So, you are planning to calculate your financial capital? Congratulations! So, you are ultimately planning to do a business? Welcome to the world of business. After you are sure you have understood your business, it’s time to chalk out your financial capital. You can do it yourself or with the assistance of a professional.
The biggest things in your business are the financial capital and the funding – the capital and the capitalist. Money and from where it would come to your way? These two are the most serious for your business. Often if your business is very small, you invest from your bank account; but if it is bigger than that? Getting financial capital and the funding for your startup company is no child’s play. Neither is it an impossible task. The first step is to calculate financial capital.
So, calculate your financial capital before you approach any organization for funding your business. Do not get disappointed to hear ‘no’ and ‘sorry’. Don’t rejoice to hear any sum of amount. Keep trying until you hear ‘sounds good’. It will be tougher if your financial capital is not convincing. Here are the organizations and people you can approach for funding your business:
Banks can supply you funding aligned with security, if they find your Financial capital convincing. Banks will make query about your financial capital and the kind of funding (or loan) you want to run this business (but don’t feel very timid if you have no moderate financial capital). They will also want to find out – your reliability, your permanent address, why you wish for that kind of funding or bank-loan and about your scheme to return it. Try to convince them about your secured financial capital and the kind of funding you think necessary. Show them that you have excellent plans for returning the funding provided by the bank.
Another alternative is to find a venture capitalist. Though they don’t provide neutral funding, but you certainly find funding if they are asked for partnership business. They are entrepreneurs whose trade is to give funding and get extra financial capitals or profits out of those funding.
Do you think you can go about it? Great! Get going. That’s the way the world goes. Remember, don’t be too rigid with your chalked out financial capital. As you actually proceed in business, you have to accommodate many funding capital sources to get fund. The calculation of financial capitals is there to help you, not to prevent you.
Calculating financial capital specifically helps in price setting for your product. You must consider your competitors’ prices, understand what price the buyers do not mind forking out, whether the price is profitable for everyone in the chain, which involves the manufacturer (if you are the manufacturer), wholesaler, and retailer. So, understand the minute details of your financial capital as required. And best of luck. Your next step is to get funding. So, look positive and be ready to dig up the bucks!