When it comes to business finance the saying ‘it takes money to make money’ fits right in; you need business finance in order to get your business started, for it to operate, expand and grow.
There are a range of options open to you when it comes to gaining the right business finance for your company but you need to choose the one that is right for your business. To do this you should look at all of the advantages and disadvantages of each of the financing options that are open to you. Some examples of these financing options are as follows:
Short term sources of finance:
• Bank overdraft
• Trade Credit
• Leasing
• Bank loans
• Credit cards
Long term sources of finance:
• Bank loans
• Share capital
• Debentures
• Asset sales
• Venture capital
• Government, local authority or EU grants
Every business, especially at the start-up stage will need some form of finance. There is a lot that needs to be spent before your business even starts to make money. Below are just a few examples of some of aspects that you will need to spend money on when it comes to your business start-up:
• Purchase capital items (fixed assets) e.g., plant, equipment, land or buildings, motor vehicles;
• Increase holdings of trading stock and supplies;
• Fund research and development;
• Expand distribution or develop new markets.
On top of this you will have the property costs, including bills and your staff wages to cover. Once your business starts to make money these aspects will be covered by the profit that your business is making but until then you will have to rely on the money that you will have gained for your start-up costs.
When you are in the process of gaining your business finance it is important that you have an accurate idea of your financial needs. In order to do this you need to calculate the amount you need to cover your initial start-up costs as well as this you have to take into account you’re running costs and expenses. This is due to the fact that for a while you will be running your business without it making a profit but you still need to pay all of your bills as well as to keep trading. I would suggest that you have enough funds to cover at least six months of your business running.
One way in which you are able to secure the business finance that you need is through your business plan. Good planning will make it easier to raise the money that you need, which is why your business plan is important. Your plan will detail and outline what the money is needed for, exactly where the money is going to be spent and how this will benefit your business as well as demonstrating how the money will be repaid. Your business plan could make or break whether you receive the finance that you need.
If you are looking for business finance at the moment make sure that you approach the avenue that is most suited to you and that you have took into account the advantages and disadvantages of the finance you are after.
Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Finance.
Wednesday, 20 August 2008
Starting your Business up with the right Finance
When it comes to business finance the saying ‘it takes money to make money’ fits right in; you need business finance in order to get your business started, for it to operate, expand and grow.
There are a range of options open to you when it comes to gaining the right business finance for your company but you need to choose the one that is right for your business. To do this you should look at all of the advantages and disadvantages of each of the financing options that are open to you. Some examples of these financing options are as follows:
Short term sources of finance:
• Bank overdraft
• Trade Credit
• Leasing
• Bank loans
• Credit cards
Long term sources of finance:
• Bank loans
• Share capital
• Debentures
• Asset sales
• Venture capital
• Government, local authority or EU grants
Every business, especially at the start-up stage will need some form of finance. There is a lot that needs to be spent before your business even starts to make money. Below are just a few examples of some of aspects that you will need to spend money on when it comes to your business start-up:
• Purchase capital items (fixed assets) e.g., plant, equipment, land or buildings, motor vehicles;
• Increase holdings of trading stock and supplies;
• Fund research and development;
• Expand distribution or develop new markets.
On top of this you will have the property costs, including bills and your staff wages to cover. Once your business starts to make money these aspects will be covered by the profit that your business is making but until then you will have to rely on the money that you will have gained for your start-up costs.
When you are in the process of gaining your business finance it is important that you have an accurate idea of your financial needs. In order to do this you need to calculate the amount you need to cover your initial start-up costs as well as this you have to take into account you’re running costs and expenses. This is due to the fact that for a while you will be running your business without it making a profit but you still need to pay all of your bills as well as to keep trading. I would suggest that you have enough funds to cover at least six months of your business running.
One way in which you are able to secure the business finance that you need is through your business plan. Good planning will make it easier to raise the money that you need, which is why your business plan is important. Your plan will detail and outline what the money is needed for, exactly where the money is going to be spent and how this will benefit your business as well as demonstrating how the money will be repaid. Your business plan could make or break whether you receive the finance that you need.
If you are looking for business finance at the moment make sure that you approach the avenue that is most suited to you and that you have took into account the advantages and disadvantages of the finance you are after.
Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Finance.
There are a range of options open to you when it comes to gaining the right business finance for your company but you need to choose the one that is right for your business. To do this you should look at all of the advantages and disadvantages of each of the financing options that are open to you. Some examples of these financing options are as follows:
Short term sources of finance:
• Bank overdraft
• Trade Credit
• Leasing
• Bank loans
• Credit cards
Long term sources of finance:
• Bank loans
• Share capital
• Debentures
• Asset sales
• Venture capital
• Government, local authority or EU grants
Every business, especially at the start-up stage will need some form of finance. There is a lot that needs to be spent before your business even starts to make money. Below are just a few examples of some of aspects that you will need to spend money on when it comes to your business start-up:
• Purchase capital items (fixed assets) e.g., plant, equipment, land or buildings, motor vehicles;
• Increase holdings of trading stock and supplies;
• Fund research and development;
• Expand distribution or develop new markets.
On top of this you will have the property costs, including bills and your staff wages to cover. Once your business starts to make money these aspects will be covered by the profit that your business is making but until then you will have to rely on the money that you will have gained for your start-up costs.
When you are in the process of gaining your business finance it is important that you have an accurate idea of your financial needs. In order to do this you need to calculate the amount you need to cover your initial start-up costs as well as this you have to take into account you’re running costs and expenses. This is due to the fact that for a while you will be running your business without it making a profit but you still need to pay all of your bills as well as to keep trading. I would suggest that you have enough funds to cover at least six months of your business running.
One way in which you are able to secure the business finance that you need is through your business plan. Good planning will make it easier to raise the money that you need, which is why your business plan is important. Your plan will detail and outline what the money is needed for, exactly where the money is going to be spent and how this will benefit your business as well as demonstrating how the money will be repaid. Your business plan could make or break whether you receive the finance that you need.
If you are looking for business finance at the moment make sure that you approach the avenue that is most suited to you and that you have took into account the advantages and disadvantages of the finance you are after.
Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Finance.
Obtaining extra Business Finance – Business Grants
In business we all sometimes need that extra little bit of cash to get certain business ideas off the ground. There are many ways in which you are able to gain extra business finance such as loans, overdrafts, credit cards or through private investors such as business angels; however what do all of these have in common? They all have to be repaid in one form or another but with a business grant it’s another story.
Business grants are a sum of money that is awarded to your company for a very specific purpose or project. This money means that you can undertake the changes that you want to make to your business without having any debts at the end of it; sounds too good to be true? Well let me assure you this is completely genuine but like all things that seem too good to be true there are a few catches. You are only awarded between 15% and 50% of the total money that you need to carry out your project; the rest of the money needed has to come from you. The percentage of the total cost that you will be awarded depends on how much money you need for your purpose or project.
There are many ways in which you can obtain a grant some of the main ones are as follows:
• The government
• The European Union
• Regional Development Agencies in England, Scottish Enterprise, the Welsh Development Agency and Invest Northern Ireland
• Local authorities or local councils and local development agencies
• Chambers of Commerce
• County Enterprise Boards
The main type of business grants that are available are government grants and the reason that they came about was as a way of encouraging entrepreneurialism and innovation, which will translate into opening up more jobs within the business and adding value to the business, which is done mainly through the businesses profits.
Some of the reasons as to why you may be awarded a grant are for the purchasing of machinery, to improve office conditions, increase employment and developing export markets. Everything that it will be awarded for comes down to the idea of helping you to develop your business.
To be in with a chance of receiving a business grant you need to make sure that you meet the conditions set out by the grant. These conditions are that you have to have the rest of the money for your specific project or purpose ready and the project can’t have already been started. These are strict terms and conditions that apply to all grants. If these aren't followed, immediate repayment of the grant can be required. However, generally you do not have to repay grants or interest on them unless you break the conditions.
Applying for grants can be time-consuming. You will generally be required to submit your business plan, as well as completing the specific paperwork for the scheme. Once your application has been made it will enter the reviewing stage where your application and proposal will be assessed using the following criteria:
• Significance
• Approach
• Innovation
• Their assessment of your expertise
• Need for the grant
There aren’t many grants available, which means that competition for them is high so if you aren’t successful this time then I advise you to take on board the reasons as to why your application was turned down so that you can work on these points and apply again.
Helen is the web master of Angel Start-Ups, who are experts in all aspects of Business Finance, which includes Business Grants.
Business grants are a sum of money that is awarded to your company for a very specific purpose or project. This money means that you can undertake the changes that you want to make to your business without having any debts at the end of it; sounds too good to be true? Well let me assure you this is completely genuine but like all things that seem too good to be true there are a few catches. You are only awarded between 15% and 50% of the total money that you need to carry out your project; the rest of the money needed has to come from you. The percentage of the total cost that you will be awarded depends on how much money you need for your purpose or project.
There are many ways in which you can obtain a grant some of the main ones are as follows:
• The government
• The European Union
• Regional Development Agencies in England, Scottish Enterprise, the Welsh Development Agency and Invest Northern Ireland
• Local authorities or local councils and local development agencies
• Chambers of Commerce
• County Enterprise Boards
The main type of business grants that are available are government grants and the reason that they came about was as a way of encouraging entrepreneurialism and innovation, which will translate into opening up more jobs within the business and adding value to the business, which is done mainly through the businesses profits.
Some of the reasons as to why you may be awarded a grant are for the purchasing of machinery, to improve office conditions, increase employment and developing export markets. Everything that it will be awarded for comes down to the idea of helping you to develop your business.
To be in with a chance of receiving a business grant you need to make sure that you meet the conditions set out by the grant. These conditions are that you have to have the rest of the money for your specific project or purpose ready and the project can’t have already been started. These are strict terms and conditions that apply to all grants. If these aren't followed, immediate repayment of the grant can be required. However, generally you do not have to repay grants or interest on them unless you break the conditions.
Applying for grants can be time-consuming. You will generally be required to submit your business plan, as well as completing the specific paperwork for the scheme. Once your application has been made it will enter the reviewing stage where your application and proposal will be assessed using the following criteria:
• Significance
• Approach
• Innovation
• Their assessment of your expertise
• Need for the grant
There aren’t many grants available, which means that competition for them is high so if you aren’t successful this time then I advise you to take on board the reasons as to why your application was turned down so that you can work on these points and apply again.
Helen is the web master of Angel Start-Ups, who are experts in all aspects of Business Finance, which includes Business Grants.
Are you in need of Private Investment for your Business?
Private investments come from private investors, who are more commonly known as, for example, business angels or venture capitalists. They provide equity funding for business opportunities and are a common source of funding for early stage and start up businesses.
If you are hoping to gain the help of a private investor there are certain aspects that need to be taken into account; firstly your business plan is reviewed and the services that you want for your business are discussed with the investor, who then go onto meet the management team of your company.
A private investor is concerned with the success of your business and will do everything possible in order to make your business grow and succeed. Due to this there is a lot of contact between the investor and your company.
Private Investors are professionals who have expertise in a certain field. Although investors are willing to invest across all areas of business and usually at any stage of business it is best to try and enlist the help of a private investor who has experience, industry knowledge and industry contacts within the business sector that your company is based in. This way your business is being presented with the best possible chance of success. Also it is best to gain the help and knowledge of a private investor who is local to where your business is based. The reason for this is because private investors prefer to invest close to their homes. So if you are looking to enlist the help of a private investor you may want to think about attending local industry conferences, networking associations, or chambers of commerce as a way of finding a private investor who is perfect for your business.
A Private Investor will help your new business reach success by giving you a great source of start-up business capital in return for an equity stake within your business. Private Investors take a risk on your behalf and invest in all types of new businesses, so whether you are going into interior design, art and photography, contracting, catering or opening a new day care centre, there is a private investor who will be able to help you.
Businesses that show promise of success attract Private Investors, as do businesses that Private Investors find of interest. Private investors are also interested in knowing specifically what their money is going to be used for. So if you are hoping to gain a private investor for your business you need to decide on the amount of money that your business needs. This number should be a calculated number and not just an estimate.
So who exactly are these Private Investors? Well the vast majority are generally wealthy individuals; Private Investors are exceptionally successful entrepreneurs, meaning not only can a Private Investor offer a new business start-up capital; they also offer the business their expert advice and outstanding management skills.
If you want to enlist the help of a private investor then look around the Internet; you are bound to find an investor who is perfect for your company.
Helen is the web master of Angel Start-Ups, providing you with all aspects of Private Investors, including Business Angels and Venture Capitalists.
If you are hoping to gain the help of a private investor there are certain aspects that need to be taken into account; firstly your business plan is reviewed and the services that you want for your business are discussed with the investor, who then go onto meet the management team of your company.
A private investor is concerned with the success of your business and will do everything possible in order to make your business grow and succeed. Due to this there is a lot of contact between the investor and your company.
Private Investors are professionals who have expertise in a certain field. Although investors are willing to invest across all areas of business and usually at any stage of business it is best to try and enlist the help of a private investor who has experience, industry knowledge and industry contacts within the business sector that your company is based in. This way your business is being presented with the best possible chance of success. Also it is best to gain the help and knowledge of a private investor who is local to where your business is based. The reason for this is because private investors prefer to invest close to their homes. So if you are looking to enlist the help of a private investor you may want to think about attending local industry conferences, networking associations, or chambers of commerce as a way of finding a private investor who is perfect for your business.
A Private Investor will help your new business reach success by giving you a great source of start-up business capital in return for an equity stake within your business. Private Investors take a risk on your behalf and invest in all types of new businesses, so whether you are going into interior design, art and photography, contracting, catering or opening a new day care centre, there is a private investor who will be able to help you.
Businesses that show promise of success attract Private Investors, as do businesses that Private Investors find of interest. Private investors are also interested in knowing specifically what their money is going to be used for. So if you are hoping to gain a private investor for your business you need to decide on the amount of money that your business needs. This number should be a calculated number and not just an estimate.
So who exactly are these Private Investors? Well the vast majority are generally wealthy individuals; Private Investors are exceptionally successful entrepreneurs, meaning not only can a Private Investor offer a new business start-up capital; they also offer the business their expert advice and outstanding management skills.
If you want to enlist the help of a private investor then look around the Internet; you are bound to find an investor who is perfect for your company.
Helen is the web master of Angel Start-Ups, providing you with all aspects of Private Investors, including Business Angels and Venture Capitalists.
Are you planning on starting up within Business?
Going through with starting a new business is both exciting and rewarding as well as being full of challenges. It requires your full commitment, drive and perseverance. All of these qualities will go a long way to transforming your business idea into a reality, which is especially important during the early days of your business.
There are certain qualities that are commonly found in successful business people such as self confidence; you must have belief in yourself and passion about what your business is about as well as what it offers. You also need enthusiasm, which will win people over with your ideas.
Self determination is another quality that is essential with business. You need to have a belief that the outcome of events are down to your own actions. The success of your business will partly depend on your skills and attitude. This involves being honest about a range of issues, including your knowledge, your financial status and the personal qualities that you can bring to your new business.
Two other examples of personal qualities that are essential to new business owners are commitment, which includes the willingness to make personal sacrifices through long hours, which leads to a loss of leisure time. As well as commitment you also need perseverance, which in business is the ability to continue despite suffering setbacks, financial insecurity and exposure to risk.
When you are setting up a new business there are several aspects that need to be taken into account such as the sales and marketing of your business. This is crucial to the success of your business. You need a marketing strategy, which will help you identify potential customers and target them.
It is essential that you have the right reasons for wanting to start and run your own business as there are no secret tricks to making a business successful; it comes down to pure hard work. Most businesses also emerge from a hobby, which is fine as long as it can make you money.
Once you have got your business idea together and you have decided on your business name you need to identify your target market. You need to ensure that you fully understand who your customers are and why they would consider spending their hard earned cash with you. You need to understand what unique qualities you and your business provide are better than those of your competition. This is commonly referred in general business terms as your USP or Unique Selling Point.
One aspect of business that many people often overlook is any aspects of law that may affect their business. There are actually four definite acts of law that will affect any business hoping to make a trade; these acts of law are as follows:
• Consumer Protection Act 1987
• Trade Description Acts 1968 and 1972
• Sale of Goods Act 1979
• Health and Safety at Work Act 1974
Some points that these various acts make are that the products and goods that your business sells must be fit for their purpose and if they are faulty customers are entitled to a full refund or a full repair of the product. The goods or products that you sell must also live up to any claims that you make about them as it is a criminal offence to make a false claim. As well as this the goods or products must meet certain safety standards because if a product is faulty and causes injury then a claim can be made against you.
As long as you thoroughly research and plan the start up of your business I’m sure you will do fine and if at any point you do get stuck there is help available; on the Internet there are countless sites offering you help and advice so remember you are never alone in this.
Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Start-up.
There are certain qualities that are commonly found in successful business people such as self confidence; you must have belief in yourself and passion about what your business is about as well as what it offers. You also need enthusiasm, which will win people over with your ideas.
Self determination is another quality that is essential with business. You need to have a belief that the outcome of events are down to your own actions. The success of your business will partly depend on your skills and attitude. This involves being honest about a range of issues, including your knowledge, your financial status and the personal qualities that you can bring to your new business.
Two other examples of personal qualities that are essential to new business owners are commitment, which includes the willingness to make personal sacrifices through long hours, which leads to a loss of leisure time. As well as commitment you also need perseverance, which in business is the ability to continue despite suffering setbacks, financial insecurity and exposure to risk.
When you are setting up a new business there are several aspects that need to be taken into account such as the sales and marketing of your business. This is crucial to the success of your business. You need a marketing strategy, which will help you identify potential customers and target them.
It is essential that you have the right reasons for wanting to start and run your own business as there are no secret tricks to making a business successful; it comes down to pure hard work. Most businesses also emerge from a hobby, which is fine as long as it can make you money.
Once you have got your business idea together and you have decided on your business name you need to identify your target market. You need to ensure that you fully understand who your customers are and why they would consider spending their hard earned cash with you. You need to understand what unique qualities you and your business provide are better than those of your competition. This is commonly referred in general business terms as your USP or Unique Selling Point.
One aspect of business that many people often overlook is any aspects of law that may affect their business. There are actually four definite acts of law that will affect any business hoping to make a trade; these acts of law are as follows:
• Consumer Protection Act 1987
• Trade Description Acts 1968 and 1972
• Sale of Goods Act 1979
• Health and Safety at Work Act 1974
Some points that these various acts make are that the products and goods that your business sells must be fit for their purpose and if they are faulty customers are entitled to a full refund or a full repair of the product. The goods or products that you sell must also live up to any claims that you make about them as it is a criminal offence to make a false claim. As well as this the goods or products must meet certain safety standards because if a product is faulty and causes injury then a claim can be made against you.
As long as you thoroughly research and plan the start up of your business I’m sure you will do fine and if at any point you do get stuck there is help available; on the Internet there are countless sites offering you help and advice so remember you are never alone in this.
Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Start-up.
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