THE KISS PRINCIPLE IN MICROBUSINESS

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CHAPTER 12

FINANCE: HOW WILL I PAY FOR ALL THIS?

In chapter 11, I have drawn up a checklist of the essential needs of my new business and have made decisions on such things as whether to buy or rent and get new or used equipment or machinery.

This list of decisions will affect the initial start-up costs. Putting a price on the various decisions I have made, so far, will help me make further decisions, when I compare the total costs with the money I have available.

Then, I will be faced with the questions: where will the money come from? Can I get more if I need it? From what additional sources. If not, what items in my list can I do without and still operate efficiently?

Depending on my previous decisions, I am faced with three alternatives that support my choices:

1.    Start from zero.

2.    Buy an existing business.

3.    Buy a franchise.

Each one of these choices implies different costs, and, according to my earlier decisions, I will look at the one alternative that confirms my choice. In each case, I will draw up a work sheet and put my numbers down, add them up and compare with the capital I have available and that I know I can raise through partners or through borrowing. These costs will be split between starting Capital Costs and the starting costs relating to Operations. The lists are not complete, by any means, but they are offered as guidelines. It is up to me to complete them according to my needs, helped by my knowledge of this particular business.

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