How to Finance an Asset Management FirmJoshJuly 3, 20194 viewsIncome & Career0 Comments4 views 0 If you are considering setting up an asset management firm, there are many personal elements that you should consider such as your experience and market research. However, it is also important to consider how to finance and gain start-up capital for your business. Cut Down On Costs When your business is up and running, you should ensure that you have little outgoings by being economical. For instance, out-sourcing workers and cutting down on energy bills can help you to reduce costs. Energy comparison sites such as Utility Bidder can help you to find cheap business electricity through their unbiased advisory services. Think About Office Space Most asset management firms should be in a central and professional location so that they can connect with high-end clients, but finding an office that offers such does not come cheap. Therefore, you should find ways to reduce the cost through office size and equipment price. Gain Start-up Capital You should ensure that you have enough start-up capital through your personal savings or business ventures to pay for an office, employee fees, insurance, and marketing, all of which are part of your initial costs. Buy Into a Franchise Buying into a franchise rather than starting afresh is a good way to finance your business as you will have pre-made customers and an established reputation from which to work from. Consider Global Economics You should also ensure that you set up your business in a time of positive global economics and be aware of these at all times as these van highly affect your businesses’ finances. Invest in Insurance You should ensure that you buy insurance immediately to cover your finances in the case of claims made against you or damage to your firm’s property or equipment that would make you unable to work. Write a Business Plan Writing a business plan can help you to finance your business by showing you your needed capital, allow you to set targets and allow you to project future earnings, which you can then prepare for. Use Personal Savings You should finance your business from your personal savings if you have enough to support you. This is the best option as it means that you do not have to worry about paying back a loan amid a sometimes financially daunting first year. Sell Your Shares Selling the shares that you have in other businesses at the right time can help you to get the right amount of capital for your business if the stock markets are doing well. Apply for a Loan You can apply for a government loan through their small business loan schemes, or you can apply for a private loan with your local bank which you will then have to repay every month. Find an Investor You should also consider finding a business partner or investor who can support your business financially. You can do this through networking and pitching to different investors, entrepreneurs, businesses, and mentors. Apply for Grants Many businesses also run schemes and competitions which you can apply for in the aims of winning a grant for your business as a reward.