How to Finance a Small Scale Business
- 1). Write a business plan. The plan should include all current assets of the business (for example, inventory) and expected costs of the business (cost of rent and salaries, among other items ). The plan should also detail the purpose of the business, its product or service and, in quantitative terms, compare the costs of the business next to the expected revenues (Reference 1).
- 2). Decide on the exact amount of financing you seek and how much you can personally contribute to the business. For example, if the cost of your inventory and paid salaries will initially be $10,000 per month, then consider how much of your own savings you are willing to contribute to the start-up before you begin seeking loans.
- 3). Get the capital you need to finance the business. Contact your local department of commerce for assistance and tips on contacting investors. If you want to take out a loan, then visit a bank with your business plan and apply for one. Alternatively, if you own a home, you may want to consider refinancing your house and using that money for your business. (References 2)
