How to fund a small business in the UK
It’s one thing to have a great idea, but it’s quite a different story in terms of actual implementation. The good news is that these days there are more avenues to explore and more tools at your disposal in terms of setting up your business. The internet is awash with resources that can aid you in your quest to get your business up and running; from social media accounts to create brand awareness to no-code website builders that you can use to create your own website, everything is there at the click of a mouse. However, no small business can come into fruition without funding and sometimes finding that funding can prove challenging, but fret not would-be business owner, here are some funding options you can look into.
Family & friends
An effective way to raise those much-needed start-up funds would be to call upon family and friends. However, it’s also important to remember that despite the generosity of those close to you, there are risks. Conventional wisdom decrees if money problems arise between you and those close to you, it can throw a serious spanner into your personal relationships, and while your friends might be some of your biggest supporters, rather opt not to take any money from them if they cannot actually afford to part with it.
When it comes to investors, you can look to venture capitalists or angel investors. With regards to venture capitalists, it’s important to research their portfolios to get an idea of the type of success they’ve had in the past and if they’ve had experience with businesses similar to your own. Alternatively, you could approach angel investors, wealthy individuals keen to invest in a small business that’s still in its infancy. Most of the time angel investors have themselves launched successful business. You could approach a single investor or you could pitch your idea to an angel investment network, kind of like Dragon’s Den, minus the nerves of course.
In the last 10+ years online trading has gained quite a foothold in terms of accessibility and thus popularity. In the past share trading was a rich man’s game but nowadays there are numerous online brokers who will facilitate your trading aspirations. Now it needs to be noted that trading is not for everyone, but if you can prove to be successful at it, it can provide that much needed capital. If you’d like to become one of those investors interested in share trading, then the first thing you should do is sign up with a regulated broker and use a demo account. This will let you get a feel for things and it won’t cost you a cent. It’s also advisable that you read up on the subject as much as possible and maybe even follow a few social media accounts of successful traders as they often share knowledge on such accounts.
Get a small business grant
The UK has a number of start-up business grants catering to a various fields of innovation ranging from technology to the arts and everything in-between. Organisations like Innovate UK provide financial backing to start-ups working on novel concepts with commercial potential. This organisation also holds regular competitions to award funding to start-ups who’ve come up with truly game-changing ideas. Competition is rife, but who knows? Maybe your small business idea is just the thing they’d like to sponsor next?