Starting a business is tough.
The hardest part? Finding the money to get it off the ground.
But funding is out there… if you know where to look. Whether you’re in Swadlincote or across the East Midlands, we’ve got the links to the local resources you need to make it happen.
How much funding do you really need?
Before seeking funds, figure out exactly how much you need.
List all your start-up costs: equipment, stock, rent, salaries, marketing, etc. Don’t overlook hidden costs like insurance or legal fees.
You’ll also need a buffer for unexpected expenses.
Add everything up and write that figure down.
Once you have that totalled-up number, you’ll know what to ask for.
Staying realistic is essential. Overshooting or undershooting could cause problems down the line, never mind in the immediate stages.
What funding is there for your new Swadlincote business?
Now that you know how much you need, let’s look at the funding options available.
Decide which option works best for your business. Often, a combination of these methods will work in your favour. Here’s what you need to know:
Bank loans
Bank loans are the traditional option. They offer predictable terms, but you’ll need a solid business plan and financial forecasts to even be allowed through the door.
Banks want assurance that you can repay the loan and may ask for collateral. But the debt is yours to manage.
Government grants
Government grants are a great way to secure funding without paying it back.
You don’t have to dig too deep before you find many schemes at national and regional level.
In the East Midlands, you’ve got options like the D2N2 Growth Hub, which regularly lists funding opportunities for businesses in Derbyshire and Nottinghamshire. (Find the Swadlincote Innovation Centre via this link). South Derbyshire County Council also offers specific local grants.
East Midlands Chamber also provides information on available grants and funding. It regularly updates businesses on new funding opportunities through events and online resources.
The more you look, the more you uncover small business loans, innovation grants and support schemes. Explore all of these and decide whether they’re appropriate for your start-up.
Crowdfunding
Crowdfunding allows you to raise small amounts from many people for a large total.
You don’t give up equity or take on debt, but it can take time.
It all starts with a strong marketing strategy. Otherwise, nobody will want to back your project.
Check out platforms like Kickstarter and GoFundMe to see if these are good paths for your business plan.
Angel investors
Angel investors invest their own money in exchange for equity in your business. They often bring more than just money – their experience and networks can help you grow.
But you’ll need to be prepared to give up some control over your business. Ensure you’re comfortable with this before you proceed.
How to apply for funding: what do investors want?
Preparation is key.
First, you’ll need a solid business plan. It should explain your business, how it works, your target audience, and your growth strategy. Keep it simple but clear. You need to show why your business will succeed. Remember: this is as much for you as for your investors.
Investors and lenders want to know how you’ll make money. Provide accurate cash flow forecasts, profit margins and sales projections. Make sure your numbers align with your business model. We can help you with this.
Your pitch should be short and direct. Focus on your business’s potential and how much funding you need. Make sure you can explain how the money will help your business grow per your business plan.
A solid funding strategy usually relies on more than one source. We strongly recommend using a combination. That way, it isn’t game over if the money dries up from one source. Spreading the risk keeps your business flexible.
For instance, you could take out a small bank loan for operational costs, apply for a grant to fund a specific project and use crowdfunding to help with product launches. Each source of funding brings something different to the table.
How Buckler Spencer can help your new Swadlincote business
Business funding doesn’t have to be an unsolvable enigma.
Start by understanding exactly what you need. Explore the funding options available, including local opportunities from the D2N2 Growth Hub or South Derbyshire County Council.
Prepare your business plan and financials, and pitch confidently. Fake it until you make it, as they say.
With the right approach, you’ll be able to secure the funds you need.
Ready to explore your funding options?
Get in touch with Bucker Spencer. When it comes to business start-up strategy, we’ve seen it all. We’re here to help you create a funding plan that works for your business.