Making Financing, Ownership, and Organizational Decisions
In This Chapter
Figuring out how much money you need to launch your business
Deciding how and where to finance your business
Considering your ownership options
Selecting the legal entity that works best for you
After you discover where you want to go with your small business and commit to the journey, you need to begin making some important decisions about how you’re going to reach your goals. In this chapter, we help you estimate how much cash you need to get started, where you can expect to obtain that money, whether you want to set out on your own or with others, and what kind of business entity you need to get you where you want to go.
Determining Your Start-Up Cash Needs
Before you determine where you’re going to get your start-up funds, you need to understand that your business’s initial cash requirements include not only one-time start-up costs but also working capital and a reserve. Here’s what these requirements mean:
One-time start-up costs: Start-up costs include such one-time expenses as legal fees, ...