do you go about estimating and requesting the amount of eBusiness Money
you will need to start or expand your business? To begin include
different scenarios, such as a best and worst case events, but remember
that later, in the financial section, you must be able to back up these
requests and scenarios with the corresponding financial statements.
Your current and future
ebusiness Money requirement, over the next five
How you will use the funds
And any long-range financial
strategies that you are planning that would have any type of
impact on your request.
When you outline your current
and future finance requirements, be sure to include The amount you want
now and the amount you need in the future,
The time period that each
request will cover,
The type of finance you would
like to have (i.e., equity, debt), and the terms that you would like to
How you will use your funds is
very important to any creditor.
Is the financing request for
capital expenditures? Working capital? Debt retirement? Acquisitions?
Whatever it is, be sure to list it in this section.
Include any strategic information
related to your business that may have an impact on your ebusiness
Money situation in the future, such as: going public with your company,
having a leveraged buyout, being acquired by another company, the
method with which you will service your debt, or whether or not you
plan to sell your business in the future. Each of these are extremely
important to a future creditor, since they will directly impact your
ability to repay your loan.
These should be
developed by using a profit and loss spreadsheet after you have analyzed the market and set a clear objective
so you can efficiently allocate the resources you have available.
eBusiness's Financial information
If you run an established
ebusiness, or business you will be requested to supply
historical data related to your company's performance. Most creditors
request data for the previous three to five years, depending on the
length of time you have been in business. The historical
financial data you would want to include would be your company's income
statements, balance sheets, and cash flow statements for each year you
have been in business (usually for up to 3 to 5 years). Often creditors
are also interested in any collateral that you may have that could be
used to guarantee your ebusiness Money, regardless of the stage of your
ebusiness, or business.
Any ebusiness, or
business whether start up or growing, will be required to supply future
financial requirements and income. Most of the time, creditors will
want to see what you expect your ebusiness, or business to be able to
do within the next five years. Each year's documents should include
forecast income statements, balance sheets, cash flow statements, and
capital expenditure budgets. For the first year, you should supply
monthly or quarterly projections. After that, you can stretch it to
quarterly and/or yearly projections for years two through to five.
Be sure to make your
projections match your ebusiness. Money requests; creditors will be on
the lookout for inconsistencies. It's much better if you catch mistakes
before they happen. If you have made assumptions in your projections,
be sure to summarize everything.
Include a brief breakdown of your
financial information. Include a ratio and trend analysis
for all of your financial statements. You may want to add
figures or graphs of your trend analysis (especially if they are
Starting abusiness is not as difficult as it first seems.
For an example of how you can do it with very little capital, you owe it to yourself to watch the video below.
For free advice or information about anything on this page you can
reach by using the form on the contact us page.
Women in Business,
With more women wanting to build either a homebased business, or run one from premises. We are devoting a page with advice and guidance, just for women who want to start and become business owners.