How to Fund a Start-up Export Business
There’s a whole world out there as many UK start-up businesses are finding out. For new UK companies all the world’s a marketplace and fortunately there are plenty of great ways for them to fund their export start up.
Even though funds for many start-ups are limited by conventional means, there’s a whole raft of alternative ways to gain funding and we’re going to take a look at some of them.
Crowdfunding is a booming industry and there are dozens if not hundreds of websites now that offer the service for start-ups. All you need is an idea, a marketing plan and some push and crowdfunding sites can be a beacon for start–up funds.
Crowdfunding is a fantastic way to get people behind your business and once you’re willing to treat people with respect can be a fantastic way to kick start your new company. True there have been some less than desirable crowdfunding efforts in recent months and plenty of vanity projects on these platforms, however with the right approach you can use it as a stepping stone.
The Seed Enterprise Investment Scheme is a fantastic opportunity for businesses and investors alike and also worthy of consideration for those looking for start-up funds. To make things even better the SEIS are schemes promoted by the UK government.
The scheme encourages people or businesses with money to spare to invest in small, up and coming businesses and give them an inventive in the form of relief from income tax. It also benefits them as it means that they are omitted from having to pay capital gains tax on the profits they make from the investment.
Needless to say, there are plenty of rules and regulations around the area of SEIS and you can read about them here.
However, SEIS has been utilised by a variety of start-up companies and have helped them achieve success. The recent EISA Awards attended by businesses such as Key Business Consultants showcased the power of such efforts. While Green Shoots launch on the 19th is also an exciting prospect.
Grants can be a great way to finance your business if you’re lucky, however they can be hard to locate and get. That said, there is no better form of funding than a grant and it’s well worth looking into whether or not your business idea is eligible for one. There are grants for all sorts of start ups and start up owners, so do some research and see what you can come up with.
Angel investors are always on the lookout for a new idea and if they believe that they can make money from a profitable start up, they will invest. Yes, they will probably look for a large lump of equity from your business, however if you’re comfortable with this and also want their advice, then it could well worth be something to consider.
Small Business Loan
Finally, the small business loan – that’s if you can get one. Small business loans are harder to get nowadays, however if you can manage to they can be a great source of finance. Banks need to be able to verify what every penny of your money will be spent on and there’s always the risk you won’t get a loan. It’s the most conventional option here, but potentially well worth giving a try.
These are just some of the many ways new businesses are financing their costs and making big waves across the continents.