Securing the right financing for your new business is crucial, as there is no guarantee that your business will make money for you straight away.
You should aim to have sufficient reserves to last you for several months without an income from your business.
You need to be honest about your start-up capital reserves. If there is not enough money to see you through until your business begins to make money, then you are not ready to start up. Being realistic at this stage is likely to save a lot of pain. If you decide to launch your new business without enough funding behind it, keeping it afloat will prove extremely difficult.
There are many different sources of potential start-up funding, including bank loans, overdrafts and private loans.
For more information, see Choose the right finance when starting up
For expert help, contact an accountant, small business adviser or your bank manager. Find local South Tyneside businesses that can help, see Business directory
Find out if you have got what it takes