Raising finance for a small business start-up

[bigcometobedeyes]

Is anyone going through this or been through it?

Tips welcome about how to go about this generally:

How many did you apply for?
All grants or bank loans?
Anyone negotiate credit with suppliers?
Did you still start with very little?

Thanks

Go to your local library and ask the information desk for a leaflet about what advice is available to would-be entrepreneurs. You may find they refer you to Business Link (which is the Government's Small Business Service) or to a locally-run organisation eg an arm of the council or your regional development agency. These sorts of organisations often put on workshops or see people at drop-ins (eg at the library, at the community centre).

I saw just such a leaflet on the counter at my own local library last week.

HTH, MrsBaldwin

I meant to add that at these sorts of workshops and drop-ins you can find out what sort of start-up grants are available locally and get advice on how to apply for bank loans etc.

Ah - I just took a quick look at your other thread. You've done all this sort of thing already. Very good.

I started very small and used the returns to buy more products etc.., never used bank loans but got a £500 matching grant from Business link for developing my website.

I also found FSB very good, saves a lot when setting up online payments plus 24 hour free legal helpline.

In the past I've found grants available for new design and production of letterheads/stationery etc. Computerising my accounts system. But that was a number of years ago and in Scotland - not sure what there is out there now.

I guess it depends on how much you are looking for and how much interest you are willing to pay.

But you could remortgage/bank loan/family loans/0% credit cards or savings.

Thanks everyone - I 'gave it all a rest yesterday'

I have been to business link and the Black Country Chamber have told me there is a start up grant available to apply for. Its just I was planning to do what VINO has done I am starting with £300 and have smaller monthly amounts (£100 to £200) to help buy more stock and build myself up this way.

I feel a bit daunted by applying for the start up grant as you have to commit to saying you will turnover enough to become registered for VAT (67K) within 18 months - this means setting sales targets far higher than I anticipate I still teach two days a week and look after my DS (3) the rest of the time - this was supposed to be soemthing I could fit around these. If I apply I then become accountable to these. £1000 would be enough to allow me to buy in a wider range of products and set up my website - which i have a price of £250 for from a friend.

I am apprehensive about taking on too much too soon. I do aspire to leasing a shop and selling online nationally but in a steady way.

Do you think I would be silly to not apply or will there be others? Opportunties missed ?

Go slow is my advice (dont run before you can walk), there will be more grants available, make sure you get an account manager within Bus Link and sign up for their newsletters and though that you'll find out re other grants.

I dont know what you sell but £67K is a lot of sales if they are small items. My first year I turned over £18K, then doubled every year after but i decided not to go for the VAT threshold for the first 4 years of trading and slowed down the sales if I was near.

I registered for VAT/ registered as a LTD company plus had a new website developed plus got a bookkeeper and of course an accountant for the companies house side of things, then sold after 18 months (personal circumstances).

Am in a bit of a rush but if there is anything else you'd like to know do let me know

Oh thanks VINO - I feel reassured that my apprehension was correct and I am pleased i havn't let myself get carried away! I would have to sell 150 unit per week after trading for 12 months!

I am also reasired by your steady growth. I just want to be able to work for myself and earn enought to pay for the little extras like holidays.

I am inspired by your story. I am now giving myself permission to relax and enjoy getting my product lines right before I order stock. There is something attractive about being completely independent.

thanks

BCTBE - I don't sell retail products like you will. But I would say 'don't take a loan unless you really need to'. As VE says, there'll be money available in the future. And to go from nothing to £67K in 18 months is a lot of pressure if you have other things to do as well (which you do).

IMO, in finance terms it's one thing to be a big bucks millionaire-type start-up with backing from private equity etc (a la lastminute.com or Ultimo Bras) and another to set up doing what you want to do. I don't mean it's any less serious or important an endeavour - and actually you'll probably find you go into profit quicker, maybe even with better margins - just that if you can do it without external 'pressurised' borrowing (and the attendant costs of that) so much the better.

Thanks MrsB - Loans are definately out this includes an overdraft. I have just been paid from my P/T job and plan to put my monthyl allowance in this month - its not massive but enough to buy more stock.

I just wanted to know if people constantly chased these grants and is it worth it. From reading replies I think if i can do it without the hassel by being more patient it is much better - I just so want my website up and running!