Financial planning or financial planning services is a must not only for any new business, but also for professionals who do not know the monitory worth of their skills in the market place. Mentioned below are ten top sources for financial planning that are available prior to commencing any business.
This source of investments is the most easily accessible. It can be used during the early and planning stages.
Friends and Associates:
Financial advisors believe that this is good for initial cashflow shortages. However, remember that the golden rule is that one must not mix family and friends with business.
Early stage funding in relatively small amounts can be sourced from an angel investor. Even a small amount of the right type of investment can have a huge impact on the future of a small business.
Although the popular impression is that banks don’t lend to businesses, financial advisors say that the rule remains ‘if you don’t ask for it, you don’t get it’. It is advisable to make use of short term loans and overdrafts to balance your initial cashflow shortfalls.
This is a relatively good alternative financial planning tool. However, please note that there are both positive and negative aspects in having a third party involved in the cashflow management and accounts receivable process.
Grants and Various Government Support Schemes:
Although there may be restrictions that come with taking money from this source, financial advisors believe that grants and government support schemes may be among of the best options for anyone seeking to start a business.
Lease and Hire Purchase:
This is a great source of financial planning leverage that provides support for short term capital acquisitions. However, it is advisable to evaluate the taxation implications involved with such a process.
Financial planning services believe that this is an excellent source for medium and long term loans for arranging substantial sums of capital that may be required for initial investments.
Financial advisors believe that corporate investors and financial planning services are constantly searching for a top rate of return. If a business is likely to be profitable, such an option could have a strong impact on company’s financial planning and business decisions.
Private Equity with Venture Capital:
This is a great option as investors or financial planning services become partners in growth and back the project not only by providing funds, but also by playing a supportive role in the formation of business and financial planning strategies. This can produce significant amounts of investments for even more ambitious businesses.
Financial advisors and financial services not only help you plan your future investments strategy but will also give you important clues about where you should concentrate your financial planning efforts.
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