Are you already running a business and further planning to start another one? Are you stuck with business finance needs because of a lack of time? If you have answered yes to both the questions then this is probably a good time to read more into this article. While it can be very time consuming to run a business and also start planning for a new one, the fact is that if you want to start another business simultaneously, you will need a solid plan. Let us take you on a step-by-step process of planning another business while still holding the reigns to the original business with a firm hand.

You need a business plan: Your imagination is not enough; you need a proper well written plan for your business. This should give you a realistic approach to your new venture along with financial expectations. You may take help from a professional company that writes business plans for a better view.

Invest in your own business: Be your own investor in part. This will not only give you a strong hold of the new company but you will also be able to win the trust of external investors whom you want to believe in your project. You may begin by investing approximately 10 percent from your own pocket and manage to convince another 30 or 40 percent from private investors. You must keep in mind that the private business finance that you receive would also mean that the investor would want to own about 30 or40 percent equity of your new venture after evaluating the risks in the business. In addition to the financing, you will also be receiving their expert opinions in how to make your business a running success since their money is also at stake.

Look for the remaining business finances: Once steps one and two are in place you should be in a good position to secure the remaining finances for your new venture. At this stage you may want to hire help from a professional Loan Broker who can help you find the remaining financial backing. He should be able to present in front of you a few options to choose from and you must choose one that fits the requirements of your business. You may want to have a mix of secured as well as unsecured debts that may be designed to fit the financial requirements of your company. This will provide leverage to your new venture from the very beginning.

The strongest financial backing that you can have in your business will be the money you put in yourself. In addition, you may also request your investors for an extension in the repayment terms so that you can utilize the extra money to keep the business afloat. Financial structuring is very crucial to any business and it also helps in intelligent contribution to a business venture. It is very important that you understand the relation between finances, risk and the value of your business to make it a successful one.

Author’s bio: Kevin has been writing finance and business finance related articles for the last 5 years. He has a college degree in business administration and writes articles as a passion when he is not drawing up flowcharts or developing business plans for companies. Look out for more of her articles in the web.

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