Another source of financing I may utilize is borrowings from my relatives or friends who would be willing to lend me some money, which I could repay once the business is making profit.
Moreover, I may seek potential business partners who have the financial capability to answer the capital needs of the small company. As such, they may become co-owners, thus, be entitled to receive portion of the earnings of the business.
Aside from these, I may also utilize external financing sources to address my capital requirements. In this regard, I can resort to borrowing funds from banks and other financial institutions2 that specialize in dealing with business entities and implement special lending schemes for start-up enterprises. In addition, I can borrow from specific government development agencies that support small-scale industries or apply in organizations that give out business grants for creative entrepreneurs3.
It should be noted that borrowing, deemed as long-term loan, from external sources entails risk exposure, therefore, this option is usually a major decision for small businesses. Given this, I should ensure that the company has the ability to service this loan including interest and that the loan terms are not burdensome to meet for small business owners like me.
The capital gathered from these sources would be...
It would also be used for the construction of a small water treatment facility and purchasing or leasing the land where this would be located. Moreover, the capital would be allocated for the company's pre-operating expenses like promotions and launching as well as initial operating expenditures including salary, power, water expenses and other fees.
4. Government agencies and regulations to be dealt with by business owner
As a small business engaged in the manufacturing and selling of bottled mineral water, I, as the business owner, would have to initially deal with the Food & Drug Administration (FDA), particularly the Compliance Department. This is because this agency would first have to ensure that I am complying with their regulations. For instance, the FDA would inspect my equipment and products to find out the bottled water to be sold meets the standard set in the Food, Drug and Cosmetic Act.
Being a producer of bottled mineral water, I am also responsible for manufacturing safe and truthfully labeled products. In this regard, the FDA would have to check randomly that Aqua-Pure products are not misbranded, properly packaged and follow established standard of identity regulations. The packaging should also clearly indicate the type of bottled water being sold. Furthermore, the FDA would test if the chemical, physical, microbial and radiological properties of Aqua-Pure products are within the normal levels prescribed in the standard of quality regulations of the agency.4
Aside from these, my company would also have to abide by the current good manufacturing practices regulations of the FDA. With this, Aqua-Pure Company must have the proper plant or equipment design as well as conforms to the required procedures for bottling and