How to Get Business Funding for an Idea

31/10/2017
How to Get Business Funding for an Idea

Great ideas almost always start from humble beginnings. Start-ups all over the world happen when just one person has an idea, whether they’re driving their car, out shopping, or at the gym. And of course, therein lies the problem for lots of people with big ideas – they cost money rather than just an idea, and it isn’t always immediately obvious how that money can be acquired. In this article, we’re going to take a quick look at what it takes to get that funding that you need to get your start-up going, and where you should look.

The first thing to be aware of is that if you’re going to convince anyone to help you out with funding, then you need to have a sound plan in place first. Nobody wants to invest in an idea that’s vague, or doesn’t look like it’s going to go anywhere.

Business plans don’t have to be as big or intimidating as they might first appear, but they do need to do a really good job of convincing people to invest. You’ll need to sit down and get your plan down in writing; detailing exactly what you’re looking to do, how you’re going to do it, and what the financial details of all this really are.

Business plans don’t always follow a set format, but it often helps to ensure you’ve covered everything by looking at one. Fortunately, there are lots and lots of online resources out there to help you put one together. Even the government has guidelines to help businesses get off the ground.

One of the key questions will be around funding; how much do you need, when do you need it, and how will it be repaid? Think about whether you need cash up front, perhaps an overdraft facility, or just help when it comes to cash flow.

Once you’ve got this plan together, you can really start looking at how and where you’re going to get the funding to help get things going. Here are some of the major options that modern start-ups will want to consider:

Banks:

There may be dozens of different ways to get funding these days, but the big traditional banks are still a popular option for lots of small businesses that just want a lump sum of cash or an overdraft. You’ll need to go through the whole process of being checked for eligibility, and often finances are a very important part of this, so brand new start-ups might find it difficult to get funding. It’s a straightforward route however.

Business Finance Companies:

Companies such as Global Asset Finance Limited represent a different way of doing things in that they offer a variety of products to support UK small businesses. In some cases, it might not be that you need a loan.

Lots of SMEs find that they struggle with cash flow, which often is because they don’t get paid on time, or invoices don’t get paid at all. If your business plan doesn’t need a lot to start up, but you do need help making ends meet, then this is something you might consider.

Read business tips to find out more.

Investors:

There are lots of different options too when it comes to seeking out investors. It could be someone you know, they could be part of a local investment cooperative, or you might even choose to use a site that pairs you with a like minded investor. Whichever way you search, the benefit here is that you can showcase your full business plan, and you won’t necessarily have strict criteria to meet – you just need to convince one person, or a small group of people.

Crowdfunding:

One of the more modern and exciting ways of getting funding – often directly to get a business going – is crowdfunding. Using sites like Kickstarter, you can pitch your business plan to thousands of people from all over the world, and they can each chip in a little bit to get your idea off the ground. This does rely on your idea being attractive to a wide number of people, but it works for lots of start-ups.

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