Looking for Funding
by Leo Dunne, SME Funding Specialist
When starting a new business you will never have enough money to do it exactly the way you’d like to. You can focus on spending on business critical items and making sure that the income you’re generating covers costs; but what happens when you need to pay for something before you can afford it and growing your business depends on buying it?
The most likely source of help is family and friends who will provide spare cash to you because they believe in you and what you’re doing. If you don’t have this option, you need to go looking for funding from, well, let’s face it, strangers. And then you have to ask why would a stranger provide me with the funding I need to grow my business?
There are really only five types of funding for businesses but they will all have a requirement for a return from the cash;
- Additional capital, i.e. investment
- Or a Hybrid of the above
So which sort of funding is right for you? Most providers will tell you something about what you need to do to get their attention, the type of funding they are offering, why they are offering it and what you have to give them in return. You need to do some research; go online, read articles and speak to people who might know.
The next question is do you have a thorough understanding of why this funding is critical, how much you need, when you need it, how you will use it and what positive impact it will have on your business development.