Start-Up Capital II

business the chief strategist's way!


This week we’d focus on the initial start-up you require; where and how to source cash for your initial capital.

To know the initial start-up capital that you require you have to consider your initial start-up costs ( we talked about that a couple of weeks ago); estimate your expected operating losses in year one, two and three.
Now that you have these figures, total the four figures together ( initial start-up costs + expected operating losses year 1 + expected operating losses year 2 + expected operating losses year 3 + expected operating losses) to get total investment you will need to start your business.
Total investment required = Expected operating losses year 1 +  Expected operating losses year 2 + … Up to the nos of years you expect losses.

Right! You might be thinking: how would I expect losses when I’m in business for profitability?
Very good line of thought! I agree perfectly with you but unfortunately, very few businesses reach profitability in its first year. Its takes three to five years depending on the gestation period and dynamics of the business.
So understanding and considering this in your plan saves you from rude shocks.

Now that you know the total investment you need to start your business. The next step is to figure out where the cash/ fund will come from to start and grow the business.
Typically they will come from: Personal Savings; Friends and family; Loans; investors.

How you’d structure these mix is another different ball game entirely.

Checking in at the Ecclesiastes 10:15 Coffee Lounge for a cup of Cappuccino with THE CHIEF STRATEGIST this morning, the vending machine displayed:

“The labor of fools wearies every one of them, because [he is so ignorant of the ordinary matters that] he does not even know how to get to town”

As a complimentary. I want to hand you an insightful and extremely useful resource that can help you in funding your business without complexities.
If you would like to have the resource, send an
Email with Title:  Funding without Complexities indicating your
*First Name* *Last Name*  *Type of Business* *City* *Country* *E-mail address* to and resource link will be sent to you.

I hope that you find it resourceful as I did and more importantly that you leverage this information.

I’d see you next week BHG!

For a Moment With Ope’ tune in to  Telegram Channel: @MWO
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People | Insurance | Sustainable Value

Rewarding Q2, 2016 it is still.

Have a Redefining Week. Good morning!


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