#UK Options for Funding Business Startups


Options for Funding Business Startups

Funding a business startup is the first big challenge or any entrepreneur. You have to consider how you’re going to secure initial funding to get your idea off the ground. Thankfully, there are more options than ever before for business startups. These options will help you to make your dreams a reality.


Family and Friends Funding 

It makes sense to start at home first. Your family and friends are the first port of call for some interest-free funding. Some people may disagree with borrowing money from those closest to them, but it really depends on your relationship with them. Just make sure that any terms and conditions for repayment are laid out in paper form so there are no disputes later. Even when borrowing from those closest to you, you should still treat the agreement as professionally as ever.


Get a Business Loan 

There are multiple avenues for claiming a business loan. The first and easiest option is your local bank. You will be expected to produce a business plan and a forecast. Only if the bank is happy with your plan will they authorize your loan. Your personal credit history may also come into play, but this differs between the banks.


If your bank is uncooperative, it may be worth seeing if there are any initiatives in your local area. This is where the local government offers grants and loans to startup companies in the area as long as they fulfill certain conditions. For example, sometimes a local government will provide business funding to a business if they employ one or two local people. This article on how to get a business loan is a good starting point to learn about what you need.



Sites like crowdfunding have provided businesses with the opportunity to receive money from donors in exchange for various perks, such as a free product sample or a poster or access to regular updates on what the company is doing. This isn’t an easy option, even if it means you can make thousands of dollars before your company opens its doors.


You have to pitch your idea (usually through a video) and promote your crowdfunding campaign. If you don’t get the amount of money you asked for, you get nothing. The vast majority of crowdfunding attempts fail. Less sexy businesses aren’t likely to see this as an option.


If you do want to try out crowdfunding, here are some tips for making it work:

  • Always produce a video. This is what gets you seen. Projects without a video rarely, if ever, get the funding they need.
  • Be transparent. People will see right through you if you attempt to lie about something or conceal the truth.
  • Make it marketable. This works just like marketing to a specific audience. You have to create a marketing plan and figure out who your target audience is.


Angel Investing

 Angel investing is where you can take out what are essentially lots of different loans with lots of different people. The online platform is designed to make accepting lots of different loans and investments easy. They are secure platforms that hold the money until it’s authorized to be released.


The business still has legal obligations as if the loans were taken directly from a bank. The difference here is that the angel investors don’t just give the business money they become part owners of that business. That means they are also entitled to dividends paid at a later date. Angel investing is slightly more successful than conventional crowdfunding, but it still requires a solid marketing pitch to make it work.


Last Word

 These four ways to gain funding for your business startup should give you a solid foundation to begin seeking investment. How will you get funding for your business today?

The post Options for Funding Business Startups appeared first on The Startup Magazine.

from The Startup Magazine http://ift.tt/1mrXhyn

This entry was posted in #UK by Startup365. Bookmark the permalink.

About Startup365

Chaque jour nous vous présenterons une nouvelle Startup française ! Notre pays regorge de talents et d'entrepreneurs brillants ! Alors partons à la découverte des meilleures startup françaises ! Certaines d'entre elles sont dans une étape essentielle dans la vie d'une startup : la recherche de financement, notamment par le financement participatif (ou crowdfunding en anglais). Alors participez à cette grande aventure en leur faisant une petite donation ! Les startups françaises ont besoin de vous !