When starting a business there are many things to take into consideration. Making a business plan is the first and very important step. Then you'll need different sources of financing to begin your business. You also want to know the advantages and disadvantages to the sources of funds. Laws or other legal issues you mite be faced with when starting your business. The last thing is issues that married couples face in the start up and operation of a family business. .
The purpose of a business plan is like any other plans you make in life. Plans are to ensure and think out exactly what you want to do and how it's going to get accomplished. Without a plan it probably be like walking blind. This is an essential first step because if you are planning to get an Small Business Administatration (SBA) loan you are required to have a business plan. Having a business plan will help you in many ways such as arranging agreement with certain partners for certain areas or projects. Also for helping plan and define what steps you must take to accomplish certain projects. Besides will you remember everything you need to do if you do in your head or write it on a piece of paper.
Some of the sources of financing which are recomemded to use when starting a business. Some are Traditional sources which tend to be Banks, savings and loans, commercial finance companies and the SBA. Family members and friends are other finance sources that could be used. Venture Capital is one type of finance source you mite want to use if it's difficult to get a bank loan. Venture Capital focuses on future profits of a business and uses past performance as a primary criteria. Another would be Asset Base Financing where a lender accepts as collateral the assets of a company in exchange for a loan. Other types of sources of finance are long term dept, and line of credit. One that I didn't think would be a source of finance but now see that it could.