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Cooking Business Financing – Obtaining Money To Start The BusinessObtaining cooking business financing is another crucial step. The cooking business financial plan is an important part of the cooking business plan for the obtaining of money to start the business and to run the business as you are working to make the business profitable. The financial plan should therefore contain a portion of the plan dedicated to obtaining startup financing and another portion for the projection of revenues for the continuation of the business. Some business owners may be comfortable with handling the financial planning, but if you are not comfortable working with numbers then a small business consultant who specializes in this area may need to be hired, because making a mistake in this area of the business plan can spell disaster for the business and may even result in the business not even getting off the ground. The financial plan is not simply a written plan but has components that consist of financial work sheets and financial statements such as income statement, balance sheet, and cash flow statement which are in the beginning projections statement for determining startup costs and then as the business becomes an established entity actual revenue statements that are part of financial management for determining the continuing needs and health of the business. Where will initial financing come from? Generally it will come from your own personal finances and that of relatives and friends. After all when you approach banks, the government or venture capitalists for financing, they will want to know how much of your own money you have risked before they risk theirs.
In order to determine how much cooking business financing you have to put into your business you need to do an inventory of your personal assets, which may include savings accounts, real estate equity, vehicles, recreational equipment, collections and retirement accounts, and investments such as stocks and securities. These are assets that can be sold for cash or that can be used as collateral for a loan. When your own cash is not enough then family, friends and associates can be the next source, but one that has to be handled carefully, because a misstep or business failure can put the relationship in jeopardy, and you still have to pay any money borrowed from this source back. The money was loaned to you based on your personal integrity and the fact that these people know you personally, but when it comes to money any relationship can be damaged if not handled appropriately. It’s also best not to borrow from friends, family or associates with ulterior motives or who engage in emotional black mail, the person that you borrow from even within your family or circle of friends and associates should treat the loan as a business situation, and the situation should be handled in a professional manner on both ends. In addition, use perception in knowing who among your friends or family you can really borrow from without jeopardizing their future needs; don’t accept money from anyone who can’t really afford to lend it to you. For some brief information about creating a financial plan, here is a nice short video.
Next: • Hiring employees • Establishing an online presence • Bookkeeping For some great information on starting a cooking business including cooking business financing a great reference is: • Restaurant and More by Entrepreneur Magazine
Cooking Business Legalities
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