It may well be the case that you need little or no capital to set up as an eBay trader - low start up costs is one of the real attractions of this type of business. However, it might be that you need money to buy items like a good computer and some home-office equipment. Perhaps you have big plans for your eBay business and you need to spend quite a lot on specialist equipment.
Normally any lender, such as a bank, that you approach for funding for your new business will want to see that you have invested some money in the project yourself.
This might include:
- savings
- a lump sum that you expect to receive, for example, a redundancy payment or repayment of pension contributions on leaving employment
- the sale of a non-business asset
Enter in the cash flow the amount of money you will put into the business, in the months when you'll need it or expect to receive it.
Income: Ebay Trader
Expenditure: Ebay Trader
- Payments to creditors
- Cash purchases
- Licences
- Wages
- Drawings
- PAYE
- VAT
- Tax
- Rent
- Rates/Water rates
- Heat and light
- Telecommunications
- Postage, stationery, advertising
- Motor and travel expenses
- Professional fees
- Insurance
- General expenses
- Bank/finance charges/interest
- Leasing payments
- Capital expenditure
- Other payments