Funding support for start-ups


Before you approach anyone for external finance when you’re starting up, you should explore the right funding options for your business needs.

You should think about how much finance you need and for how long. Even if you've already sorted extra finance from investors or banks for example, you'll usually still have to pay for something. Nearly everyone who starts a new business will have to use some of their own money.

How much money do you need to start?

Money is vital for a new business. To start a new business, you'll need enough money to cover both the start-up and early stages, at least until it provides an income.

You should find out how much money you'll need from your business by making a personal financial forecast. This covers living expenses and should provide a realistic figure of how much you need in the first year.

A personal budget is a plan detailing the personal living expenses you’ll need to fund from the business or other sources. It should set limits to the amount you plan to spend each month on items like rent, food and housekeeping.

Tracking your personal spending can help you find out how much money you’ll need to take from the business.

Download our personal budget spreadsheet (XLS, 25K)

You can now work out how much money you will need each month. If you multiply the monthly figure by 12, and make adjustments to cover one-off spending such as holidays or car tax, you will know how much you need to live on during your first year of trading.

Profit and loss forecast

You can also estimate potential profit for a new business using a profit and loss forecast. Profit is the difference between the money your business earns and what it pays out. A profit and loss forecast is a statement of the trading position of your business: the level of profit you expect to make, given your projected sales and the costs of providing goods and services and your overheads.

Your forecasts should cover a range of scenarios. New businesses often forecast over-optimistic sales and most external readers will take this into account. It’s worth including additional forecasts based on sales being significantly slower than you are actually predicting, with one for sales starting three months later than expected, and another forecasting a 20 per cent lower level of sales.

Download our sample profit and loss forecast template (XLS, 50K)

You can also focus on managing cashflow. Cashflow covers payments of money, like wages and for stock, and is essential for a business to continue trading.

Explore your finance options when starting up

Banks might be first place you'll consider for finance. But they're not the only source of finance for businesses.

Before you approach anyone about business financing, you need to know the answers to three vital questions:

  • Why do you need the money?
  • How much money do you need?
  • When do you need it?
Creating a business plan should help answer all of these questions and is an essential part of the process. It will help you to plan how much money you need. You can then use it to help persuade a lender or investor to offer finance.

To be able to secure any type of business finance, you’ll often need a good credit history, although there are options available if you don't have this.

All businesses will have different funding needs and those needs will be different at different times of your business' life. You might need a combination of options as your business develops and your needs change over time. You need to try to find the finance route that's best for your needs, your type of business and with the fewest disadvantages.

Financing your business

Finance options to consider include:
  • Grants
  • Overdrafts
  • Loans
  • Non-bank lenders
  • Financing from family and friends
  • Business angels
  • Venture capital
  • Factoring and invoice discounting
  • Leasing

Use your own money to get started

Nearly everyone who starts a new business will have to use some of their own money. Even if you've already sorted extra finance from investors or banks, you'll usually still have to pay for something.

Benefits to funding your own business:

  • gives you more control over your finances and business
  • less worries over repaying money
  • it can make your business more attractive to future investors - it shows your commitment to making the business succeed
Disadvantages to funding your own business:
  • potentially high losses eg your house and other personal possessions
  • potential to get into financial difficulty by spending more than you realistically have
There are pros and cons to every potential source of funding. When making funding choice you should always have a realistic and accurate business plan which includes a cashflow forecast.

See our guide on cashflow management.

Options for self-financing your business

The easiest way to self-finance your business is through your savings. A common mistake though is to put every penny you have into the business with nothing in contingency for a bad month. You should consider keeping a contingency fund back to cover 6 months worth of expenses.

You could also consider:
  • working part-time
  • applying for additional borrowing on a mortgage
  • financing from family and friends
  • taking out a loan or using a credit card
  • using a windfall payment - eg redundancy, inheritance or maturing ISA
  • cashing in premium or investment bonds or selling shares in another business
  • selling personal assets – eg car, property or jewellery

Did you know...
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2 results found 
Yorkshire businesses get behind £10k fundraising campaign

Tuesday 04 April 2017

As preparations for the charity football initiative ‘The Match 2017’ continue to gain momentum, the latest supporters to get on board are Huddersfield-based businesses Magic Rock Brewing and Lindley Financial Management. The inaugural event, which will take place on Saturday 20th May at The MBI Shay Stadium in Halifax, will bring together footballing amateurs and Huddersfield Town legends, in a game that will help to raise much needed funds for Yorkshire Air Ambulance. Both firms have dug deep for the cause, and have each donated £500 in return for becoming an official shirt sponsor. With a running cost of £12,000 per day for the two yellow helicopters to remain active, the organisation relies entirely on donations to continue saving lives. And now further support is required to keep The Match proceeds growing, and help this initiative reach its £10,000 target. Magic Rock Brewing was founded by brothers Richard and Jonny Burhouse and inspired by brewing traditions and the US craft beer scene in particular. The award-winning and ever-growing company produces an innovative range of idiosyncratic beers in their 4,000sqft Tap Room, close to the town centre. When approached via social media and asked to get behind The Match, Richard says there was never any doubt about getting involved: “We are a community focused business, keen to support local initiatives wherever possible. We are aware of the excellent work the air ambulance does for the region, and wanted to do our bit.” Regular charity supporters Lindley Financial Management also had no qualms about signing up to help the event. The independent financial advisers, based in Brighouse, also support Pilgrim Bandits Charity, aiding soldier amputees injured in Iraq and Afghanistan. Commenting on The Match, director Mark Learmont, said: “I hope as many people as possible attend on May 20th. Nobody knows when they may need the help of the Yorkshire Air Ambulance – supporting them is vital and their services must be applauded.” Organiser, and founder of grassroots football specialists Coaches Club, Dave Learmont, adds: “I am so thankful that two local businesses have gone the extra mile to raise awareness and proceeds for this fantastic charity. 100% of all funds donated will go to Yorkshire Air Ambulance, and these shirt sponsorships put us well on our way to hitting our huge target.” But the search for sponsors isn’t over, with the players themselves now looking for individual support. For only £150, companies will secure their name and details on the official match website, alongside their logo on the programme. The players and Town legends are also appealing for members of the public to get on board and buy tickets. Available at £10 for adults and £5 for children, the aim is to provide a fun, low cost day out for all the family. Pre-match and half-time entertainment – as well as a couple of extra special guests – will be revealed over the coming weeks. All tickets must be purchased before the game, via justgiving.com/teams/coaches-club. Further information and updates about The Match and player sponsorship can be found at The Coaches Club website, and on Twitter @cccmatch.
Posted by Scriba PR
Vizulate becomes Approved Supplier on Digital Enterprise scheme

Friday 10 March 2017

Vizulate Digital is delighted to announce that we have been named as an approved supplier on the Leeds City Region Digital Enterprise scheme, which allows eligible small and medium sized businesses across Yorkshire to ‘Invest in Digital’. Running until March 2019, the Digital Enterprise scheme aims to support the growth and development of SMEs in the region through investment in digital skills and technology. Eligible businesses will be able to apply for 40% funding towards the cost of digital projects including digital marketing, social media, web design and development, e-commerce and more – up to a maximum of £5,000. The Digital Growth Vouchers could also fund part of the cost of technology upgrades such as IT and telecoms and, if approved, the business will then only have to cover the remaining 60% of the cost. The Digital Enterprise scheme is a partnership programme which is partly funded by the European Union (European Regional Development Fund), the West Yorkshire Combined Authority/Leeds city region Local Enterprise Partnership (LEP) and the 9 local authorities which form part of the Leeds city region – Leeds, Calderdale, Kirklees, Bradford, Selby, Craven, Harrogate, York and Wakefield. As approved suppliers on the Digital Enterprise scheme with over 10 years’ experience we are able to offer the full range of digital services including: Website Design & Development E-Commerce Digital Marketing Social Media Search Engine Optimisation (SEO) Online Advertising (Google AdWords, Facebook Ads etc.) Video & Animation Integrated Digital Solutions Web Hosting & Email Through our trusted partners we can also provide IT and telecoms solutions. We believe digital marketing represents the single biggest opportunity for businesses to achieve growth.
Posted by Vizulate Digital
2 results found 

Events Posted

2 results found 
Image for
Facebook Advertising Workshop
Thursday 27 April 2017, 09:30 - 12:30
Bridge House, 2 Woodhead Road, Holmfirth, HD9 6PX
£65 - 6 places
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Business Hub Live - Innovation and Research & Development
Wednesday 24 May 2017, 08:30 - 10:30
Firth Street, Huddersfield, HD1 3BD
Free Entry - 50 places
2 results found 
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