Seeking business finance
There are a number of options you can consider when financing your new business. These may include:
- Personal savings
- Loan from a financial institution
- Loans from family and friends
- Credit or funding
- Venture Capital
Before you seek business finance, it is important to consider these options as well as why you need and how you will use the funding. This could include provisions for cash flow, property, vehicles and equipment. To help you establish your requirements, you should prepare a business plan. You will often be required to produce this business plan when seeking funding from a financial institution or investor.
Managing business finance
From balancing the books, budgeting and cash flow management, there is a lot to do when it comes to managing your business finances.
It is important to understand what is involved with managing your business finances correctly. This could include:
- Setting up thorough and accurate systems such as a records management and bookkeeping system (for information on choosing a record-keeping system see the Australian Taxation Office’s (ATO) Choosing a record-keeping system to help with this).
- Preparing financial reports such as cash flow statements, profit and loss statements and balance sheets.
- Analysing your accounts.
To find out more about managing business funding visit business.gov.au’s Business finance page .