Project validation Market research Business plan Plan the start-up Financing Start-up

Step 5

Financing

Identifying your financing needs and sources is a critical step on your road to success.


Determine your costs
Begin by preparing a detailed summary of the costs of your business project.
  • Working capital
  • Inventory
  • Computer equipment
  • Tools
  • Vehicles 
Identify your sources of financing

Before deciding on the financing package for your business, it is recommended you learn about all types of financing open to you in order to select the one best suited to your plans. Financing options include loans, shareholder equity and government programs.

Once you have established your needs, you should determine which source of financing can best address each one. This is known as a “financing package” and is often presented as a chart. 

Capital outlay
Most lenders will require you to make a capital outlay of 20% to 25% of the cost of the project.

Where can your capital outlay come from?
  • Personal savings
  • Family or friends
  • Business partners
  • Private investors
  • Crowdfunding

Learn more about sources of financing