Posted on: 27/03/2019 by: Jon Curtis in: Funding
Raising capital is an issue many businesses come across when looking to develop and grow their venture. When seeking capital, there are a plethora of ways to raise funds, including crowdfunding, bank financing, government funding, with one of the most common being external investors.
When seeking funding for your business, it’s important to make sure that you are ready to take on that investment and that you make the most out of the capital coming into your business.
Here are some key things to consider when looking for business funding…
Know Your Market
When searching for funding, the investment seeker must know where they stand in their market and have a comprehensive analysis of any strengths, weaknesses, opportunities, and threats they might face (also known as a SWOT analysis).
Investors need to know their money is going to someone that means business and will do whatever they can to ensure a return to their investor.
Investors would usually rather invest in something that has been proven to be profitable or has in the very least proven potential.
Marketing on social media and seeking feedback on your products or services helps you better understand what might be a problem with your offering before investors do.
After a product is completed, it is much harder to adjust for profits’/investments’ sake, so it’s good to build momentum on our product to avoid any last minute changes.
Another way to bring capital into your business is by applying for tax credits. A popular one is the Research & Development (R&D) tax credit.
Since bringing a product or service to life takes time and effort, the government sees this as an asset to the country’s economy and growth and is willing to compensate business owners for their time.
With the credits being worth up to £50,000, having financial support from the government also helps make your business look more sound to investors.
Have the Paperwork Ready
It’s crucial to provide proof that you have done your research and understand your business models realistically and better than anyone.
Having a clear business plan is essential to any business making money, and investors are unlikely to invest in something that has no plan or opportunity for returns.
Business Butler is here to help you and your business’ needs, including helping you find the right investor for your new venture. To find out more about our business funding services, fill out a form or call us at 01792 721227 for a free consultation today!