Dont
jump to investment in business without a solid business financial plan prepared
under guidance of professionals accountants.
Plan
out investment in following
Machinery & Equipment / Setup
Cost Consider option of used setup
Land & Building - Rented
Building
Inventory
Monthly operating Expenses (Salary,
Rent, Utilities)
Customer Receivables management and
credit period
Source of Funding for investment.
There may be mix of bank debt and owner funds. For small business bank debit
should not be more than 30% of total investment
Identify
Breakeven sales (amount and no. of units) based on monthly fixed costs (Salary,
Rent, Utilities)
Plan
and monitor your cash flows for 1st year
Apply for short term loan banking
facility there might be cash flow deficit due to recurring startup losses or
other backup sources of funds
Check
Payback Period of investment under different market conditions