Ways of Setting up Business: Free course

The start-up capital is the first hands money invested to start business, it is their own money or borrowed money-either in bank, friends or family. The money’ are  spent by business to make money. For examples,  the owner buy printer machines, before he run his printing shop.

When having less money, it is not necessary to invest to find market gap- researching market gap requires lot of money; so it is better to assess your financial status. The person should think carefully in borrowing. Otherwise, business person borrows too much & later find difficult to repay the debt.  

If start-up capital is less, in short-term, person can look for ways to earn money- this can contribute to a full amount for business to start.

In order to start successful business, skillful business ideas & startup capital goes hand in hand. Thus, person must be skillful & have enough money. These is very important things. There’s no set of instruction to follow in starting business, therefore, person must make research or get information from other source to start up the business.

Purchasing an Existing Business

Instead of starting your business, you can buy an existing business. The first thing to consider is, why the owner of the business sell it. The owner may be old or just tired of running the business or business might be in trouble. Their business record (sales revenue & expenses must be checked) thoroughly, examined the various record that kept by a small business & find value of business assets. The asset is anything of value owned by a business- it include, equipment, stock & even debtors ( money owed to the business by other people). It is important to know that value of these assets is correct.

It is important to find out their liability. The liability is a money owed to someone outside the business. This could include the bank loan or money owned to creditor ( outside business that supplied goods on credit & a not yet been paid). The ways to value business is to subtract the liability from the assets.

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