by Nick Robinson | Mar 21, 2013 | Business, Business Planning
Times are tough for finding money to start up your business. The most obvious choice is to go to the banks, but they are unwilling to lend and when they do, you’re often faced with some pretty unfavourable rates. So, what are you to do? You desperately need some cash from somewhere to get your idea off the ground. You’ve managed to save up a bit, but you need that final push to really get things going. Here’s a few options that’ll help you avoid begging on your knees in the bank manager’s office.
This is an option that might not work for everyone. If you’re planning on starting up a paper company or a delivery service, crowdfunding is probably not going to the be the place to go. Unless you’re offering some insane returns on investments or you have some kind of niche twist to your business, you won’t attract much attention. On the other hand, if you’re thinking about opening a cafe filled with cats, you might get somewhere. At the time of writing this, the Cat Cafe is not definitely going to succeed, but in a short amount of time they have managed to raise over £96,000, which is phenomenal.
A great idea can do extremely well on sites like KickStarter and IndieGoGo. People are much more generous than you might expect, and even tiny donations can add up to a massive success story. If you have an odd or clever idea, crowdfunding can be the way to go. If you’re savvy with social media, you can turn that to your advantage to. Make your project go viral and you’ll see yourself reach your goals with ease.
The Startup Loans Scheme
To be clear, this only applies to those who between the ages of 18 and 30. It might seem unfair, but that’s the way it is. The government have been going on since they took power about creating and supporting small businesses. While there have been plenty of policies, most have been complicated, stressful and still included lending from banks. The Startup Loans Scheme has been invigorated lately with the extension of its age range and publicity from James Caan.
There is no limit to the loan available, but the average is around £2,500. It will all be based on your needs. £2,500 obviously isn’t a lot, but it can be a great addition to money you already have or will be receiving later. There is also a huge amount of information to be got from the scheme to help ensure everything goes smoothly. To apply, all you need to do is go onto their site.
This is a tried and tested method, but it takes work. You can’t just waltz up to someone at a networking event, give them a little pitch and expect a big wad of cash. It takes preparation, planning and perseverance. Angel investors are a fantastic way to increase funds, but it isn’t going to be easy (unless you have some very kind and rich friends).
When meeting with an investor, ensure you have absolutely every facet of your business plan thought out as far as it can be. Show them that you’re serious and how your idea will be successful. They won’t be ignorant about business, so they’ll know if you are. Some will be more patient than others though, so it might just be a matter of finding the right fit. Along with your money, you might also get some great business advice off them too.