Can I Start a Business With No Money?
The startup process doesn’t have to break the bank. Before launching ahead with an idea, it’s vital that you conduct thorough research into it.
Whilst looking into your idea, it’s important to check firstly that someone hasn’t beaten you to it, as well as validating that there is a long-term need for the business. On top of this, preliminary research can also help you to identify your target audience, how large it is, how to attract customers from this group, as well as whether you can expand it.
This process can be an incredibly cost-effective part to starting up your business, only requiring access to the internet, as well as an electronic device (which let’s face it, in this digital-centric world, most people will probably already own).
After this, you can apply for funding to help fuel your business venture. There are a range of different funding options to explore for your startup. One of the more traditional options available is a business loan from a bank – however, with this type of finance, it’s important not to borrow excessive amounts as you could end up struggling with debt.
What Funding Options Are There for Small Businesses?
Whilst the idea for your business is an integral part to starting up, without the right support from the most appropriate funding method, the longevity of your startup could be compromised significantly. Thankfully, there’s a whole host of different funding options out there for businesses, including the following:
Crowdfunding – this is a method of raising finance whereby a number of people are asked to chip in what they can. Whilst the sums of money chipped in may be small, due to the sheer volume of people contributing, the total amount raised can come to a considerable amount.
Venture Capital Funding – this is a type of funding is done, as the name suggests, through venture capital. This is a form of private equity, and is used by investors to fund startups, as well as small businesses, that the investors deem to hold potential for long-term growth.
Invoice Finance – through this method of finance, businesses can borrow based off what is owed to them by clients/customers, measured by outstanding invoices. Some businesses can be waiting for their invoices to get paid for up to 90 days. Invoice finance helps to provide funds to the company based off the amount they are waiting to receive from their outstanding invoices. It is worth noting that with this method, the company is only borrowing the money from the lenders, which will need to be paid back in due course.
These are only some of the many different finance options available for U.K. startups and small businesses. To find out more about the funding that could be available to your startup, why not read our guide.
What Is a Business Grant and How Does It Work?
In simple terms, a business grant is a certain sum of money that is offered to a business to help them further along their operations. Unlike a lot of other types of business funding, business grants do not have to be repaid, meaning they’re great fuel for startups wanting to accelerate their growth and development.
Grants are usually given out by foundations, trusts, corporations or the government. In order to be eligible for grants, your business will have to fit certain eligibility criteria. This will be dependent on the grant and why it is being offered. For example, some grants are offered exclusively for budding young entrepreneurs within a certain age category, whilst others are available for businesses that benefit the community, are focused on green energy and resources, or otherwise.