I’m currently studying at a music college at degree level. Next year, I aim to start my own teaching business. Can you give me some information regarding funding and creating a business plan?
A business plan is not just a document to present to prospective funders to raise money – it is also a roadmap for running your business. Planning and researching are crucial activities before starting in business. You need to ensure that people will pay for the product or service that you intend to provide. Do not assume that just because your family and friends say they like it that others will pay good money for it.
Once you are happy that a market exists then you must plan the activities that you need to do to bring your plans to reality. This will include calculating your funding needs for equipment, materials, premises, advertising and so on, how you will market yourself, how you will make or deliver your end product or service, any staff you may need to employ. You can find more information about writing an effective business plan on the Business Link website.
There are a number of different sources to consider for funding. Any lender will expect you to be able to contribute a reasonable amount of cash to the project, so often family and friends are worth talking to. They know you, have a good sense of your ability and may be prepared to wait for repayment if things do not go exactly according to plan. For more information on grants visit the Business Link website.
See also: Is your business plan a winner?