What is keeping you from joining about 2.17 million active businesses in Australia? If you have a brilliant idea and you have the skills and guts to launch and grow it into an enterprise, take some risks and get on with it. Read on and learn about starting a business from scratch.
They say that money is never a hindrance to the success of the business. Well, it is, but there is something that you can do about it. Lack of financing is one of the major problems, but it is entirely possible run a business without it, if you know how to do it right.
Every business needs capital. You need to pay for a startup fee, which includes some paperwork and registry for licensing and permits, equipment, supplies and operating expenses. You may have to pay legal fees, affiliations (if applicable) and don’t forget your employees’ wages. So, how do you plan your budget considering the low amount of cash you have?
First, you can lower your costs. Create a business budget that includes the following:
How much money do you currently have? It should include ready cash and assets that you can easily convert into cash.
Income sources: If you are a sole entrepreneur looks into your other income sources. It is important because you may have to dip into it when you run out of working capital.
Fixed-costs: take note of the expenses that have to pay, whether you are making sales or not. You must have sufficient amount of money to cover operating expense of your business.
Fixed-costs include the following:
- loan interests
- property taxes
- utilities expenses
- all other expenses that are not dependent on your production or sales
Variable costs: Your profit depends on the level of production and sales you make and these are also affected by the things that you use to produce them. Some of the examples of variable costs include raw materials, marketing and production costs, transportation, wages of contractors and other related to the daily administration and operation of your business.
While there are a few expenses you cannot avoid such as licensing and legal fees, you can find ways to reduce your daily expenses by looking into the things that you really need. You can also opt for cost-cutting. You can reduce your expenses by finding cheaper supplies and equipment, being the sole proprietor or hiring only the people you need to get the business up and running and finding a smaller office space or using your own home as your first office.
Second, you can increase your available capital. One way to do this is to get a small business loan from ALC Commercial. We offer various types of business loans you can tailor your loan to meet your business needs. Get the right amount of loan to get your business started, or inject cash into your working capital. If you need money for starting your business or financing expansion or even for an exit strategy, we got you covered.
Contact ALC Commercial today!