It may be that you do not need to borrow any money to start up your business. However, many new businesses need to raise money to cover:
- the initial start up costs such as land, machinery, equipment, seeds, agro-chemicals
- working capital
Unless you're taking over an existing turf farm there will almost certainly be a period during which you will be growing your first turfgrass crops and your income will be low.
During this period you will still have to cover expenses such as mortgage and machinery purchase costs, wages (and your own living expenses), water costs and so on.
Because your income from the business may not be enough to cover these outgoings during the early days, you will probably need to set aside some cash, or 'working capital', to tide you over.
If you need to approach the bank for a loan to cover your start up costs and working capital, leave this entry in the cash flow empty until you have completed the rest. This will give you an idea of the shortfall between income and expenditure.
If your figures show that you're likely to need to borrow money, it's wise to check at an early stage in your planning that funds are available on terms that are acceptable to you.
Grants and other funding
You may be able to get some help in the form of a grant, for example to cover the cost of training for a small business management qualification. Depending on the nature of your business, you might be eligible for a farm diversification grant. Information on grants for the agriculture sector is available from:
- the Department for Environment, Food and Rural Affairs (DEFRA) in England
- the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland
- the Scottish Government Rural Affairs and Environment Department in Scotland
- the Welsh Government
The grants vary around the country and depend to a certain extent on individual circumstances as well as location.
You can get information on other grant aid and alternative types of funding available throughout the UK from the business finance and support finder tool on the Gov.uk website.
Grant aid varies considerably around the UK and some assistance may be available in your area to help you start up your business.
It is also worth contacting the business support unit in your local council if it has one. Sometimes local grants are available to help new businesses in economically run-down areas. You can also use the tool on the Gov.uk website to help you identify any suitable sources of local and regional funding.