• Many people turn to banks and other financial institution for initial capital- please start with self- financing.
• Always ask for more and better terms from your suppliers.
• Business is about other people’s money so protect your reputation/goodwill
• Business finance falls into two categories;
• Equity finance
• Loan finance

Equity finance is the money the owner(s) invests in the business. It is an investment in the business-once made the business owns’ it.

• The only way to get the money back is through profits or selling a portion of the business to another to join.

Loan Finance

• This is the money borrowed on behalf of the business. It could be repayable as a lump sum or over a period of time
• When negotiating loan finance for a new business, you should request repayment holiday on the principal and possibly the interest
• In the small business environment, banks remain the main source of loan capital
• You can also invite others to join you as a share holder- this will enhance the capital base of the business and spread risk.

If you are not yet ready for leap of faith, stay in employment and work hard to earn your salary. Operate your own business in your spare time until you are ready to take it on as full time.