Will You Need to Borrow Money?

Will You Need to Borrow Money?
The first step is to ask yourself some questions that will help you to make the right decision –
questions that will help you to realistically understand your financial needs and keep you from
making costly errors that may ultimately bankrupt a potentially viable business.
To determine whether or not you will need outside financing, some of the questions you might ask
yourself are:
1. Have I written a business plan so that I can make financial decisions
based on achieving the desired goals for my business? If you haven't written
one, do so.
2. Would I be willing to risk my own money on my venture? What are
the risks? What are my own sources of available capital? If you are not willing
to take a risk, don't expect someone else to.
3. Do I really need additional financing or do I just need to manage my
present cash flow more effectively?
4. What do I need the money for? If I borrow, can I realistically project
increased revenues? If so, when will those increased revenues justify the debt?