It may be that you don't need to borrow any money to start up your architectural salvage business. However, many new businesses do need to raise money to cover:
- the initial start up costs such as buying stock, a business vehicle, equipment and smaller items like business stationery
- working capital
There will almost certainly be a period during the first few weeks or months of trading when your salvage 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
- running costs of a vehicle
- rent, rates and utilities if you have any premises
- other day-to-day business costs
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 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've completed the rest. This will give you an idea of the shortfall between your income and your 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. This might include health and safety training for you and any employees you have. Business located in rural areas may be eligible for special grant funding in certain regions.
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 shop front renewal, or 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.