Bank Loan - This is usually a long term loan from the bank and is paid back over a long period of time such as 3 years and may have an interest rate. The amount that is borrowed will determine the interest rate that is applied. The sum of money will be paid into your bank account and will be available to use.
Overdraft - This is a short time source of finance, this Is an agreement with the bank that you can take out more money than you actually have in your account. This is usually a short term source as overdrafts have a higher interest rate compared to an ordinary bank loan.
Reinvesting Profit - Reinvesting profit is where you use the profit from a previous business venture and invest it into a current business venture.
Shareholders - Shareholders buy a share of a business or company in return for a percentage of the profits. For example if someone brought 30% of a business, they would receive 30% of the profits, they will also have to pay 30% of the total costs, to receive this profit.
Programme Advertisement - This is where you contact a business/company and negotiate with them about exchanging advertising space in the programme for a sum of money. This money can help towards the costs of putting together a show, as well as this it gives businesses a chance to advertise to a wider audience and target market.
Ticket and Programme Sales - This is the total revenue of all tickets and programmes sold, once taken away the costs of the venue etc, hopefully there is money let over - this is profit. Any profit that is made on this is a source of finance for the show and helps towards the costs of putting it on.
To begin with I would use my personal savings to start off my company, I would consider a bank loan to help with this. I would choose these because my company is small scale and would need help starting off. I would spread out this money evenly for each production. As my company grows bigger and progresses, I would use reinvestment money from previous shows.
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