Finances

This includes start-up costs (the costs the business has to pay to get started, such as equipment or one-off training) and running costs (the ongoing costs the business has to pay, such as wages, fuel or materials).

What are the likely start-up and running costs?

• What building, equipment or tools will you need to buy?
• Will you need to pay for any labour, training or advice?
• Will you need to buy stock, seed, food, petrol etc.?
• Will any of these costs need to be repeated soon? Are they regular running costs?

How can you find enough money to start?

• Will you be able to meet all or part of the start-up costs?
• Do you have any savings, wages or income you can use?
• Who has a say in deciding what to invest in?
• How does your family, tribe or village raise money? Can you use any of these ways?
• Can you get a loan from friends, relatives or bank? Could you pay them back, and what is the interest?
• Grants are rare but are there any you can ask for? If so, what proportion of your costs could you yourself cover?
• If you receive a grant, how will you fund your business when it runs out?
• What are the reporting requirements of the grant?

What are the possible ways to ensure a financially sustainable business?

• Do the running costs look too high compared with likely income?
• Are you able to reduce start-up or running costs by other means?
• How will you make sure that money received is used on repayments and running costs before family or other social obligations?
• Will the profit be enough to compensate for the time spent on the venture?
• Will there be other benefits (maybe social or community benefits) of the business and how can you take this into account?
• Will the business provide income or profits soon enough?
• How will the profits be shared and used?
• Are there government charges, fees or taxes that you will need to pay?