One of the misconceptions of starting a business is that there are banks and venture capitalists just vying to invest in your business. The reality is that funding isn’t always available for every type of business, and the need to self-finance your start-up is a common reality. If you’ve exhausted your own finances, then try family and friends, but ultimately you have to generate sales to re-invest in your business.
If you don’t achieve sales, then your business is non-sustainable and hardly attractive to prospective investors. Once you’ve shown that your business is viable, your chances for loans, grants and other funding will be so much higher.
Where Can I Look?
Here are a few ideas to explore. Don’t forget that you will need a robust business plan in place. Please see my previous article for more information on how to put a business plan together, and what support is available to help you with that task.
So far 8000 loans and over £45 million in advances made, it is worth exploring this site in more depth. With a view to encouraging entrepreneurship, throughout Wales, this scheme partners five delivery partners across Wales, who can offer expertise in running local enterprise schemes.
Following registration, your plan will be considered for funding and a Delivery Partner will be assigned, who will provide a mentor to work with you to decide how best to proceed.
The Centre for Business offers a low-cost loan on repayment terms up to five years. The timescale will give you a good chance of getting up-and-running and a couple years of profit behind you. A bonus is the appointment of a mentor for the duration of the loan. You’ll need to check whether or not you meet the eligibility criteria, which focuses upon locations throughout South Wales.
Finance Wales helps Welsh SMEs by offering tailored start-up and early stage finance, by offering micro-loans from £1,000 to £50,000. They also offer commercial investment for more established businesses.
Currently, Finance Wales can back new Welsh businesses targeting businesses (B2B) and consumers (B2C) with start-up and early stage investment. The uses include, starting the business, financing the early years and innovating the business, depending on need and growth plans. Check out the website for details of their most recent investments.
Also check out the bursaries and start-up funding for graduates and young entrepreneurs on the website below:
Finance Tool Locator
If you are looking for what current funding and grants are available based on a detailed search, you can use the Business Wales finance locator tool above. Not just for start-ups, this is updated regularly.
The website is: http://gov.wales/funding/grants/?lang=en
Hopefully there will be some suitable options for consideration and we’ll add more to the list as we progress.