Five creative ways to secure funding for your small business
Helping entrepreneurs access the investment needed to scale, Rob Straathof, CEO at Liberis, shares five experts tips on how to secure funding for your small business.
For many small businesses wishing to grow, knowing where to find and secure the right financing can be overwhelming.
Our own research revealed that over 60%of UK SMEs said they require funding to grow, but 57%of these were unsure how to source and secure that all important finance.
While there are a number of financing options available, the path to actually securing investment is not always straightforward. Finding the right option and then having the right tools to secure it takes a lot of work even for the most seasoned entrepreneur.
Strengthen your position
Before you’re ready to reach out and source funding, it’s important to be realistic about your business? position and your existing cashflow. Small businesses are dynamic, so make sure to constantly revisit your budget and refresh it regularly so you can ensure you’re working from accurate figures.
Authenticity and clarity are key so make sure, you have all the relevant credentials in place. Take stock of your current income, your expenses, overheads and record it all in a profit and loss statement.
It is important to also have this ready for the money you don’t have yet as thoroughly scoping your need for funding and the required cost will play an important part in defining a provider.
thoroughly scoping your need for funding and the required cost will play an important part in defining a provider.
Investors often look to support the most innovative businesses so it’s important to get noticed.
Make the most of small business events and networking opportunities they’re everywhere. Just grab your business cards, questions and friendly introductions to get started.
Use social media channels, such as Twitter or Facebook, to build your network and help establish your brand. Research similar companies online and find out what they’re talking about, who they’re engaging with and what events they might be attending.
it’s easy to get carried away though so use your time wisely, you don’t need to go to every event you’re invited to, do your research and be strategic.
Get involved with your business community, whether it be local or industry based, and share your knowledge. Ask for as much advice as possible and learn from others? experience: which providers worked for them and which didnt; what key questions should you be asking your suppliers; and who caters best for your business type.
This insight will be key when reaching out for funding.
Your credit score
Funding providers will use a credit bureau to look at your credit score when applying for business finance.
No matter how game-changing your idea is, or how much money it stands to make, without cash reserves or an extremely lean business model, youll need money and that means youll need to court and impress investors. more»