Financial Planning for your Business

Services-based businesses tend to require little capital investment, while product-based services require largest investment, mainly due to investment in infrastructure, such as manufacturing, storage, logistics, etc.

However, electronic products will not require much physical infrastructure and are similar to services-based businesses.

Knowing your business' capital requirements help you make better use of your resources.

You will also find it useful to calculate your business' monthly expenditure. This will help you plan a budget.

The budget should include components such as:

• salary and labour costs
• office rental
• equipment running costs
• research and development costs
• marketing costs
• manufacturing, storage, logistics costs for physical products

Prior to start a business, it would be good to ensure that you have sufficient funds to cover your business operations for at least a year.

Fundraising, would be an important component of your business operations.

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