Personal savings

Equity funding is personal money invested into a business. Many people use their savings, an inheritance, or sell an asset to fund their business start-up.

Starting a business can place a strain on your personal finances. It may be several months or more before your new business is profitable and can provide an income for you and your family. You must have the resources to maintain your household expenses while you establish your business, otherwise the financial success of your business will be at risk.

Well before starting a business it is advisable to get your personal finances in order. Develop a household budget that accounts for your income and your personal expenses. Once your personal finances are in order, you can assess the excess funds you have available to invest in your business.

What's next…

 

Related Information

Business Briefs to view:
Recovery of a Debt
Applying for Finance

Business Guide to view:
Records Management Tips

Workshops

Our free Business Basics workshop will guide you through all the steps involved with establishing and running your own business.
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