Small Business Saturday Blog

Starting a new business: financial tips for start ups

Tuesday, December 17 at 00:30

Starting a business is an exciting prospect. It gives you freedom, a sense of purpose and the chance to follow your passion. You might even make some money along the way. But giving up the safety and security of a 9 to 5 job isn’t always easy and there will be many challenges to overcome.
As Managing Director of Start Up Loans, I have the privilege of meeting entrepreneurs up and down the country who have taken the plunge and used the funding and mentoring we provide to set up their own business. While they’re all unique, they’re united in their determination, self-belief and ambition.
Here are my top tips for success:
A solid business plan
This may seem obvious, but it’s important to have a clear, realistic and sensible business plan that provides all the relevant information that a potential lender needs to gauge the prospects of the business. The plan should include business objectives, a strategy for reaching these objectives, potential roadblocks and market opportunities.
Through our network of Delivery Partners, Start Up Loans provides support with your loan application to help you to get your business plan and cash-flow forecasts into good shape. If you’re unsure how to structure your plan, Start Up Loans can help. You’ll find downloadable business plan templates and other helpful documents on our website.
Affordable funding
Raising or sourcing affordable finance is often a challenge when starting a business. Commercial lenders generally consider start-ups to be too risky and, as a result, don’t serve this part of the market well. Aspiring business owners often use their own resources and savings – or those of family, friends or close associates – in order to get their business up and running.
But don’t be deterred. There are alternative sources of funding specifically designed for people wanting to start their own business – such as Start Up Loans, which is part of the British Business Bank. The Government-backed programme exists to support and empower small business owners across the UK, by providing fixed-interest loans of £500 to £25,000. Since 2012, it has lent over £542 million through 67,862 loans.
Mentoring: getting the right advice
A mentor is key, whether it’s a family friend who has started a business, or a professional adviser introduced through a third party. Mentors can provide insight and perspective that a business owner may not be able to see themselves. Start Up Loans places great emphasis on mentoring and support, and once an applicant has received a Start Up Loan, they have access to a free expert business mentor for 12 months. More than seven in 10 of our loan recipients have told us that the mentoring they have received from Start Up Loans had a positive impact on their business.
Richard Bearman is Managing Director of Start Up Loans.

Interested in writing a Blog Post for Small Business Saturday? Here are our guidelines.

Categories:

Latest Posts: