Whether you’re a start-up or an established business, the likelihood is that you will need some professional advice at some point. Fundamental to all business is cash flow and raising cash for your business can be a minefield at times, so with this in mind it’s important to consider that there are many possible sources of finance available.
Money can be raised from banks, private individuals and companies, venture capital funds, charities or local authorities.
Take time to understand how different types of finance might impact your business and if you are unsure, ask. Crucially remember securing loans on your house or giving personal guarantees is a major step. Do not take it lightly or without discussing it with your family.
Here are a few tips to help you when looking at raising finance:
Be very certain that you ask for the right amount of money; it is very difficult to go round a second time and ask for more. Ensure that you check this with your business partner or at least one other person close to the business, the last thing you want is to fall short
Make sure your figures add up – do your sums and then check your sums.
Ensure that you have planned or rehearsed your presentation or pitch
Be committed to your business and demonstrate this both on a financial and personal level – investors don’t generally back part-timers
Put your sales hat on – remember investors want to see you paint a picture of why you need the finance, they can only do this if you exert some passion