Many people may dream of starting their own business. Some are driven by the satisfaction of being their own boss while, for others, it is the lure of making money from their innovations and ideas. The road to entrepreneurship is varied. There is the very small, weekend business that does not require a large overhead. Those who are looking at larger operations will clearly need to have more capital. For example, a franchise such as Secret Recipe’s will cost about RM420,000 in franchise fees and initial in investments, according to Franchise
’s website. Malaysia
Recommended Financial Moves:
Take a look at your career and finances
Making the move from employee to employer is a risky endeavour. If the business is not successful, you may have to declare bankruptcy or lose much of your invested wealth. Those who want to start a business soon should also take a careful look at their plan to see whether it is financially viable without compromising on their other important goals in life.
Separate your finances
Business that require significant capital may require external sources of funds such as venture-capitalist financing, loans from business associates, private loans and help from family and friends. It is good practice to separate your personal finances from money for the company. This ensures that your personal finances are constantly in order and improves your chances of getting commercial loans, as bankers will be concerned that the funds that they give are used for their intended purpose.
Consider your capabilities
One question to ask is whether you are capable of starting and operating a successful business. The idea of a start-up may seem alluring, but the budding entrepreneur may find it difficult to sustain its commercial viability. A considerable amount of planning needs to be done prior to the launch of a company, in addition to personal and financial dedication. Lack of experience does not necessarily mean that entrepreneurs should not start a business; however, they should wait until they have considerable knowledge in their chosen industry.
(Source: Personal Money)