smallbusiness.co.uk: Helping your business think big

A promising venture

Previously, we’ve looked at the reasons why many describe the...
Have your say »

RSS

Finding start-up finance

Mar 07 2006

in association with Abbey

This can be a crucial factor in determining whether your idea will see the light of day. Work out what money your business needs to start up. It’s very easy to forget about some costs related to running a business and they all add up. Below are some costs you may need to think about:

Electric, water, gas
Vehicle insurance, fuel, tax, loan repayments
Business rates
Specialist advice ie. Accountant, Solicitor
Computer, printer, fax, telephone, stationery
Additional insurances ie. property, public liability
Marketing

Work out how much you need

Work on a budget showing your sales forecast and expenditure. This should also give you an indication of cashflow.
When will you need additional finance?
Will your business operate in a market with peaks and troughs?
Plan for the total amount you may need to borrow even if you don’t end up needing it all. Work on a worst case scenario.

There are a number of ways this finance can be raised. Examples include finance through a bank, equity from property or even a loan from family or friends.

Tip: Don’t forget to look into grants. Log on to www.abbey.com/businessand check out our FREE grantfinder within business advice. Search across thousands of grants from starting-up and business development to training

Comments

There are currently no comments on this article

Natwest fixed rate business loan for small businesses

At NatWest, we’re committed to backing British business. That’s why we’re giving small businesses the opportunity to borrow from £25,001 up to £250,000 fee-free, until 5 February 2012. Find out what our Fixed Rate Business Loan gives you today.

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

A business credit card with 0% interest on purchases for 3 months*

That’s on top of up to 56 days of interest-free credit**. When it comes to supporting your cashflow, it all adds up to a lot of extra breathing space. Also, by separating your business and personal spend it helps you keep track of your costs and identify areas where you can save money. Find out more today. *From date of account opening. **When you pay off your balance in full and on time each month.

Polls

Latest Guides and Tips

Bank loans for small businesses

Banks are beginning to post healthy profits again, but SMEs say they are still being hit hard by lending terms. Here we speak to entrepreneurs, analysts and bankers to find out the reality of credit conditions.

Claim Back Mis-Sold Loan Protection

Have you taken out a loan or a credit card in the last 10 years? If so, you may have been mis-sold loan insurance, and could claim compensation for this.

Banking on assistance

Many businesses are still having no luck in obtaining bank loans.

Getting financing from banks

SmallBusiness.co.uk presents the dos and don'ts of approaching banks for funding.

Bank lending: small change for SMEs

Lending to businesses has hit an all-time low, which the banks are claiming is due to a lack of demand. Here we speak to experts and entrepreneurs to get the full story

Are banks backing your business?

SMEs tell us how the banking situation is affecting them

No guarantee of funding with the SFLG

The likes of The Body Shop and Waterstone’s used funding through the Small Firms Loan Guarantee (SFLG) scheme to get off the ground. But with banks now so reluctant to lend, some believe it’s time for an overhaul

Loans scheme for start-ups falls flat

Last month the government launched a finance package to help struggling small businesses access bank loans, but SMEs say they aren’t seeing the benefits.

Refinance your business

Refinancing, if successful, can transform a company, not only by providing the funds it needs on terms which are not going to choke it, but also by opening a relationship with sources of support, expertise and useful contacts.

Banking on a loan

If you’re looking to fund rapid growth, your bank will probably be the first port of call. SmallBusiness.co.uk finds out what traditional lenders can offer, and how to make sure you’re getting the best deal

How to get a business loan

Take a very close look at the amount of money you think you will need. Know exactly how much money you need to raise, as you have to be able to justify every penny to a lender. Approaching a bank with the attitude of ‘how much can you give me?’ will not inspire confidence.

News

Venture funds to assist in credit easing support?

Fund managers should be given a role to play alongside the high street banks in delivering the government’s £40 billion credit easing scheme support, says venture capital firm EV.

The FSB is hoping for increased competition in the banking sector

FSB calls for increased competition in banking

The Federation of Small Businesses is urging the government to consider competition in the banking sector in its response to the ICB's final report next week.

RBS looks to boost small business lending

RBS in bid to boost lending

The Royal Bank of Scotland has said it will aim to boost small business lending by at least 15 percent in three months as part of a drive to get behind the economic recovery.

Don't Miss

Choosing the right financial investments

Get investing

When cash savings rates are low, some people start thinking about putting their money into investments and there are plenty to choose from.

Loans scheme for start-ups falls flat

Last month the government launched a finance package to help struggling small businesses access bank loans, but SMEs say they aren’t seeing the benefits.

Your first business loan

If your business plan and financial forecasts are sound, you may be feeling brave enough to approach a bank for funding.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.