It’s undeniable that starting a business is expensive. Even if you have the capital to start the business yourself, it doesn’t take away from the fact that new companies simply swallow money early on.
Planning for funding acquisition is an essential aspect of any business plan. Being able to convince a bank that you have sought various financial avenues for funding will help them in their decision to lend to you.
One way to receive funding to be able to start a new small business of your own is to consider approaching a company that can offer a self-managed super fund loan. SMSF loans can free-up funds you have already saved in pension contributions. They can release valuable cash, allowing you to borrow money up to three times the amount of your super fund.
Typical Outgoings to Consider When Opening A New Business
There are many initial funding obstacles to overcome when starting a business. Among the crucial factors to consider when planning for funding are:
- Renting a location – Finding a desirable place to run your business from is vital but often a pricey part of setting up your new business.
- Buying stock – Successful stock forecasting is essential to keeping initial costs as low as possible.
- Marketing – Promoting your business via online platforms, social media and in local and national media can be very expensive and should be budgeted for carefully.
Many financially minded people are looking to use their self-managed super fund to purchase a private or commercial investment property. After all, super is your money, so why not put it to use to invest in property or a business?
Investing in property is a very popular way for Australians to grow their wealth. More and more people are using the money they have saved via their super funds to buy a property as part of a self-managed super fund (SMSF).
How Much Funding Do You Need To Launch Your New Business?
Planning for five years of growth is a realistic way to determine your funding needs. As every single business has different initial needs and requirements, there is no ‘one size fits all’ financial package that will apply to all businesses.
Keeping costs down is, of course, every new business owner’s top priority, but being able to fund your business enough to be able to make waves in your sector should be equally important.