Be prepared before starting a business, expert advises

Anyone looking to start a business needs to ensure they are prepared in order to maximise their chances of getting finance.

This is according to Cathryn Hayes, head of franchising at HSBC, who said that contrary to popular belief, banks are still willing to offer loans and funding to start-ups.

However, she warned it is important to know everything about the financial side of things before making an appointment with the bank manager.

For instance, she said it’s vital to work out exactly how much money you will need, as well as factoring in added costs like premises and professional charges.

Then, Ms Hayes suggested drawing up a list of personal expenditures, as this will show how much you will be able to “take out of the business in order to live”.

Finally, a solid business plan is likely to encourage a bank to provide financing, the expert concluded.

This comes after Susan Schreter, a university lecturer in entrepreneurship, told MSN Business that people should be careful not to pay more for a company than it is worth in real terms.