Your financial needs will vary significantly depending on the type of business you plan to launch. You will want to create a proposed budget, as well as financial projections, to ensure that you are financially prepared and to pitch to potential investors and lenders.
Create a Budget and Financial Projections
Before you launch your business, you’ll want to confirm that there will be sufficient revenue to be sustainable. You’ll also want to estimate how long it will take to generate a profit and how much the anticipated profits will be. For instance, a service-based consultancy business will likely have very little startup costs, but a product-based business, such as a catering business that you run from your home, may have more upfront costs.
Financial projections are estimations of how much money the business will earn and spend over two to three years. If…
