WHERE LOCAL BUSINESS GROWS

Financing from family and friends



Overview
 

You may want to ask relatives and friends for support when you need additional business funding.

This can work well, but often arrangements with family and friends are informal and based purely on trust and verbal assurances. Any confusion about the agreement could damage personal relationships, so it is important that both parties are clear about what any investment will involve. Think about whether you need a loan (for immediate, short-term funds) or want to take on an investor (for longer term or permanent funding).

The process
 

If you decide to accept a loan or investment from friends or family, you should approach it as if it were a formal finance deal.

This will involve:

  • presenting your business plan
  • preparing a business case
  • taking professional advice
  • creating a formal, written agreement
Before approaching a friend or family member, you should create or revise your business plan so you can demonstrate your plans for the business and their investment in it. Make your proposal with the same considerations as you would for any formal lender or investor. The friend or relative will need to know how their money will be used and the bigger picture for your business. Make them aware of all risks and worst-case scenarios.

You need to make a business case that will persuade them to finance your business instead of their own personal plans.

Sources of help

You should both get professional advice if the amounts involved are substantial. This will help you both consider factors objectively, without feeling under pressure and to reach a decision that you feel comfortable with. Many accountants will also advise on the issues and will draw up an agreement.

If you both agree to proceed, formalise the arrangement with a written agreement. This will help prevent future misunderstandings and provide a solid basis for the business relationship.

A loan agreement should cover the loan size and terms, the repayment plan and interest rates. Investment agreements are more complex and should include the amount invested, the allocation of profits and shares, roles and responsibilities of both parties and a repayment schedule. You should seek professional advice to help you draft any written agreements.

Pros and cons
 

Pros

  • they may be more flexible than other lenders
  • they may offer loans without security or accept less security than banks
  • they may lend funds interest-free or at a low rate
  • they may agree to a longer repayment period or seek a lower return on their investment than formal lenders
  • they know your character and circumstances
Cons
  • misunderstandings can damage the relationship
  • there is a risk your investors may offer more than they can afford to lose, or that they will demand their money back when it suits them and not your business
  • they may want to get more involved in the business, which may not be appropriate

Common mistakes
 

It may be tempting to have an informal agreement with your friends or family who are financing your business, but this can lead to confusion. To avoid any future issues, you should:

  • Be clear about your own expectations - specify how long you need the money for
  • Detail the repayment level you can afford
  • Spell out how many shares or what profit the investor will receive - and when any returns will be paid
  • Clarify whether an investor will have any financial liabilities for your business activity
  • Draw up a formal written agreement
  • Think twice about approaching a friend or family member if other sources of finance have turned you down
  • Analyse the reasons for this and review your business proposition. Remember that if your business fails, lenders and investors may lose their money
  • Pass on the reasons that others gave for turning you down

Funding sources
 

Family and friends that have some extra money and experience in business may be good sources of finance, especially if you are just starting up. You may want to consider publishing your pitch on a crowdfunding website – this can be a way of raising funds from family and friends without the embarrassment of having to ask in person.

If you can’t find friends or family to loan you money or become investors in your business, you may want to consider other sources of finance.

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8 results found 
WomenCentre Announces Latest Corporate Supporter

Monday 05 November 2018

Huddersfield-based charity, WomenCentre has announced KC Communications as the latest business to join its corporate supporter programme as it seeks to enhance the assistance it provides to local women and children. WomenCentre is a local charity, with local centres in Huddersfield, Halifax and Dewsbury. It provides a wide range of services including emotional and practical support on issues such as debt, benefits, mental or physical health, domestic violence, counselling, training and development - and much, much more. The relationship comes from KC Communications, a marketing and PR company based in Lindley, Huddersfield, gifting marketing consultancy and advice to help the charity understand how to enhance its presence in the region. As a result of KC Communications learning more about the organisation, Managing Director Katrina Cliffe signed up the workforce, who are predominantly female, to become corporate supporters of the charity. Katrina said “As a local business with the Kirklees and Calderdale area at our heart, we are passionate about giving back to our community and delighted that we could support and promote such a worthy cause through pro bono work and corporate support”. Maxine Edwards, Communications Manager and volunteer worker for WomenCentre, added: “We'd like to say a big thank you to Katrina for the marketing consultancy she gave to us - and also to the entire KC Communications team, who have signed up as corporate supporters of WomenCentre. “The reality is, that if every woman in the Kirklees and Calderdale area became a member, we wouldn't require funding from other areas to provide the vital services for local women facing disadvantages – so we’re really looking to grow our member base and reach out to local women to get involved”.
Posted by KC Communications
Applications close in 5 days: Do you have an idea that would benefit from a micro-grant and exposure to a supportive audience?

Monday 29 October 2018

Applications to pitch at Huddersfield SOUP no.7 close at 1pm on Saturday 3rd November. If you have an idea, a project or a proposal that would benefit from being shared with a supportive audience and a micro-grant, submit your application now for our panel of judges to consider. You can submit your application at the following link https://www.huddersfieldsoup.com/apply/ The rules are simple, you have to live in Huddersfield and / or the project must benefit a Huddersfield person, business, organisation or community. SOUP is a great way to raise money, build community support and get connections to local resources that can help you carry out your project. In exchange for a minimum donation of £5, the audience receive soup, entertainment and a vote. Four pitches will be chosen to present at Huddersfield SOUP #7 and the winner is the pitch that receives the most votes and they are given all the door money as micro-grant. For more information about Huddersfield SOUP or to reserve your tickets for the November 14th event please visit https://www.huddersfieldsoup.com/
Posted by The Media Centre
Huddersfield Charity Claims Dragon Boat Race Gold Victory

Monday 09 July 2018

Avalon Mae Social Media Marketing were personally invited by The Laura Crane Youth Cancer Trust to take part in their #RowingForResearch charity event at The Pugneys Dragon Boat Race on Saturday 7th July as part of the team ‘The Scientists’. The Laura Crane Youth Cancer Trust is the only UK charity funding medical research specifically into cancer affecting teenagers and young adults. The Trust also funds measures to improve the quality of life for young cancer patients, both during and in the aftermath of their illnesses. The Scientists team included members from other local businesses, students, friends and scientists from The Georgopoulos research group at Huddersfield University who are working on pioneering research which could lead to a new form of cancer treatment free from the harmful side-effects often experienced with treatments such as radiotherapy and Chemotherapy. Avalon Mae are members of The Laura Cranes ‘Fight Club’. A club where companies support the charity through sponsorship, donations, fundraising and more. The day went off to a flying start with The Scientists placing 1st in their first 2 heats. The 3rd heat was one not to be missed as team ‘Chappers Raiders’ capsized on the finished line next to The Scientists and still took 2nd place leaving The Scientists 3rd place in the 3rd heat. There was still a fighting chance for The Scientists as they qualified for the final of the women’s event. After all the heats were complete The Scientists were joint top for fastest women boat so the sweat was on for the final. 6 teams qualified for the final, however, only 2 teams stayed so it was The Scientists rowing for The LCYCT against the Mighty Mac’s rowing for Macmillan! Who would take the trophy and gold medals home? After a team talk and the motto ‘Failure isn’t an option’ The Scientists used their successful method of shouting ‘Lean! Back!’ and paddled like they had never paddled before! It was a very close race all the way through to the last stretch. The Scientists pulled out in front and, as the air horn sounded, a roar came from the boat and they were victorious. The Scientists took home the trophy for The Laura Crane Youth Cancer Trust and each member was awarded their gold medal by Gwen Lowe, Mayor of Kirklees. Well done to everyone who took part in The Dragon Boat Race at Pugneys Country Park for such amazing causes. Special thank you to Gable Events for hosting the event and to members of Chappers Legends, Chappers Raiders and RSPCA Halifax, Huddersfield and Bradford District for becoming members of our boat for the final rounds. We shall be there next year defending our title on Saturday 6th July. See you then! Facebook - @avalonmaesmm Instagram - @avalonmaesmm Twitter - @avalonmaesmm Website - www.avalonmaesmm.co.uk
Posted by Avalon Mae Social Media Marketing
Finalists announced for prestigious Handcraft Tailor Scholarship Award

Monday 16 April 2018

The shortlist for the inaugural Handcraft Tailor Scholarship Award competition has been revealed, with nine students having been selected to proceed to the final stages of judging. Launched last year as a collaboration between the Handcraft Tailor Academy, Dugdale Bros & Co., Association of Suppliers to the British Clothing Industry (ASBCI) and The Textile Institute, the scholarship competition will see the winning entrant embarking on a 12-week summer tailoring course in Monaghan, Ireland, from June to August, under the tutelage of Rory Duffy – Master Tailor and former Golden Shears Award winner. Open to students across the UK and Ireland enrolled on tailoring, fashion, costume design and fine art courses, the standard of applications was extremely high – showcasing a great deal of creative and technical talent. With the top nine entrants having now been carefully selected by Robert Charnock – chairman of Huddersfield cloth merchant Dugdale Bros and Co. – and industry-renowned tailor Alan Cannon Jones, these students will proceed to the final assessment stage of the competition. Three entrants from Limerick School of Art & Design have been shortlisted – Anna O’Doherty, Louise Marchard and Hong Zhang – alongside Jakub Lipjanec and Ffion Wym Williams from the University of South Wales, Joel Yip from London College of Fashion, Kiera Robinson from Sheffield Hallam University, Dominic Browning from Leeds Beckett University and Morgane Krischer from Westminster University. Commenting on the shortlisted entries, Robert Charnock said: “The calibre of applications has been extremely high, and we were impressed with the level of skill, creativity and dedication demonstrated by all students who entered. The hard work put in by all entrants must be applauded. “The whole idea behind the competition is to bridge the gap between education and industry, and all the finalists have demonstrated that they can effectively transfer the techniques they have learned so far to real-life tailoring applications.” Alongside a written entry, the students were required to submit a 13-sample sewing stitch book, using a minimum of five different qualities of woven wool cloth to demonstrate their proficiency in hand-stitching and pocket production. Alan Cannon Jones elaborated on the finalists’ technical proficiency: “For students with only limited experience of hand-stitching and technical tailoring applications, the entries were executed to a superb standard. But as well as this craftsmanship, we were also looking for evidence of the entrants’ potential to advance under Rory’s expert guidance. “Our chosen finalists all showed real promise and creativity, along with a desire to develop their existing skills. I’m sure all have a bright future ahead of them, and I’m excited to see how the scholarship winner will flourish after 12 weeks of dedicated training.” Set to be announced on Sunday 22 April, the winning student will be tutored by Rory Duffy in world-renowned Savile Row techniques, learning to measure, draft, fit and make a bespoke suit. All course fees have been covered by the Handcraft Tailor Academy, whilst accommodation and cloth costs have been sponsored by Dugdale Bros and travel expenses paid by The Textile Institute. Further information about the scholarship award can be found at www.htsaward.wixsite.com/htsa.
Posted by Scriba PR Limited
Kirklees’ Biggest Business Conference Returns

Tuesday 06 February 2018

Following on from the huge success of the 2017 Conference, the Mid Yorkshire Chamber is delighted to be hosting their 2018 Kirklees Business Conference (KBC) at John Smith’s Stadium, Huddersfield on Wednesday 21st March. The free, one-day conference has become an unmissable event in the local business calendar which is dedicated to helping businesses to connect, learn and grow. Attracting over 600 business people and 50 exhibitors, KBC includes a fantastic programme of engaging seminars, a discussion panel, surgery sessions and open networking throughout the day. This year the Mid Yorkshire Chamber is proud to announce an official partnership with Google bringing a Digital Garage to KBC as part of the seminar programme. Running alongside the four seminar sessions, more surgery sessions will also take place following their success last year. Held by local businesses located in the stadium boxes, the surgeries will provide the opportunity for companies to run their own seminars, workshops or one to ones. Rory Bourke, Events & Sponsorship Co-ordinator at the Chamber said: ”Kirklees Business Conference is definitely shaping up to be a day not to be missed. The conference is a fantastic opportunity to raise your profile, make new contacts and learn from other experienced professionals. There are many opportunities for local businesses to get involved through sponsorship, exhibiting or attending as a delegate.” Confirmed conference sponsors and partners include; AD:VENTURE, The John Smith’s Stadium, The Design Mechanics and Social Progress. Delegate tickets are free but registration is essential, significant interest is anticipated therefore early delegate booking via www.kirkleesbusinessconference.co.uk is advised to avoid disappointment. For further information about the conference follow @MYBizConfs and #KirkleesConf on twitter. To find out more about sponsoring or exhibiting at the event please email events@mycci.co.uk or call 01484 483679.
Posted by Mid Yorkshire Chamber of Commerce
Smith Brothers spins towards a £2.5k festive fundraising total

Tuesday 19 December 2017

Elland-based electrical engineering firm Smith Brothers has completed a week-long festive fundraising venture, raising more than £2,500 for three charities. The main event saw two squads of eleven competing in an indoor ‘bikeathon’ at the company’s HQ last week. With one side representing the British Heart Foundation and the other Diabetes UK, both were tasked with racing the equivalent distance of 206 miles from the Lowfields Business Park boardroom to Big Ben. Although the British Heart Foundation cyclists were first to cross the finish line, both teams far surpassed their initial fundraising targets of £500 each. Donations amounted to £1,283.82 for the winners and £1,193.94 for Diabetes UK. The power engineering contractor also raised £100 for Save the Children through a bake sale and sweepstakes competition, which were held alongside the bikeathon. Elaborating on the successful fundraising activities, managing director Nick Gudgeon said: “It goes without saying that festive spirits were high in the office during last week’s charity cycling challenge – and competitive streaks were revealed too! “Even though my team narrowly lost out on the winning title, it was still brilliant to get involved with the bikeathon and we’re thrilled to have beaten our sponsorship goals for both organisations. It’s always uplifting to see people rallying together in aid of such worthwhile causes, and we’re especially grateful to the volunteer cyclists for taking part, AKTIV Training Coach for lending us the bikes and all those who generously donated.” Earlier in 2017, Smith Brothers also backed a golf day in aid of the Quaggy Development Trust and sponsored a benefit dinner hosted by Frank Bruno for the Nigel Harris Sports Foundation. The company additionally sponsors an under 9s football team as part of its community support.
Posted by Scriba PR Limited
Around Town In the Huddersfield Live Hygge Tipi

Wednesday 15 November 2017

What better time to get together than Christmas? Around Town believe that connecting the business community of Huddersfield in its iconic locations and organisations is a brilliant way to share ideas, hear inspirational stories and have some FUN. Organised by Oli Smith, Michelle Crowther and Chris Buckley Around Town create memorable events every 3 months. 2018 plans are already underway; “as well as meeting at some amazing businesses we are walking Around Town in Spring - a fantastic way to get to know each other whilst experiencing some award winning locations and scenery in Huddersfield “ says Michelle And with Huddersfield Live December promises to be a memorable Around Town event. Hosted in the Hygge Tipi in St Georges Square, hear Sam Watt and Poppy Stahelin tell of the fabulous work the team at Huddersfield Live are doing and some of the stunning events planned for next year. Laura Drury sets the backdrop of how she formed the The Hygge Tipi and how it creates a convivial atmosphere for Huddersfield folk to mingle, drink mulled wine, and keep the winter night out in front of the log fire. All In the heart of Huddersfield. Tickets are limited and can be reserved FREE here. Chamber members old and new are very welcome. Around Town Events for 2018 confirmed. March 1st - Valli Opticians May 17th - Owen Scott Tailors May 25th - (Walk) Around Town - 15miles (approx) Breakfast Sarnies, The Kirklees Way, Finish in a Brewery!
Posted by The Alternative Board
Group supporting crisis-hit asylum seekers wins crowdfunding cash at Huddersfield SOUP

Friday 10 November 2017

A charity that feeds and supports people fleeing war zones and violence gained a boost to its funds after winning the fourth Huddersfield SOUP event at The Media Centre. Destitute Asylum Seekers Huddersfield (DASH) was one of four good causes to pitch for audience members’ £5 entry fees at the packed crowdfunding get-together at Café Ollo and was delighted to win £400. Mike Shaw, who presented a four-minute bid, explained how DASH provides hot meals and help with casework, health and education issues and language. He said: “We will spend this money well, it won’t last long. It will go on food, bus fares and essentials. It is wonderful to be in room full of people who care. Thank you for the generosity of the citizens of Huddersfield.” Huddersfield SOUP, which has been running for a year, is based on an American concept in which four people pitch, four questions can be asked of each presenter and then the audience must vote for their favourite – as well as enjoying a bowl of warming soup, a bar and live music. The Media Centre’s Chief Executive, Brent Woods, said: “This was another great SOUP event with original, emotive pitches. The atmosphere was buzzing and there was plenty of opportunity for participants to meet new people and make connections. Big congratulations to DASH, our worthy winner.” Other people to pitch were: • Rachel Devereux who wants to develop her idea of ‘emergency bears’ for families to keep in their cars so that if there is an accident, paramedics can scan the bear electronically to receive important information about children on board. • Victoria Callum-Ward who is organising a Winter Pride event at Tokyo in Huddersfield to raise money for the Hands Off HRI campaign. • Sam Booth who talked about Crowns For Courage, her initiative to offer confidence-boosting head henna tattoos to women who have undergone chemotherapy and lost their hair. The event was compered by Rebecca Winwood, Zephyr Bar and Kitchen provided delicious pumpkin and pea and ham soups and Clint Junior, booked through Small Seeds acoustic nights, sang and played guitar. Those seeking help from DASH include women fleeing forced marriage and domestic violence, gay men facing persecution and many escaping war zones and conflict. Often they don’t know if they will be allowed to stay in the UK and find it difficult to prove what they have been through. DASH operates from the Salvation Army premises in New Hey Road, Oakes. It has five part-time staff who are paid for through charitable trusts as well as over 50 volunteers. For more information about DASH or to donate, go to www.huddsdash.org.uk
Posted by Scriba PR Limited
8 results found 
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