Your own money

Investing in your own business can be a low-cost option since you don’t have to pay interest on your own money.  However make sure you’re not putting everything at risk, and that you keep enough in reserve to keep you afloat in these difficult times.

Borrowing from friends and family

This can also be a low-cost source of funds, but if you go down this route, make sure that your family and friends are fully aware of the risks. Using this method of fund raising, can, if it goes wrong,  jeopardize your family relationships and cause a lot of personal issues.

External investors or Business Angels

To attract external investment successfully, you need to capture the interest of potential investors with a good business plan which shows things like:

• Your vision and goals for the business.
• Financial projections, cash flow forecasts etc., showing how much finance you need and what you’ll spend the money on.
• What return the investor will get and how you will repay them, with the profits they can expect to see.

If you can try to make a contribution yourself then it shows you’re committed to the business which can also help attract an investor.

Retained earnings

These are the profits you keep in your business and are the main source of finance for established companies that are already up and running. So ultimately they are the cheapest way to fund growth plans.

Grants and awards

Grants tend to be one-off payments to fund specific costs, while awards recognise achievement. Both are usually more available to businesses that are just starting out, or that are based in areas that need regenerating economically. You can find out more about grants and awards from European and UK government websites, plus local councils and various enterprise agencies.

Why not contact us today to see what we can do to help fund your business?