Corporate Activities’ Budget

How to financially sponsor corporate activities

There are many options to sponsor your activities’ corporate, include sponsor amounts, loans and present budget. It is difficult to have a good choice; you can see some problems before making decision:

Clearly identify that how much you need

How much you have to invest?
Where is your place and how much of operation cost monthly? In case of putting your workplace at home, there are still some expenses like power, water…
What equipment do you buy and how much?
Do you storage your goods and how much?
How many employees do you need? Calculate salaries including bonus and incentive
Do you need a car to do transporting? What do rental and delivery cost?
How much for the accounting, legal or advertisement?

Use your own budget?

Think about what you do to save money, especially additional money you need
Keep another job while testing a new business idea which guarantee the start-up income

Government financing

Some government financing and support programs use for businesses

Loans and equity

Bank loans
Release bonds: An amount of money of investors buying your company’s bond.

	Loans	Bonds
Strengths	Loan repayments are tax deductible You fully own your business and profit	The investors share risks with the owner, therefore, if you fail, there is no need to repay the capital. No need to pay for interests, but you have to give the investor an amount of profit – maybe more than the interest.
Weaknesses	Have to pay the interest Have to repay the loans Provide the solution to guarantee for your loans	Have to share your ownership; if you success, it will be shared for other You can be lost your control in company Investors can join in making decision and receive a part of profit annually

Option 1: Bank loans

Make sure that you choose your suitable loans that meet your need of business

Short-term loans for daily budget and medium-and-long-term loans for property purchases.

For example:

You need	Choice
Increase cash flow or need more money in short-term	Business Credit cards Guarantee Overdraft
Long-term business development	Supplement capital loans Loans for production and business in installment for SMEs
Car and property purchases	Car loans Project investment loans

Option 2: Bonds

Shareholders:

Find the suitable shareholders

Find people who have targets and suitable wish. Include:

Family & Friend	Some owners get support from family and friends. For relatives, you will broaden your terms rather than the outsider, this is not for weak-psychological people You have to reveal some business details with your closed member, and if something wrong and they lost their investment, it can kill your relationships
Business partnership	You need to be confident to satisfy partners in a long time. A cooperative agreement specifically identifies how to deal with the argument and what happens if someone leaves the business.
Individual investors	This is some rich individuals who find fast-developed companies to invest in. With experience, they can be valuable consultants These investors like supporting fast-developed companies, therefore, you need to prove your potentials
Venture capital funds	Venture capital fund investor who is a professional investor putting their money in some potential companies and support their development until they are listed in stock exchange. They gain money by selling their bonds internal or external. An equity trader will typically divest your business in 3-5 years at a rate of return 35% per year or more

Corporate-Activities’-Budget