One of the main areas that can cause the new "start up" or the expanding business the most worry is finance. Finance for survival, for plant and equipment, software, office set up, franchise costs, working cash flows, wages and salary, licenses, agreements, legal work, accountancy work, tax work, etc etc. Its endless!
Every business needs capital (or simply cash) to start or expand. Just because your new sales will lag behind your set up/expansion costs and expenses. This transition between the money going out and the start of the money coming in, is the single biggest reason for failure. When the money runs out, so do your suppliers, staff and reputation.
So you have to plan, then plan then plan some more. Because most of us are convinced that our idea is the best, and no other person can do it so well. But you need to bounce this view off someone else, preferably someone who will give a valued opinioin based on knowledge and experience of your market.
Too many of the advisors out there have a "product" to sell, even the banks. So they may even encourage you-as it's only your money that will be lost. So my tip, find the bank who turns you down. Then ask why. You have to be able to accept a challenge to your ideas and ambition.
Find out all the reasons from the guys who turn you down. Then discuss those reasons with someone like me, someone older, and maybe wiser, and we can then start off the real plan! then we may have a much better idea of how to make things work and not risk your money.
But a word of caution, you will still get advisers who feel that your idea will work, they want to be your friend (for the moment). But you really need for people to turn you down to really learn what is needed. It's a lot harder to be rejected and a lot more pleasing to the ego to get accepted, but just remember its your money, home and family that is at stake.
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