Why a person would need finance to start up a business

There are many reasons why a person would need finance to start up a business. For examples, they may need finance to:

• purchase items needed to run the business, e.g. premises, vehicles, equipment, fixtures and fitting, and products

• advertise the business and the services/products available

A business is funded by different sources of finance to start it up and keep it going. Successful entrepreneurs/business owners usually use a combination of available sources of finance to fund their business venture. Some of the sources of finance include:

• personal savings

• investors (people who put money into the business for a share of the profits)

• sale of an asset (like a house or a car)

• bank loan

• overdraft

• friends/family

Also, designated agencies that specialise in offering advice and assistance to entrepreneurs/business owners may help, such as:

• Northern Ireland Direct Government Services - www.nidirect.gov.uk

• Department for the Economy - www.economy-ni.gov.uk

• Invest NI - www.investni.com

• NI Business Info - www.nibusinessinfo.co.uk

• The Prince's Trust - www.princes-trust.org.uk

• Enterprise Northern Ireland - www.enterpriseni.com