5 top tips to get the funding your business needs
You’ve
got the big idea. You’ve done your business plan, your financial forecasts and
your first year’s budget. So how do you get the start-up funding that will get
your new venture off the ground?
Marketing Manager at Mail Boxes Etc., James
Simmons, shares his top tips for small businesses and entrepreneurs.
Tip #1:
Start small
Some people are lucky enough to start their
business while still working. If you can continue to bring in enough money to
support yourself and your family while putting in those extra hours to get your
new venture up and running, you may find you don’t need start-up funding.
Instead, you’ll want to ensure your outgoings are as low as possible and keep a
close eye on your forecasting, so you know when it’s safe to turn pro.
Tip #2:
Keep it in the family
It can be tempting to turn to family members for a
loan or ask them to support you financially while you get your business off the
ground. According to Entrepreneur
it’s the most common way for start-ups to finance their new venture. It’s
important to treat this as a formal arrangement, though, to avoid
misunderstandings down the line.
Tip #3: Could
you qualify for grant funding?
It’s worth doing your homework to see if you could
benefit from start-up funding from charities and other organisations that
support the UK’s entrepreneurs. Websites like startups.co.uk
have detailed information about small business grants and how to apply for
them.
Tip #4: Crowdfunding
An alternative way to raise vital seed funding
from a range of backers is crowd funding.
Using an online platform, the idea is that with crowdfunding an entrepreneur
can attract a ‘crowd’ of people, each of whom takes a small stake in their
business idea, contributing to an overall funding target. As well as helping
raise money for your business, crowdfunding helps build a network of supporters
and can also create a newsworthy story that will help your start-up get
much-needed publicity.
Tip #5: Tried
and trusted
For a more traditional approach, your bank may be
the best place to start. Most offer loans and in-depth advice and support for
business start-ups. You’ll also find a comprehensive guide to sources of
business finances on You.gov.
Ready to start your business? Mail Boxes Etc.
offers a great range of services for start-ups. Register your company with us, get
a professional business address that projects the right impression from day
one, and choose from our Business Hub
services as and when you need them.