You’ve got a great idea. You’re almost certain that it will take the world by storm. You’re confident in your entrepreneurial skills, but do you have the funds to launch a new business venture? If you’re thinking of going into business, it’s essential to realise the importance of funding and investment. Without any money, it’s very unlikely that you can turn an idea into a viable business concept. Here are some tips to get you started, and some lines of inquiry to pursue if you’re looking for financial assistance.
Before you begin
Before you start contacting potential investors, arranging meetings at the bank or ringing around relatives, you need to know exactly where you’re starting from. If you can put money in, this is a great start. Have a detailed look at your own finances, and check your credit score. If you’re thinking of applying for a loan, it’s wise to have a rough idea of where you on the credit scale. While you’re trawling through your financial past, it’s worth looking into the possibility of claiming PPI. If you’ve paid off a loan or you’ve had credit cards in the past, you could be owed money. If you work with experts who know how to claim back PPI, you could find yourself with a lump sum to put into your new business. Take a good look at your accounts, and work out how much you could afford to invest.
If you don’t have savings to put into your business, you may consider these other funding options.
Applying for a business loan
If you’re considering applying for a business loan, make sure you have an impressive business plan. You need to be able to convince the lender that you are a hot prospect, and there’s every chance that your business will be a great success. If you can’t answer the questions or the numbers add up, it’s unlikely that banks won’t want to take the risk.
With a loan, it’s best to start small and work your way up. You don’t want to borrow a huge amount of money, which you’re going to struggle to pay back for years to come. You can use a small business loan to get you started, and once you start growing and generating profits, you’ll be able to invest more yourself. A loan may be preferable if you don’t want to sacrifice ownership of your company.
If you’re preparing to launch a new venture, but you can’t afford to finance it yourself, you may be thinking about getting investors on board. Investors can come in many different guises. They are people who offer you money in return for a share of the company and the profits. You can approach investment firms, or you may prefer to look closer to home and ask friends and family. If you are hoping to secure external investment, again, it’s essential to be prepared. You’ll need a polished, accomplished pitch, and you should have all the answers to even the trickiest questions.
If you’re thinking of going into business, you need to have your finances sorted before you can do anything. If you don’t have your own savings to use, there are ways of securing an investment, so don’t give up before you’ve even begun. Good luck!