It’s been on your mind for ages, you’ve told your partner, your friends and your family all about your new business idea, but just how are you going to fund it? With so many things to think about starting a business can seem like a mine field especially where money lending might be involved. We’ve put together our top 5 new business funding ideas;
Savings: Have you been saving for a rainy day or had some money gifted to you? The best place to look for funds when starting a new business is on your own turf. The benefits of this are that the business will start with no debts or money owed and so all profits made from your business idea will be yours.
Bank Loan: This can be a longer and more complicated process but is often the most common way forward for any entrepreneur especially if your business dream includes property. Be sure to have all the correct information before approaching the bank, such as a business plan. If purchasing a going concern you will need to request some financials from the business broker who is dealing with the sale. Sovereign Business Transfer has working relationships with a number of commercial lenders who may be able to help you progress with your business. Click to see our funding and legal page for more information.
Friends & Family: Approaching anyone to ask for a loan is a daunting thought but when asking friends or family to invest in you they may be more likely to have trust in your cause. Mixing business and pleasure is sometimes not the best option, for example a late payment may not cost you any interest however could endanger and personal relationship you may have.
Investors: Also known as business angels they can provide a percentage of the required funds but in return may own a small part of your business. This is a good option if you already have part of the cash and can also be beneficial to the growth of your business if you select the right investor. Using a business angel will give you access to a wealth of knowledge and understanding of business.
Pensions: Becoming increasing popular way of purchasing or funding a business idea is a pension draw down. If over 55 you can access as much of your pension fund as you wish and use to invest. See our other article Over 55? You Could Be The Entrepreneur Of The Year for more on this method.
If you are looking to purchase a business for sale Sovereign Business Transfer are here to help, complete our registration form here or call 0161 486 1958 where our sales department will be happy to assist in finding the right business for you.