When starting up a business you will need capital. Capital can come from friends family, business associates, banking and credit card companies. It is to your benefit to establish relationships with your personal banking institution and other local banks as well as other financial institutions such as credit card companies that seek small business entrepreneurship like American Express. Meet with the people you are going to establish financing from and get as much information about your current status and future financing as the business grows. This can and should include Business credit cards and lines of credit. Get all the information available and do not be afraid to ask.
OK, you now have funds in your hands. The next challenge is to resist the temptation to spend it all. Establish a budget; spend only what is absolutely necessary and invest all other money. Invest by putting your reserves in short-term vehicles such as a Money Market account and/or Cud's. It is always advisable to put these funds with the institutions that you are doing business with. Remember you are building relationships and networking.
Hold on, you have money coming in and you may need assistance by recruiting help. An option you may consider when getting help with launching and building your business is paying your personnel based on performance as opposed to a salary. Establishing a percentage formula and/or bonus perk criteria based on overall production/sales can save you money and give incentive at the same time.
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