With small business booming in Australia and thousands of entrepreneurs going out on their own and setting up new ventures, the need for finance and insurance is growing rapidly.
A lot of these great ideas will typically have significant set up costs associated with them that require either angel investors, or loans from financial institutions in order to turn them into reality.
One of the most commonly asked questions we get here is how and where can people get financed, and how best to protect the business once it’s up and running.
How to Protect Your New Small Business?
Most of these start up companies have a lot of risk involved, and high risk typically means more business insurance and an excellent risk management plan being required. A lot of these businesses are heading online to get insurance quotes from companies like ACAY Insurance who provide a place to source multiple quotes from brokers and insurers alike which gives these businesses a better chance of surviving should anything go wrong.
How to Fund These Start Up Ventures
Getting the finance to start up a new company can be a challenge. A lot of banks and lenders will require you show them your business plan, as well as financial estimates to show that your idea is worth investing in.
The bank will look at all your personal collateral to see whether they can recoup losses should you default on the business loan. This could include your house, shares, investment properties and family assets.
This is why it pays to do your due diligence before starting a business venture. I can be hard to financed approved from a bank – and with good reason – they are in the business of making good investments that yield a positive return on investment.
So make sure that if you think of starting up your own company, that you make sure it is finanically viable and that you have adequate insurance cover should anything unforseen happen once you’re up and running. This site has a bit more infomration about things to consider: http://www.business.gov.au/BUSINESSTOPICS/INSURANCE/Pages/default.aspx
What are your experiences? Tell us how your financial application went if you have tried to get a business loan before!