Session 7: Financing

1. Self-Assessment
2. Business Idea
3. Market Analysis
4. Management Skills
5. Business Planning
6. Forecasting
7. Financing
8. Support Help
9. Venture Launch
10. Monitor Progress
Graduation Certificate

Session 7: Financing

Three things determine the amount of financing you will need to start your business:

The amount you need to spend on "assets" or the equipment, tools, computers, or other tangible things you need to operate your business;
The amount of "working capital" you must have available; and
A "contingency reserve" you should have available in case things don't work out quite as fast as you hoped.

There is a very specific way these costs are determined. Your assets are generally the easiest to identify. Simply make a list of what you will need - then check with professionals in your field to see what you might have missed. Your working capital needs are determined from your Cash Flow forecast (Step 6). Your contingency needs are determined from your cash flow by making a "worst case" forecast, and looking at the extended working capital needs that would be generated by this event.

Once you have determined how much financing you will need, you can start the process of locating the "right" type of financing for each need. There are many sources to research ranging from banks to various federal, state, regional and local financing programs. A qualified financial counselor or consultant can be very helpful in identifying and approaching the "right" financing sources.

In this session, you will use a worksheet to identify how much financing you may need, and then evaluate different sources that may be available to you to locate the "right' financing for your needs. You can get help from your local SBDC, SCORE, MicroCredit or local banker.

Session Components:

Now - on to 7a: The Financing Proposal

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