Starting a small business can be real tough! We know, we were a small business once upon a time and had to go through all of those fun, hair pulling steps to get to where we are today. A lot of work, a lot of coffee, a few people, patience and most importantly, money! This is where these 5 tips on small business funding in the UK could have come in handy at that time, but at that time we didn’t have them – now we do, so saddle up and get ready to pay close attention to these 5 tips to get your small business funded.
Small Business Funding in the UK: 5 Tips To Getting Funding
Okay look, getting small business funding in the UK is pretty easy but you do have to know where the money is first.
The money comes from a number of places, so let’s look at those first:
Money from your personal savings
And yes I mean that cash you got stashed underneath your mattress; or tucked away in a very low interest savings account not doing anything, or the jar with coins for the next vacation.
Whatever you think you’re doing with it, that money is useless unless you put it to good use. In this case, starting a small business (but only if you know how to actually do it properly).
Money that’s not really yours (credit)
If you own a home you probably have some money in it, considered collateral. Maybe you got a car? Perhaps a line of credit or a credit card?
Well if you do, this a great source of funding to help your small business get funded through the startup process.
Now, should you go for this right away? Probably not a good idea unless you are confident you can use it, pay it back if all goes south and not have to worry about it.
Family and friends money
Everyone loves you, believes in you and wants you to succeed with your small business.
Will these same people consider funding your small business?
You don’t need a lot, maybe some from your parents, some from your cousin, some from your best friend, some from your aunt..etc
Sounds easy, doesn’t it?
Just be sure that you know what is attached to you borrowing money from friends and family and most importantly – make sure they know the possibilities (good and bad).
Let the government work for you
Small business funding in the UK does exist. There is a reason why we put “UK” in there. Of course you are in the UK, but did you know that your very own government has small business funding programmes available to help you as a small business?
Yes it’s true.
Government grants, small business loans, tax breaks, relocation incentives – it’s all there for the taking.
Well, you do have to be eligible, have a business plan, meet the criteria and so know which programmes you can apply to, but yep, it’s all there.
So look at it this way, if you’re looking for small business funding in the UK- these above 4 sources do have you covered.
What will you do?
Most people understand the sources are there but only a small percentage of people actually take the necessary steps to get funded.
If you’re a serious entrepreneur, these 5 tips to getting small business funding in the UK are right for you:
Write a professional business plan first.
You can’t be serious asking for money from anybody to start a small business without having a business plan.
Would you give money to somebody who just says “hey, I have a great idea give me some money”.
If you are a business minded individual, you know that having a business plan done can mean the difference between success and failure.
A business plan actually prepares you for the future of your business – it actually shows you the path that you need to take, not to mention what you need funding for and how much of it.
See what the competition is doing.
Your competition can tell you a lot about what you need – financing needs anyways.
By simply looking at your competition, as a startup business in the UK you could say well they have a great website, they advertise here, here and there – they have “x” amount of people working for the, in this area and they all are doing “this” with the latest computers and iPads. Just an example, but yet tells you a lot.
You can pick up the needs that you want to have met with funding and work your way though it.
Do you need to have a website? Yes? How much is a website going to cost? Find the low end providers, high end providers and meet in the middle.
The same logic applies for the advertising, hiring..etc
Break down your funding needs.
What you need funding for will be determined by your business plan and by the previous step where you research your competition.
While you may want to get £100,000 to startup because you want the latest and the greatest, it may not actually be what you need.
Did you know that most businesses starting up struggle and barely hang on the first year?
Those that struggle within the 1st year and make it are twice as likely to succeed and pass 10 years in business then those who have it all within the 1st year?
Break down your funding needs to the “t”. Be sure to only list what you need; and what you need initially to make it happen – no need to plan 6 months, 1 year or longer here just yet.
Get the help searching for small business funding in the UK.
A lot of people know where they can get money from; but yet asking for money is scary.
You may not want to use your personal savings, borrow against your house or even ask your family and friends. Maybe you just want to turn to the government? You do pay taxes, so maybe it’s time to get some of that money back?
Government funding is available across the United Kingdom. It comes in many different forms such as; government grants, government loans, tax breaks etc…
Finding these funding programmes is a bit difficult since the funds are not always from the British government directly. You may be eligible for regional programmes, local programmes and federal programmes as well – so a bit of digging is required.
Typically it takes 3 to 4 weeks to do this on your own, or you can consider getting expert help and using the Funding Database here at UKStartups.org to get a head start and access all available government funding programmes to fund your small business.
Finally, find funding by thinking outside the norm.
Small business funding in the UK is available.
As mentioned, it’s available from multiple sources but in order to actually get it, it’s highly recommended to think outside the norm.
What would you usually do?
Not use your personal savings – they are for emergencies. Forget that!
Borrow money from bank? No way, don’t need any more loans!!
Ask family and friends for money? Heck no; that’s just embarrassing!!!
Get government help? This just seems too complicated!!!
Well, if you’re going to think that way maybe starting a small business and getting your business funding just won’t happen.
If however you want to think and be outside your normal; maybe make a change, take a chance and get your small business in the UK funded!
Government funding is highly recommended and an excellent option with minimal risk.
Be sure to follow these 5 tips to getting small business funding in the UK for your own business!