It may be that you don't need to borrow any money to start up your paving business. However, many new businesses do need to raise money to cover:
- the initial start up costs such as buying a vehicle, power and hand tools and smaller items such as business stationery
- working capital
There will almost certainly be a period during the first few weeks or months of trading when your driveway business is establishing a name for itself and your sales are still building up to their full potential. During this period you may still have to cover expenses such as:
- wages if you employ any staff, and your own living expenses
- purchases of materials, consumables and sundries
- running costs of your business vehicle
Because your income from paving and other services 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 ask 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 financial help in the form of a grant, possibly to cover the cost of any training needed.
If you're registered with CITB, the skills body for the construction industry, then you may be able to get a grant to help with the cost of training your employees and developing your business. Grants are available for:
- training apprentices
- qualifying young workers
- qualifying your existing workforce
- getting skills registration cards for your plant operators
- training technical, management and professional staff
- developing your business
You can find out more about the CITB Grant on the CITB website.
You can get information on grant aid and other 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 for things like helping new businesses in economically run-down areas, or for helping unemployed people to start up their own business. You can also use the tool on the Gov.uk website to help you identify any suitable sources of local and regional funding.