“Don’t expect investors to be throwing millions on the table for you to go off and buy a bigger house.”
.
The Art of Startup Fundraising
Raising funds for business growth
The food of business is capital.
Feed your business first.
It’s likely that to fulfil any grand plans you have for your business will need a little financial assistance. Whatever your end goal, there are lots of ways to source the finances you need; however, be aware that each have pros and cons.
Here To Help
Raising finance is often the first hurdle business owners have to jump. There’s much to consider and funding your business with enough capital is frequently overlooked. Most companies that are underfunding will struggle with cashflow, and potentially cause the early demise of fledgling business.
With more companies launching than ever before, there is also more competition for whatever funds are available. However, there are still plenty of ways to raise some extra capital that can get your business off to a flying start.
Across all the pages in this section, we provide a series of guides to help you find what you should be looking for, particularly when it comes to funding your business to the right levels, so when that time comes, we can help you…
CHOOSE THE ADVISER WHO UNDERSTANDS YOUR NEEDS.
Securing a loan from the bank can be a challenge similar to applying to a mortgage. You need to show that you are a good investment and will be consistent with your repayments and have a strong business plan to match. You can often borrow any amount from £1,000 to £50,000 from any high street bank, and many offer fairly flexible repayment terms.
Make sure any bank you do borrow from is aware of what assets you will be buying with your loan.
This form of financing matches smaller scale investors to small businesses in need of funds. A loan is drawn from cash put together by savers looking for a good return – this can be accessed online and is easy and simple to apply for.
Repaying this kind of loan is similar to a bank loan, with an interest rate is agreed upfront.
Angel investing is sometimes known as ‘seed funding’. This can raise anything up to £1 million thanks to contributions from high-net-worth personalities who wish to invest in early stage businesses.
These individuals must have full confidence in you and your business, as they tend to invest in exchange for a share of the business. They are often invaluable for your business, bringing with them a lot of business nous, as well as a little extra cash!
If you need a significant investment into your business, you might consider a Venture Capital firm. These often request a large percentage of your business in exchange for their investment and are a highly competitive area. You’ll need a strong business plan, unbreakable strategy and a convincing pitch to win this over.
If you have a consumer facing business, crowdfunding can be a successful way of gaining funds. Putting out a message to your audience that the business is a good idea and will offer something for them will help convince investors to get involved. Each investor will take a small stake of the business and a digital-age version of share selling.
When looking for investing, it’s important to remember that you need it to be cost effective and convenient. Not all of these options will help you reach your goals, so make sure you take your time when considering these.
At the end of the day, you are either borrowing or seeking money. If you borrow, you’ll be able to keep all of your business but having regular repayments could become a slog while trying to grow your business. Investments will do the opposite; you won’t have to repay it and growth will be quicker, however you will have to share this with the other shareholders. Make sure you involve your accountant in any of these decisions.
Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email [email protected]
Or complete the contact form below and your details will be passed onto an adviser who will contact you to make a free consultation appointment.
Contact Us
Call: 01432 343322
Email: [email protected]
Alternatively, use the 'Adviser Finder' page here >
Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381
Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042
Will writing and some aspects of tax planning are not regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on a mortgage.
Capital is at risk and you may get back less than you invest.
The firm is not responsible for the content of external links.
