Obtaining funds is a key task when it comes to starting a business and succeeding in an entrepreneurial venture. But money itself is not everything.
It is also important to calculate the optimal amount that needs to be raised, choose the most suitable source of financing, and draw up a good treasury plan. You also need the most suitable partners for the project and know how to manage accounts.
Tips to correctly plan the financing of a towing company startup
Calculate the amount
Each business project requires a different amount. The first thing is to calculate all the costs that will be incurred to develop the product or service, as well as the expected income plan. It may seem very obvious, but many entrepreneurs have a hard time sitting down and doing the numbers. It is worth being meticulous in calculating costs and not neglecting those that are largely forgotten, such as notary and registry, and on the other hand, marketing and communication.
One of the most relevant items is that of personnel. The success of the towing company san jose startup will depend to a large extent on the team behind it. Here, it is essential to assess whether the remuneration will be fixed or variable or if incentive plans such as stock options will be included. It is advisable to reduce the fixed cost item as much as possible and play with elements that allow a variable cost. For example, renting a place instead of buying it or paying a bonus based on results, reducing the fixed remuneration.
Experts advise calculating an amount that allows the company to survive for at least 12 or 24 months, which is when the break-even is usually reached. Be conservative in the calculation, since unforeseen events usually arise.
Lean on family
Sometimes, you do not have enough of your own resources and do not want to seek external financing. In these cases, you can request the collaboration of family or friends. They can make a donation, participate in the capital of the company or make a loan with reduced interest.
Whatever the formula adopted, it is important that you treat your family and friends with the same professionalism with which you would treat a professional investor and presents them with a serious business plan that includes a projection of income and expenses, with special emphasis on the risks.