Starting a business is something that many people dream of, but don’t have the finances to start their own small business. Small businesses are growing in number and becoming something that is more or less easy to set up. Nowadays, you can start a small business from the office room in your home. Many small businesses that are based online don’t even require you to meet the client.
It is easier for those who already have money waiting in the bank or entrepreneur parents ready to lend a helping hand. However, with the industry getting seemingly more and more competitive, it can be a challenge to stand out from the crowd.
Here are some simple ways you can get finances to fund your business start up in the UK.
Tap Into Your Savings
If you are not employed and considering beginning your own business, those funds you have accumulated in your bank account over the years will look pretty tempting. And because of provisions within the tax code, you truly can tap into them without penalty if you follow the proper steps.
The steps are easy enough, however lawfully complicated; therefore you will need somebody with expertise in putting in place a brand new corporation and therefore the appropriate pension plan to roll your retirement assets into. Bear in mind that you are investing your retirement funds, which suggests if things do not pan out, not only can you lose your business, but you can lose your nest egg, too.
Get A Loan
Get A Loan
Lending standards have gotten a lot more stricter; however banks like Santander and Halifax have earmarked extra funds for small business lending. So why not apply?
Use A Credit Card
Using a credit card to fund your business is serious risky business. Fall behind on your payment and your credit score gets destroyed. Pay only the minimum every month and you may produce a hole you will never get out of. However, used responsibly, a credit card will get you out of the occasional jam and even extend your accounts payable period to sustain your income.
Try Crowd Funding
Try Crowd Funding
A crowd funding website like Kickstarter.com or Gofundme.com may be a fun and effective method to raise money for a comparatively low price, artistic project. You can set a goal for how much money you need to raise over a certain period of time, say, £1,500 over 40 days. Your friends, family, and strangers then use the website to pledge money.
Kickstarter has funded roughly 1,000 projects, from rock albums to documentary films since its launch last year. However keep in mind, this is not regarding long-term funding. Rather, it's meant to facilitate the requesting and giving of support for single, one-off ideas. Usually, project-creators supply incentives for pledging, like if you offer an author £15, you will get a book for free in return. There isn't any long-run return on investment for supporters and not even the flexibility to write off donations for tax purposes. Still, that hasn't stopped near 100,000 individuals from pledging to Kickstarter projects.