All businesses need a bit of extra help from time to time, particularly when it comes to financing. Having extra cash flow or working capital available for projects can assist in bringing in new equipment, hiring new staff or developing your business, so it’s good to know what options are available for you and your business!
To help guarantee your business is successful, you will need to ensure sufficient business funding. The way you choose to fund your business is ultimately one of the most important financial decisions you might have to make. Business funding may depend on various factors including the growth stage of your business and the resources you need to keep the business running.
Regardless of whether you have a well-established business or are looking for startup business funding, Unahina will be able to find a financing solution that best suits your business needs.
There are various funding options available. The types of funding options depend on various factors such as the size of your business, ie. Whether it’s a small enterprise or a large enterprise, the growth rate of your business, the type of trade and industry your business is involved in and various other factors.
Establishing how much funding your business will need.
Before you decide on the type of funding you will use, you need to establish how much funding you will need. Every business has different financial requirements as no two businesses are the same. One financial solution may work for one business but not necessarily yours. Once you know how much start-up capital you will need, you can start looking at the various options available.
In order to establish how much funding your business will need it is important that you understand the various types of expenses, you will encounter.
Understanding the types of expenses:
1. One time expenses vs recurring expenses:
One time expenses include large payments that are made usually in the start-up stage of the business. These expenses are usually on machinery or equipment and are once-off payments. As such, the expenses for the month will be larger than the money coming in and the business will have to make up for that in the following month.
In contrast, recurring expenses are expenses incurred on a regular basis.
2. Essential vs non-essential expenses:
Essential costs are costs that are necessary for the development and growth of your business whereas non-essential expenses are purchases and costs that are not necessary and should only be considered if budget allows.
3. Fixed and variable costs:
Fixed costs include rent which remains the same from month to month. However, variable costs are those that change from month to month.
In order to establish how big the business loan will be it is important that you understand all the various types of costs involved with your business. Here is a list of common expenses for start-up businesses:
- Rental space
- Office furniture
- Office supplies
- Business plan costs
Once you understand these costs, you will be able to establish estimates and will therefore be able to estimate how much funding you will need. It is very important to not underestimate the amount you will need.
Small Business Funding
It may seem daunting to start your own business, what once started out as a business idea or business plan has now turned into a reality. Ultimately, we believe financing should not be the reason a business does not succeed.
In some cases, start-ups are able to launch without official business funding as they have their own financing or have received funding from angel investors.
However, in most cases, a company will reach a point where it will be in need of additional capital to help them grow in size or fulfil large orders. This is where we are able to assist in your business development. Unahina offers business funding that will allow your business to expand, regardless of its current size.
We believe in the development and promotion of South African entrepreneurs, small businesses as well as established businesses which all contribute to job creation and economic growth which in turn leads to national development.
Regardless of the type of business, you are in or the size of your operation we will be able to offer you the financing solution your business requires. The sooner you contact us, the sooner you can start growing your business.