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Starting a New Business

Posted on: 15th Jan 2015

Most people are far too optimistic about the prospects for a new business abroad and over?estimate income levels (it often takes years to make a profit) and under-estimate costs. Be realistic or even pessimistic when estimating your income and overestimate the costs and underestimate the revenue (then reduce it by 50 per cent!). While hoping for the best, you should plan for the worst and have sufficient funds to last until you're established (under?funding is the major cause of business failures). New projects are rarely, if ever, completed within budget and you need to ensure that you have sufficient working capital and can survive until a business takes off.

            Banks are usually extremely wary of lending to new businesses, particularly businesses run by foreigners (would you trust a foreigner?), and it's difficult for foreigners to obtain finance abroad without local assets. If you wish to borrow money to buy property or for a business venture abroad, you should carefully consider where and in what currency to raise finance.

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