You need a solid business plan. For instance, what are you selling and how do you plan to market it? What are your overhead costs? This should be a simple, cost and profit balance sheet. On one side, list the money that you will need, and on the other side, list a profit estimate (if you have one).
When you have an airtight business plan, you leave little up to chance. You will need to make sure that you add six months of overhead (at least) to your cost sheet to enable your business to “float” if the profit isn’t flowing in.
This is where we start to talk about funding sources. Will you save in a savings account? Will you invest in stock? Find private investors?
The less money you require for start-up, the safer your funding choice can be. The safest and most conventional method is a savings account. These are not high yielding, but they are secure. If you need a lot of capital, you may have to resort to “riskier ” funding: stock investment with a high yield, or private investors. These choices have the potential to be high-yielding sources, but they can also be high risk.
Private investors like to see a “growth potential plan”, which reads almost like a job interview on paper. Where do you see your company in 3 years? 5 years? 10 years? How do you plan to make that happen? Make sure you provide examples of companies- like yours- who have been successful.
Funding an online business can be intimidating, but when you have an airtight business plan, it makes the overall process fool-proof.
source: niceblogger
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