Funding your business

You’ve set up your business, researched your market, developed your business plan and organised your suppliers. However, before you begin to generate profitable income, financial funding is required to start up your business.

There are several sources of funding available, from bank loans to government-backed schemes to help support your business.

However, it is important to run through a plan and work out how much money is required to develop your business before sourcing funds.

So which sources of funding are best suited for your business?

Traditional sources

Government loan schemes are common sources of funding. A start-up loan is a good example, where low cost unsecured loans, business mentoring and products are available to entrepreneurs if their business plans are approved.

Bank loans can also be used to fund your business costs. Loans are useful for covering business assets such as vehicles and computers, and are not repayable on demand, meaning that you’re guaranteed the money for the whole term.

Selling shares of your business is another option to generate funds. Friends and family members can come in and invest into your company, entitling them to get a share of the profits.

New approaches

Crowdfunding start-ups such as Kickstarter and Indiegogo have grown popular over the past year, with 22,252 projects successfully funded through Kickstarter.

Supported by public funds, businesses pitch their ideas to a wider audience for them to invest more money into their business. If you have a loyal customer base, this could prove to be a useful source of funding.

Peer-to-peer lending (P2P) is another popular source of funding. Known as social lending, P2P works from matching individual lenders and borrowers online. For businesses this could mean better rates of funding from both borrowers and lenders due to efficiency.

To do list

As mentioned, it’s important for you to develop a plan in order to work out how much money is required to fund your business.

Below is a simple structure for businesses to go through in order to raise funds.

Working out how much is needed

The initial process to discuss your funding requirements. How much are you going to need and how realistic are your figures.

Best funding options

There are several options available to provide the funds you need to run your business. Trusted sources of finance can save you time and help you gain the funds that you need.

Business plans and pitches

Knowing what’s important to a potential source of funding will help you tailor your plan accurately to the needs and motivations of your peers. This will increase your chances of getting a grant or loan to fund your business.

Negotiating

Ensure that you set some time aside for negotiating terms. Be realistic about the fees and costs involved, factoring them in your funding requirements.

How we can help

We can help you to ensure that you find the best sources available to fund your business. Contact us today to get our expert team on the case. 

21 Lodge Lane
Grays
Essex
RM17 5RY

Tel: 01375 383888
Fax: 01375 391672
E-mail: info@blandbaker.co.uk