It’s time to plan! in times of economic downturn and high unemployment, many people see opportunities to invest in their own business.
Avant Consulting – a Singapore business financing advisor company – gives tips for those who want to undertake how to seek financing from banks, or investment from third parties. It is essential to plan the company’s future, so as not to enter the statistics and close the doors.
The following are expert tips for those who want to undertake, but do not have enough capital:
Plan or Close the Doors!
To draw up a plan with the prospects and goals that the market can offer, estimating costs and profits, and to analyze the opportunities that the company’s operating area has to present, contribute to the good development of the company.
Studying the area in which the company will work, knowing the strengths and risks that the area offers are part of good planning.
Bank Financing, Stay tuned!
There are currently several lines of credit offered by banks to new entrepreneurs, either in public or private banks. Both have advantages and disadvantages, but the entrepreneur must analyze which is the best for the company.
The bureaucratic level required by private banks and the level of monitoring are lower, as well as the payment term. However, interest rates are higher.
Seeking investment through an angel investor is one of the fastest and cheapest alternatives to obtain credit. It is a positive solution, as the investor will not only inject money into the company, but will also contribute with knowledge of the market.
The angel investor will have a minority share in the company’s profits and will not act in an executive position in the company, but will support the entrepreneur as an advisor and / or mentor. The entrepreneur must be aware that there will be a charge and profit sharing by the angel investor.