Starting a small business in the UK is easy with the amount of resources, the help available and the support from the government. This help and support also includes government funding to help cover your business startup costs.
In most cases, no matter the type of business you try to get into, there will be costs associated with starting up. These costs can be very clear such as rent, equipment, staff or they can be less obvious (but still add up to a hefty amount) such as costs of your internet, domain registration, website hosting and more.
All these startup costs are needed in order to get your business up and running. Unless you have the funds ready, you will most likely need to get the funding in place to be able to start successfully.
It is never a good idea to go into business without having some funds or capital available to you.
Available capital does not necessarily mean cash-on-hand, but the ability to obtain the required funding for various small business expenses you may have.
This funding can come from personal savings, credit cards, lines of credit, mortgage refinancing, business partners, family or friends, private investors or in this case, government funding agencies.
Covering your business startup costs with government funding
The UK government supports entrepreneurs in multiple ways.
Funding sources come from multiple levels of the UK government including local, regional and national.
When seeking funding from the government it is important that you as the business owner consider all funding options.
In this case, the various funding options offered by the government can help cover the startup costs associated with your business.
The funding available can, in some cases, provide you with the full funds you need or partially fund your needs.
Let’s take a look at some of the startup costs that the government can help you cover:
Your small business startup costs:
Even though each and every small business may have different startup costs (some can start a business for under £500 while others need £50,000+ to cover their startup costs), the various government funding options can help you cover these essential costs including:
- Costs associated with hiring and training your staff
- Purchase of tools, supplies and equipment
- Funds needed to launch and pay for marketing and advertising
- Costs of writing your business plan, consultation and legal fees
- Paying for rent, leasehold renovations or business acquisition
- Funds to improve your cash flow
- and more
These startup costs need to be very well-documented and explained before you can obtain any of the funds. It is not enough to simply say “I need funds for…” and then apply.
When applying for government funding for any type of purpose related to your business or startup, it is important to explain your needs in detail within a formal business plan.
In doing so, your business plan should clearly explain what you need the funding for, how much funding you need and why you need it. In addition to that, your funding needs should clearly show how you would benefit if you are successful at obtaining the required funds.
In other words, if you need £5000 to hire staff for 3 months, this needs to be shown in your business plan with an explanation of how hiring this staff member for 3 months will help your small business grow.
Your Business Plan:
With any request to have your startup costs covered by government funding agencies, it is important to outline and explain your business funding needs in detail with an allocation of the funds needed.
With that in mind, this has to be done in a formal business plan that outlines your entire business model and projected financials.
If you require assistance creating or updating a business plan that fits the government funding requirements, be sure to speak with a UK Startups expert and get the help your small business needs.