Posted: Fri 3rd Jan 2020
A lack of funding is one of the biggest barriers to getting your start-up idea off the ground. But that doesn't have to be the case.
Whether you want to start or grow a business in 2020, there are a wealth of funding options available. This post lists the key sources of funding and how they work, so you can figure out what's right for your business.
Are you considering raising money for your business but don't know where to start? A growing business, when supported by a convincing business plan, should have a choice of financing options.
He will discuss:
Should money be raised by share capital, loans or an overdraft?
What is the correct gearing level? This is the relationship between the capital contributed by the owners and the amount of money borrowed.
Tips and next steps
Huggg has raised several rounds of funding; first from angel investors and then from venture capitalists. How does Paul advise you should find investors?
"Make a list of all the investors you want to reach, take the ones you really want to get money from and ask them last. Your early ones are your burners. You'll screw it up in front of the 10 you don't money from so you do really well in front of the 10 you do want money from."
But he advises founders to not let a lack of money hold you back.
"Many people think 'I can't do X-Y-Z next step because I haven't raised any money', but there's almost always something you can do without money or on very low money. Don't let it be the barrier."
Go to step eight: [How to hire a winning team