Putting your own money into a business
Make all the decisions
Keep all of the profit
Might not have the expertise on what need to be done like the financial expertise
Friend and family
Low or no interest - as they might not ask for money back won’t want the money until established
disadvantage if the business goes bust you might lose your friends
retain profit take enough out for you to live on and the rest back into the business a disadvantage will be you won’t have enough to give for yourself.
An advantage is getting equipment and expanding without interest.
External sources of finance you are likely to go to the bank first of all a loan or over draft start-up costs (you will get a loan) premise stock market research vehicle Running Cost (you will get an over draft)
wages utilities maintenance
Joe is thinking of becoming a window cleaner
His likely customers will be either end of the town lit hi likely start-up costs
(go on internet do research)
Be Your Own Boss
Work in The Fresh Air
Earn upto £1,000 a week
Low Start-Up Costs
Safe - Work from the ground
Flexible Working Hours
A Service in High Demand
initial market research –start up phone bills –running state agents fee – van - premise stock wages – s +r training-s+r electricity-r fax machine-s furniture-s tax for van -r
Loans can help with the start-up cost. It can also be used once the business is underway to help finance a large purchase.
However, there are many types of loans available and it is important to hop around to find the best one.
Factors that we need to look out for.
The APR (annual percentage rate) – this tells you the rate of interest you