Reference no: EM132497492

Question 1: Create a funding plan with two parts. Part I should be your ROI or budget. What are you offering? How much will it earn you in year one, year two, and year three? What are your expenses? Separate fixed expenses from one-time expenses. Fixed expenses are like rent, utility bills, wages, and the like. One-time expenses would be business registration, equipment purchases, vehicle, and so on.

Question 2: In Part II, explain how you plan to fund your business. Typically traditional investors like to see it spread out with you personally taking a significant chunk of the risk. Then they want to see your family and friends throw in, and finally they may be willing to chip in. It's okay to be creative here. Be sure you have enough capital to go the year even if your product or service don't take off right away. In some cases you may need to plan even farther out. In the book example above, it's not uncommon for sales to be paid six months after they are made. That means you have to hold on after paying for the book to be printed and shipped for six months before you start to see any money coming back. Plan for what works for your product and service.