Start up Finances – How to get the funding you need

You have a great idea for your new business, and you need finance to get it off the ground. All the ideas are there, but when it comes to funding, where do you turn to? There are many places where businesses can apply for start up finance. Before you can do that, you need to look at the business model to find out which funding source is best for you.

Business model

A business plan is a must before you approach any would be investor whether that is the bank or grant funding. The plan needs to be airtight including all the figures and cash flow to show growth in the business and how you expect to achieve it. A really important element is to show how strong the financial side will be and how you expect the money to propel the company and sustain it long term. Investors need to see this is not a short-term business but one where they can continue to receive a growth on their investment. Let’s have a quick look at where you can get your start-up finance from.

Grants

Depending where you live and the industry you are thinking of entering, you can apply for a grant. These can be low-interest rates on repayments. Grants can be difficult to hunt out, and you will really have to do your research.

Banks

Banks have dedicated business teams that can talk you through your plan and then can offer you money. The only issue with going straight to a bank is you are limited to their products.

Franchise

Franchises can be bought into, or you can start a franchise and reap the benefits of selling on your business model. Banks are more amiable to lending money to an established franchise meaning you are more likely to get start-up finance from them.

Business Angels

These types of loans or investments can be really hard to source. Business Angels are businessmen or women who are looking to invest their money in other companies. They all work on their own contracts, so you need to make sure you read the small print and know exactly what they expect from you and vice versa.

There is a lot to take on board when you are first starting out in business. If the finance side of it is something that you know, you will need support with why not try finding a company that will support you and your business model. There are some great virtual CFO companies offering you just what you may need when it comes to your start up finances. When looking for a firm to assist you make sure you decide beforehand what you need from them. Companies can help check out your new business idea and see if it is actually something that will work and sustain you a life – monetarily and work/ life balance. They can help assist with seeking out finance, knowing where to look as this is their job. You don’t want a company who take you on then once the finance is organised, leave you – or maybe you do! If you want or need assistance further down the line to help ensure the growth of the business, find a team who you feel comfortable can offer you that.

Finance and accountancy are a major part of any business. These are the areas that can drive your company forward and upward. Make sure you have all the help and support you need in these key areas to make yourself a success.