One of the primary reasons why businesses fail is insufficient funds. Too many entrepreneurs start a business with passion but have no idea how much working capital is required.

Ask yourself the following questions:

1. Do you have an updated business plan which includes financial projects?
2. Are your financial projections realistic?
3. How much money do you need to start the business?
4. How much money do you need to stay in business for the next 6 months?
5. Do you have any existing savings or assets (e.g. car, property)?
6. Do you have a good credit rating?
7. Are you prepared to give up a share of your business to an outside investor?

There are several financing options for your business. You can use a combination of these options depending on your needs:

• using your personal savings
• borrowing from family and friends
• applying for a bank loan
• applying for a Government grant
• getting investment from business angels or venture capitalists

Learn more about these options in the Funding A Business section of the Start stage.