How much should you ask for

You will need to cost each aspect of your start up plan or growth strategy. For acquisitions it helps if you have identified potential targets and valued the business. To launch a product or service you will need a marketing plan, which includes:

  • who you will target, assumptions about how
  • many sales or customers you hope to
  • acquire, the medium you intend to use and
  • the cost of the campaign

Opening or purchasing new premises will require some assessment of the cost to buy or rent in the area you plan to locate, as well as any modifications you will make. If it is working capital you are after, you will need to assess market rate salaries if hiring staff; the cost of equipment required; or how much suppliers would charge for additional stock.

Ultimately, you may need to temper your ambition. You may have to recalculate if the financier offers you a smaller amount, so it is worth having alternative plans to ensure you don’t lose time trying to raise finance while your existing resources dwindle.