Business Plan Essay Example | Topics and Well Written Essays - 1250 words

Business Plan - Essay Example Whether you want to start a small consulting business or start selling accessories, you need money to get the business started and operate it until the business is profitable (Attard, ). Finding the money to start your business may be a bit difficult; however, there are ways for you to obtain the cash you need. One way to obtain the cash you need to start your business is to get a part-time job. Savings from working a part time job can add up and in some cases, also many business owners start out by sharing their business time with a part time job. In order to save on money, you can start your business from home. In fact, most successful business owners started out from their home. Later on when the business begin to pick up you may find a suitable location. To save money to start your business you may have to live frugally at times. Living frugally does not mean that you have to starve yourself. It means that you do not have to buy everything you see just for buying sake. In order t o save effectively, you need to buy the necessary things. Another way to save to start your business is by applying for use of a credit card. A credit card is a loan given by a financial institution. The owner of a credit card has in his or her possession whatever amount the financial institution allows them to use with the expectation that they repay back the amount. Banks and other financial institutions often help new entrepreneurs to start their business by giving them business loans to do so. However, most financial institutions require that their customers have enough security to cover for the loan. If you are unable to find the necessary security that is required, you may seek the help of friends or family members to co-sign for you. By co-signing for you friends or family members will use their own assets to secure a loan on your behalf. Most ways persons get capital to start their small business is by borrowing from friends and family members. Unlike financial institutions, when you borrow from friends or family members you may not need to pay them back with interest. Money left as inheritance is another way by which many persons get capital to start their small business. When a person starts a small business through the means of inherited money, he or she does not have anyone to pay back and so the stress of saving for repayment purposes is out of the way. Another way of obtaining capital to start your small business is by using your insurance policy to do so. Life insurance polices that has cash value can be cashed in at any time and this cash used to start your business. If you own stocks and bonds, you can easily turn them into cash and use this money to start your business. In fact, sacrificing your stocks and bonds for your business may prove more profitable for you in the end. After you have your capital taken care of, the first step is to write a business plan. Why must you write a business plan? The reason being is that it is best to have a p lan to follow. Without a business plan to follow, your business may be doom for failure. A business plan should have an executive summary, a description of the business, a plan for how you will market and manage your business, financial projections and the necessary business support documents. In the body of your business plan must consist of a description of the type of business that you are desirous of starting. A marketing plan by which to follow closely is very essential for the success of your