Business Finance for a Computer Store

Do you want to be a self employed? Have you dreamed of owning your own Computer Store? But more importantly have you thought about how you would fund it? There are many options open to you when it comes to business finance such as:

• Bank loans
• Credit cards
• Business angels
• Venture capitalists
• Family and friends
• Personal savings
• Home equity

The first place people tend to go to for business finance is their bank for a bank loan or overdraft. The one advantage to using a bank loan is that the bank will have no say in the way that you run your business; they will purely be involved to lend you the money you need to get your business off the ground. However most banks are not keen on lending money to new businesses and you will also face high interest rates when you are re-paying your loan.

In your planning stages of your new business; before you even consider approaching anyone for finance, including your loved ones, you need to produce a business plan. This business plan will outline your stages of business. It will inform people of your strategies, marketing plans, financial forecast and the objectives of your business.

A business plan is a valuable tool. Not only will it give your business a well needed sense of direction; it will also show others you have really thought about your objectives and developed a well thought out strategy. It’s also wise to keep in mind that a business plan is on-going; you should use your business plan to continuously monitor and evaluate the way in which your company is being run.

Opening a new Computer Store means that you will be up against a lot of big name companies so in order for your business to be a success you have to consider ways of enticing customers to spend money in your store. Whether this means discount prices, special offers or a free gift it pays to make people feel special; remember the first year of your new business is the most crucial.

Visiting existing stores, gaining work experience and brushing up on your software knowledge and computer terminology is also advised as this will help you gain a clearer perspective of how your new business should be run, the type and quantity of stock you will need as well as the accountancy and finance side of your business.

Business experience is crucial as is business finance. You will need to cover the start-up costs of your new business in order for it to start bringing in money itself. There is a well known business saying that goes; “sales are vanity, profit is sanity and cash is reality.” The basic meaning behind this is sales are meaningless without a constant cash flow, emphasising the need for business finance.

For most new businesses the best form of business finance is a business angel. A business angel is an entrepreneur who has built highly successful businesses. A business angel is an investor, they invest their money into your business for a portion of your shares, which is their one disadvantage as they will want a say in how your business is run. However a business angel is a valuable tool to a new business venture and the advantages of a business angel far outweigh the one disadvantage as a business angel will not only invest their time and money into your new business they will also bring you all their experience and contacts within the industry.

For more information about business plans and business angels, get in touch with Angel-Start-ups today.