Issue link: https://docs.hic.us/i/403552
C C h h a a p p t t e e r r 5 5 – – F F i i n n a a n n c c i i n n g g F F o o r r Y Y o o u u r r B B u u s s i i n n e e s s s s Once you have a pretty good picture of the details and costs of getting your new venture off of the ground, it's time to begin looking at financing options. Look into several different sources and see how they compare. But before you approach any financial institution, be sure you fully understand your needs. If you have developed a proper business plan, then you should be well aware of the costs involved in starting and operating your business enterprise. But not all of these costs can be financed. This chapter addresses possible financial sources and what they typically will finance. Terms are not discussed in any detail, since each source has its own requirements. Before discussing sources of potential financing, it's important to identify and categorize your needs. Startup Cost Categories There are four basic categories of startup costs associated with a new embroidery business as follows: Embroidery Specific Equipment For our purposes, this category is best described as all of the embroidery equipment, including machinery, design software, embroidery supplies, and associated equipment and accessories (directly related to embroidery). Think of it as the necessary equipment that you are purchasing from an embroidery equipment distributor. Non-Embroidery Equipment And Supplies This category includes items such as office supplies, office furnishings, business software, computers, telephones, answering machines, fax machines, etc. Intangibles Expenses such as deposits, fees, licenses, labor, etc. all have a real value, but they are not physical in nature. Thus, they have no resale value, which is something that financial institutions look at closely. www.hsi.us care@hsi.us 61