Starting a Business in Berlin

64 65 Starting a Business in Berlin A Beginner’s Guide CHAPTER 6 How does financing work and where does the money come from? The purpose of financial planning is for you to establish your capital requirements. Here, you have two questions to con- sider: how does financing work and where does the money come from? The possible answers to these can vary consi- derably: Capital comes from your own pocket, initial sales or loan capital in the form of bank or promotional loans. In certain cases, you can even opt for venture capital, state-run grant programmes or even a crowd-funding campaign. Generally speaking, it makes sense to have a combination of different financing types.