As a young person starting their own business, it is often hard to find the right funding that suits your particular situation. Even with a growing business, finding proper funding and help is a tricky task to do.
Berley believes in helping entrepreneurs with their finances – that includes providing options and advice unique to you. The right accountant doesn’t just sit back and do the bare minimum, they give the best advice for your business to help it succeed.
Personal savings and ‘Love money’
Most young startup entrepreneurs turn to their own personal savings as a means to acquire funding for their business. To get this money, they sometimes sell their old possessions or save the money they get paid from a job they already have or (if they haven’t started up their business yet). Another way many entrepreneurs get funding – particularly the young demographics – turn to their parents or other family members for the capital to start their business. This is known as love money. It is important to keep in mind that family and friends may not have as much disposable income as you want so you shouldn’t rely too heavily on them.
Government grant schemes
When trying to grow your business, it is common to turn to the government for a grant. A government grant is a sum of money awarded to your business for a development / expansion purposes for a particular reason. The great thing about grants is that you don’t have to pay them back. However, applying for a grant isn’t an easy process, it can be quite time consuming and does come with certain conditions you have to adhere to. We’ve become familiar with many different grant schemes over the years, due to the fact Berley is a team of accountants who work with small businesses and entrepreneurs. Together, we’ll discuss the best grant scheme options available to you and if it is right for you.
Crowdfunding is a funding source that is rapidly growing in popularity. These crowdfunding platforms allow creators or business starters to gain access to the thousands of potential investors there are in the world. Of course, as with every funding option, crowdfunding has both its pros and cons. Crowdfunding is a fast way to raise funds without any upfront fees and is a great alternative if you’ve been struggling to get a grant or a loan. However, it is important to note that if you don’t reach your target, the money is then returned to the investors and you won’t receive anything.
Loans can be a great choice for an entrepreneur but you need to know that you have to pay it back that loan and that means having financial success for your business. Loans are really helpful sources of funding as they can be used for any purpose and they provide short-, mid- or long-term financing for your business. Getting a loan isn’t as simple as going to your local bank and asking politely. Before applying for a loan, certain important things are required like a business plan, a specific reason for why you need a loan, a good credit score and more. Our team will give you advice on how to be successful with getting a loan and if it is a viable option for your business startup or growth.
Business funding advice isn’t a ‘one-size-fits-all’ kind of thing. Berley believe in supporting entrepreneurs and giving them the best advice that is bespoke to their business. Getting the right source of funding is key to making your business a success financially. Call us on 020 7637 9094 to arrange a meeting to discuss your business idea and we’ll talk through what option works best for you. Keep in mind that just because you have an idea, it doesn’t mean it’s 100% guaranteed to work. However, a second opinion from experienced entrepreneurs is always a good thing to hear and take on board because it will help guide you towards success.