Important step for starting company Essay

NAME SUNEET KAUR To rise a New disdain or Project is very exciting no doubt but the ch entirelyenges to overreach into the system is very heart rendering. The aforesaid(prenominal) thing happened to me, when I took upon myself a designate to develop a cushioned ware Product Development system whereby I required chest space, systems, software development team, power back and assorted small activities, and of course all these requires budget, as I really didnt had any pay at my disposal.To over come this problem, the firstly thing I required to do was chalk reveal product line Plan for myself, as it is the foremost thing to do. It is a prerequisite to not only define all the Propositions for your business plans but also to estimate your budget and chalk out the source of funding.FINANCIAL PLANNING To pay my project, I took upon initiative the task of estimating the financial planning, which included initial estimate of resource requirements, associated be, revenue, iden tifying operating costs and to prepare budgetary plans.It also involved cash flow to vouch that there are no gaps between income and expenditure, analyzing breakeven levels and forecasting profits.PLANNING FOR extension OF REVENUE To find out the source that can really finance your business and fulfill your dreams, prepare a well planned figure including all your recurring cost that will go into a be Center like Income or value going into the hail Center, Cost of Office Space as well as infrastructure, Wages or Salaries of the employees, Cost of power back up and communication systems, Cost of miscellaneous activities etc.After charting out the business and Budget plan, I stripe upon the task to search the source of funding not only for the start up of the business but also expanding the business, and this source of funding is a back bone of your company.SOURCE OF FUNDING The borrowing depends on subprogram of factors like purpose of funds, your borrowing requirement, repayme nt period, the availability of security or collateral etc. Bankers will never lend against the full candour value of property, the availability of the add will be limited by the equity or residual value of property.All these points count if you specialize to search for the source of funding. There are several sources for funding, and for me I started with all of a sudden TERM AND MEDIUM TERM BANK LOAN I took upon myself to get the short term and medium term bank loan. For the repayment of this loan it took me two to five years. For sum of $5000, the security is required in the figure of private or company property, fixed or floating complaint over the books debts and assets of the business. Interest is fixed at between 2 per cen clipping and 5 percent over the base stray at the time the loan was taken out.Arrangement fee is also charged on new loans. This loan system was best suited for me as the rate of interest is just fixed for 2 to five percent. It is more opportune then the another(prenominal) loans because security required is very less.BUSINESS ANGELS Business Angels locates in new and developing enterprises. They, rather than start their own business, invest in someone elses Investment proposals and initiatives. Those companies who have skilled and technically qualified people, business venture, capital and skill gives a greater take on to succeed with financing from business Angels.There is a site called as a Business Angels Pty. Ltd. Who provide the facility for meeting the both angels and likely Entrepreneurs. The needs of the business are matched with the angels criteria. There are lots of other sources of financing too like Long term loans from banks, Share jacket crown from private Investors, Debentures etc, Mortgage debentures, Commercial mortgages etc. but the system of Business Angels are best if starting a New Company because it depends on the negotiations between the two parties.