants or any other type of funding to assist in this matter.
The music has received great reviews, but we lack the capital to keep us afloat until the release of our music. If there is anyone out there who can assist please feel free.
http://www.immaculateent.com
my name is Dazz, i’ve come to realize the pointlessness of having a job and doing something that your hart is not passionate about.i mean, one only lives once.
so, if there’s someone out there who can help.pls pls do something that you’ll never regrete,help me start my dream, not as a business but as my passion
this may very much sound like a clishe, but i sincerely asure you, it most defenitely not. so please!!!
South Africa
i need funding for starting a new business. the new business is a cafeteria. i need start up money. can you help me? thanks
My business is going to be a Tattoo Parlor on wheels and do house calls also. I am curious to how people manage to receive thousands of dollars off of writing a business plan and signing their signature a few times. Help me come up with $20,000 to start my business.
Where is a good
place to go to get into contact with investors for free… both private investors and
major foundations.
My name is Jibril and I am international student here in NYC. I have
some land that I could use to grow agricultural products such as
wheat, sugarcane, and corn. And I would want to know if your company
is looking in to invest in some parts of Africa. Which I have my
contacts in. I can send you my information upon request. I am
graduating this summer. I look forward hearing from you.
Sincerely Jibril. A.H
am a student of moshood abiola polythecnic abeokuta,nigeria,am good at composing and music.i need a GOD FEARING BEING who can help me to go to the studio to make my track. i base my music on gospel and enviromental basis.i will be very much grateful if i can found help from any Godfearing human being.
i live @ no 62 obafemi awolowo avenue isale igbein,abeokuta,ogun state,nigeria.
Tel +234 808 664 7972.
I just ran across a website – www. afrifunding. com who happens to match investors and entreperenuers and providing funding. They only cater for businesses that are to be implemented in Africa. It seems the website is new though
I want to open a manufacturing business and don`t know where to get funding.My initial plan is to buy a toilet paper making machine.
I wish to start a timber ( chipboard,melamine and veneer board ) cutting and edge business and am looking for anyone interested in funding such a venture. I have 20 plus years experience in the kitchen and cupboard industry and have clients ready and waiting for me to produce, who will support me.
I eagerly await you reply and thank you in anticipation.
This is a wonderful explaination ,can you please help me with advices on how can i get funding from local funders and international funders ,im currently in south africa ,thankx
Good day.
I am very much interested in starting my own business. I would like to open a hair salon. I do not have funding. Is there an organisation that help loan people money to start their business? If so, what is the procedure. The hair salons for black people that we have in Bloemfontein are really not up to standard. I want to make a difference. Can you plaes help me set an example. I really love it when I see our sistas with beautiful hair, there is so much that can be done. I just need a kick start.
Thanks.
Dear Sir/Madam.
I am a gentleman of a kenyan nationality aged 21 years,and having successfully completed a diploma course in business management.
Owing to the state of my family interms of finance and also the current economical state of my mother country,jobs have become had to come by not to mention access to bank funds and government loans which have been hampered by immense corruption and tribalisum.
I only see foreign assistance as the only leeway to a future worth having rather than get into crime.I therefore appeal to you to help me get financial asistance to perchase a plot to start a rental business. This plot that have spoted and i regard it as ideal is going at the rate of 2million shilings kenyan carrency.
I will be most delighted if you help me get this fund because it is the only way i can get out of poverty and also help my fellow youths in my area(kariobangi slums near dandora area).
i am in the real estate field and i would like to make my own TVshow concerning real estate. i would like your help in putting this idea properly on paper to make it come true,
thanking you in advance
nayla roz
Dear Sir /Madam
We are one of the touroperatour in Ethiopia beside the tour we do several kind of business we also help people that are intersted to invest in the country,or get join venture,or get parnter ,if you are intersted to open new branch office or company,import export any items ,to get skild and non skild man power,etc we will help you ,
aberacoffee@yahoo.com is our e-mail and 00251911249079is the phone
We know how, where, when ,and why.
Come and let’s work togather for our mutual business relation ship.
With best regards.
ATO PLC
hi everyone
my name is samisalik, and am from Kashmir, India.my cell no’s are 09906470460, 09419570892. i am Postgraduate in information technology (by chance), apart from that i am a victim of dirty politics of india. i was a medical student here for about 4 years and was studying Dentistry.but because of politics our College was closed down..since then i long for that part of my career.my parents and my elder bro, all are doctors..since i could not become a doctor..i have a dream of starting my own medical / dental college..but i have no money….please help me.even if i have to mortagage my ownself for that….please help to realise my dream and help me to make those students become doctors who cannot afford to travel out of their state.and cbecause of expensive studies here. my total project is around 1 million – 1 1/2 million US Dollors.please help me
my name is mbuso and my patner is bongani sibuyi our cell no is 0713989119 from south africa we want to open a school where we are going to teach people how to use computers becouse it is important for people to know computers nowadays
we need 120000 rand or us dollars please help use
Yes i was wondering how do I get the proper funding for start-up money.Im a new company trying to get on its feet and i would really appreciate the help i really do need it.
hae.am looking for someone who can assist me with funds which is returnable to start a community project on water conservation and utilization.the pump cost around 150,000 kenyan money.this is my passion to work and at the satime give back to the community.
We are looking for a business/private person to fund our business. We are two partners (Black and Coulered) and we are going to manifacture coffins in South Africa, Pretoria. We already set up a business plan but are lacking some funding of about R50,000.00. This is just to cover the startup and one month expenses. Please feel free to contact me colin.oor@gmail.com.
I have acommunity based tourism project that needs funding.its also profit making run by a strong management team.
I would like to start an internet cafe and install printing machine,scanners so the problem with me I do not have funds to start all this,so could you please help me with fund.
My name is mwakaje I want to start agricultural business Im about to complete my first degree
So how can you help me!!!!
Dear Sir,
I have here in Pakistan many humantrain projects,I need funding.
If you have any option than please reply me soonly.
I am waiting your response.
Thanks
Regards
Luckky
luckky_int@yahoo.com
Cell: +92 323 2948522
Pakistan
I am starting up a automobile servicing company, to deal with servicing of cars and trucks, which I have all the machine needed to startup. But I need some cash to acquire the land and installation of the machine in order to be able to start. Pleasse advice. Thank you.
Fahd Mohammed,
Fadab Company Ltd.
Just wondering if there is someone out there who live in Canada and is knowledgeable about “opening a small business”. Someone who I can talk to, ask questions, and discuss some issues. I would really appreciate it if you could email me at (s3rious.inquirer@yahoo.ca), I really need an opinion / advice.
Thanks greatly,
Ms.Meng
I have a piece of Land suitable for Livestock, Fish farming and Vegetables and I need partners, I am as well want to work with individuals or Company in real estate development in Zambia( Housing, Shopping malls and offices)
I hope to work together with such and thanks in advance
Call: +260 977 348407 or +260 966 734840
Email:maranathaempowerment@gmail.com
Ellis
Hi i live s.a,durban. I am looking for finance to start my own small business. I dont mind paying a small profit till i pay of my finance. Its a great business that only needs a laptop and no door to dooor sales. Pls help to be back on my foot. I have great business opporunities that i would love to do but no finance. My cell is 0796239971
a have an existing trellis door and roller shutter manufacturing business that needs funding. my monthly turnover is R800 000.00 but i need to grow the business to r3000000.00. If there is seroius investors out there please mail me on marsec@mweb.co.za or you call me on 27746774511
Hullo, my name is SOWATI , a university student wishing to begin astationery to help supply books within the university, provide photocopying services and computer services which are really lacking in our university which make us as students get hard time in accessing these services. we so far have $1000. Need like other $30,000
Your financial support will help save i and fellow students.
Thank you
Email:
Hullo, my name is SOWATI and my other friends Perez and John, we are university students wishing to begin business in stationery around the university.Need $30,000 to add on the $1,000 that we so far have. Our email is sowatsowal@yahoo.com
Thank you
Hi, my name is Chana from Lusaka Zambia. There is a boom in the bulding sector in Zambia both in business and residential premises. I see an opportunity to provide aesthetics to these buildings in interior design/decor and landscaping. I am interested in starting a business that will not only sell interior design hardware, provide landscaping services and at the same time link these with intrior decorating/designing/landscaping consultancy services. I would like to here from people with experience in this field, those who can provide me with ideas for a business plan and contacts for potential funders.