Top tips for successfully securing funding for your business
The key enabler for success for many startups and small businesses is securing funding. Even with the growing support around the world for investing in entrepreneurs, many businesses still struggle with the preparation required when applying for funding.
Here are our top tips:
- Network - get out there and build your network. This is invaluable not only to build the business, but also to get invaluable support and information from other businesses, including finding out how they went about raising finance.
- Start your funding applications before you spend money - It would be risky to embark on your startup idea and start spending money if you don't have a very clear understanding of how you will pay for things. It’s particularly important not to take on any leases or contracts if you can't commit to the full term of these.
- Prove your business idea is viable - work with us to prepare cash flows and forecasts in order to give both parties really crucial insights on how you will manage your growth plans - from how many staff you will need, to how you are going to reach anticipated sales targets.
- Put your money where your mouth is - Funding providers are always looking for the applicant to be taking some of the financial risk themselves and it’s important to have made a contribution to show your belief and commitment to the business.
- Provide in depth detail in your application - make sure you give potential investors all the information they need in order to invest.
Why is it best to involve a professional when applying for funding rather than doing it yourself?
The right professional will have experience in funding applications, will know what the funding provider is looking for, and also how best to present the information. And from the funding providers perspective, a qualified accountant on board proves the viability of the business idea.
Make the job easier with software tools
Utilising cloud accounting software gives you up-to-date data for investors, at your fingertips. Tools, such as Spotlight Reporting, allow you to tweak forecasts and scenarios to reflect different outcomes. These could include things like: what happens if we increase income from quarter two onwards? What happens if customers take sixty days to pay instead of thirty?
We can help ensure your data and reporting is correct and that you have everything you need when applying for funding.