You've Got To Accumulate
Whether it's a one-person operation run from home or a meteor-smashing laser arsenal on the moon , you need solid funding for your start-up business. Whatever industry you're in, you've got to be clear how much money you need and where it's coming from.
It's far from easy. You'll need to work out your running costs and expected revenue, and you may have to run at a loss for a while. It takes time to make money, so you'll need to demonstrate good planning to get that all-important funding, wherever it comes from. Examples include:
Our cloud software partner, Clear Books, has found that 74% of start-up owners invest their own money into their businesses. Sometimes that means personal savings or redundancy money, sometimes it's selling off assets. Either way, showing commitment can be a head-start in getting others to take you seriously. If you're borrowing from friends or family, make sure everyone appreciates what they stand to lose if the wheels come off. Otherwise, failure could cost you more than your business.
These traditional sources of finance can be pretty difficult to access, and tend to involve rigorous application processes to weed out the dodgier prospects. Loans, overdrafts and credit cards are options, but they all come with their own risks and catches. Remortgaging your home can be less painful than taking out a loan, as you're paying the money back over a longer period, but it can be an uncomfortable experience to have your house on the line.
While most start-ups will tend to be ignored by traditional venture capitalists or "business angels", crowdfunding is turning into a serious option for young businesses. The commitment from each investor can be quite small, and they may not even need to receive a share of the business in return. This is a pretty huge topic in its own right, and the number of crowdfunding platforms is growing, so take the time to research and get in touch with RIFT Accounting to talk through the possibilities.
Grants are usually only open to specific types of businesses or people. They're worth looking into if you think you might qualify, but they may come with strings attached, such as match funding. Your local Enterprise Agency can advise you, or you can talk to us for more information.
If you can't raise the money you need, you may have to re-think. Perhaps that laser arsenal doesn't actually need to be based on the Sea of Tranquillity. Maybe it only requires a part-time or robotic maintenance crew.
The package you need will depend on whether you decide to become a Limited Company, but take a look at our pricing examples to see what suits you best. You can add and remove options so that you only pay for the services you need as your company grows and changes.
Drop RIFT Accounting a line to learn more. After all, those meteors aren't going to smash themselves, are they?
RIFT Accounting can help you balance your immediate needs with your long-term vision. We can help you work out:
You have to be realistic in your forecasts. This can sound complex and daunting, but it needn't be. Once we have your information in Clear Books, we'll be able to get your business running smoothly and efficiently enough to plot the course ahead. We'll even help you protect yourself against the nightmare scenarios of delayed product launches or cash flow crises.
From bank loans to private investment, there's risk in all forms of borrowing. However, if you go into it with your eyes open, we can show you ways to shield yourself and your business from the worst dangers and damage.
With a range of schemes in operation for start-ups and small businesses, knowing the territory could go a long way toward landing the funds you need. Better yet, RIFT Accounting has partnerships with a number of public and private sector organisations and we can help check if you are eligible.
Worthwhile investors rarely show up at your door by chance, so you'll need to show them a strong track record and a credible business plan. You'll also have to be prepared to make it worth their while. The more attractive you can make your business, the keener they'll be to grab themselves a piece of it. A good investor is more than a piggy bank, and the experience they bring may be more valuable than their cash in the long run.
We can also help you look at:
There's a lot to consider when funding a start-up, and every decision has the potential to make or break your business.
Get in touch with RIFT Accounting, and let's get that moon laser off the ground.