7. Financial Contingency

The first financial aspect that I will be discussing that will affect the start-up of my business venture is budget. This is important for my business because I will need to know if my business is able to produce enough income to guarantee that I am in credit. Without this method I will not know how well my business is performing and if my business is financially stable or it is on the verge of bankruptcy.

The second financial aspect that I will be discussing is cost of premises. This affects the opening of my business due to the fact that I will have to check if the premises are near to my target market and is their competition nearby. If the premises is close to target customers and there are fairly no competition around then my business will be able to engender income because it is sited in an area where there is no competition.

The third financial aspect that I will be discussing is equipment and suppliers. These are important because I will need to know what equipment is needed for my business and from which suppliers I am able to purchase them from. By choosing a supplier who offers the equipment required on low and affordable prices then costs will be low and this will be beneficial for my first cash flow because costs will be at a minimum.

Another aspect that I will discuss which affects the opening of my business is loans and borrowing. This resource of income is given to businesses on a reciprocal contract that it will be repaid with interest and in a long period of time. This helps the business because it will be able to fund for the businesses costs and also to promote on the facilities that the business requires to improve on.

One last financial aspect that I will discuss which affects the opening of my business is record keeping. This is vital because by keeping financial records of my business then I will be able to see if my business is performing well. And HM Revenue and Customs (a leading tax company) must be shown taxes paid for profits which are earned by my business administration.