Starting a business. Need advice.

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SpiralS

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I am looking at starting a business as soon as the new year hits. It will be in the engineering sector and the capital needed for the machine is quite high. Estimated price with Euro landed its about R3.5mil landed. I have an investor/customer who is willing to put down R1.5mil and supply steady flow of work.

Allot still needs to happen. Business plan needs to be drawn up etc. Apart from the sound and solid business plan who will be the right institution to approach to get the rest of the funding or is this way too much too start of with?

Any advice or more questions will be appreciated.
 
SpiralS said:
I am looking at starting a business as soon as the new year hits. It will be in the engineering sector and the capital needed for the machine is quite high. Estimated price with Euro landed its about R3.5mil landed. I have an investor/customer who is willing to put down R1.5mil and supply steady flow of work.

Allot still needs to happen. Business plan needs to be drawn up etc. Apart from the sound and solid business plan who will be the right institution to approach to get the rest of the funding or is this way too much too start of with?

Any advice or more questions will be appreciated.
Click to expand...

Get a company that drafts business plans and go chat to them. They will draft it for you and submit it to banks for finance.
 
I honestly wouldn't know, 4 years back I tried getting a measly 400k from the bank to start my company, none of which was willing to assist, regardless of an superb business plan.

Needless to say, I ended up funding the venture myself by cashing in some investments, haven't looked back since.

All the best in your endeavors, hope you get the funding required.
 
You won't receive finance from any reputable institution with a single client who also happens to be putting up some of the capital. It simply won't pass the risk officer's assessment.

Best bet is to secure new contracts or documented "firm intent to do business" from a wider client-base and then approach your bank with these and a well researched and realistic set of forecasted financials and business plan. Depending on the sector and the make-up of your shareholding you may be able to secure some funding from places like the DTI or DSBD. Your best bet if you want to consider this route is to approach them with a first draft of the business plan and forecasted financials. Don't go in empty-handed, and ensure that your business plan has a specific focus on corporate social responsibility, BBBEE, and sector-based development from an employee perspective...
 
Hi all thanks for the replies. The next step will be to get as many customers on board with the firm intend to do business and draft up a business plan. Look its a huge chunk of money thats for sure but in my experience and watching the market there is a huge gap for this business to make some serious money. Its not a niece market. There is just a big gap between the small guys and the big companies which let me to start asking questions to potential clients and the the feedback has been more than positive.

Looks like the government will be my best bet in securing the large amount of money.

Now if I only had some Naspers shares to cash in...
 
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