![\"Alison-Bradley\"](\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2015\/10\/Alison-Bradley-300x200.jpg\")
<\/p>\n
1) Demonstrate Commitment to the Business<\/strong><\/p>\n When borrowing money to expand or start a business, be sure to demonstrate your commitment to the business. For example, what are you willing to risk?\u00a0 What is your contribution to the business proposal? Is it a business or a personal contribution?\u00a0 More importantly – make sure your own personal finances are in order.<\/p>\n 2) Have a Great Business Plan <\/strong><\/p>\n Obviously some businesses have defects \u2013 poor profits, a weak balance sheet, or a lack of security.\u00a0 If the business has the potential for growth, then these defects can be overcome with a good business plan and professional advice on the matter of finance.<\/p>\n 3) Provide a Strong Presentation<\/strong><\/p>\n One possible barrier to accessing finance can be presentation. Is the business proposal right for the target audience? Have the funder\u2019s requirements\/policy been considered? Do they require a matched cash contribution?\u00a0 If it\u2019s a public sector lender, is job creation important? Are there any exclusions?<\/p>\n 4) Demonstrate Experience and Skilled Management<\/strong><\/p>\n A small businesses or start-up\u2019s management team is particularly important. Do they have the necessary experience? Are good financial controls in place? This can be a massive hurdle when it comes to financing a company, and often management weaknesses will have to be overcome.\u00a0 The appointment of a non-executive director or finance director \/controller can very often help you to avoid these weaknesses.<\/p>\n 5) Finally \u2013 Take Advice! <\/strong><\/p>\n The commercial finance market has changed dramatically in the last seven to eight years.\u00a0 There are a whole myriad of new finance initiatives available in addition to standard bank finance, which not all businesses can take advantage of. A good advisor will be able to direct you to the most appropriate method of financing for your business.<\/p>\n <\/p>\n You need to keep track of your numbers. This data will provide you with an understanding of your cash requirements alongside many other key issues. The numbers you should track here should be total debt and debtor days, weekly invoicing, bank balance, stock and work in progress, creditor balances and your weekly income and expenditure. If you keep on top of these numbers then you\u2019ll be able to better manage your bank balance and cash flow.<\/p>\n 2. Keep Debtors at a Minimum<\/strong><\/p>\n It\u2019s a common occurrence that I see small businesses having a large debt balance in proportion to the size of their business. You need to ensure your customers pay you within a stipulated timeframe.\u00a0 This can be difficult, especially if your customers are bigger than you. This is why you need clear terms and conditions which you must share with all of your customers. Interestingly, usually a few customers tend to owe most of the money. It would be wise to keep track of these customers and encourage them to pay in a timely manner.<\/p>\n 3. Remember the Pareto Principle<\/strong><\/p>\n The Pareto principle, better known as the 80\/20 rule, will apply to your business just like it does to every other business. How this helps is that you need to look at the 20% of issues which are causing 80% of your cash flow or funding challenges. Address these issues first so that you can free up more money quicker. This could be linked to slow paying customers, suppliers wanting quicker payments, poor stock control, too much unbilled work (work in progress) etc. Find the one or two things which are relatively simple to address but will have a big impact on your business.<\/p>\n 4. Know your Options<\/strong><\/p>\n There are various options available to you when it comes to raising finance. You need to consider and review all of your options rather than just going with the first solution that comes to mind. Options include:<\/p>\n 5. Run a Tight Ship<\/strong><\/p>\n Keep a simple 12 month cash flow statement for your business. This doesn\u2019t have to be a complicated document. A simple MS Excel spreadsheet will do the job. Through this you can manage your costs, because it\u2019s important that you run a tight ship. Overspending is a major reason for cash flow difficulties. You\u2019ll also be able to look at periods where business is slow and then plan accordingly in advance. That way you can also push harder in those months so that you sign up more business.<\/p>\n <\/p>\n You don\u2019t need to know people who are looking to invest, you just need to let enough people know about your business model and that you have a funding round open. When networking, focus on your business model and what your three year plan is, then mention the funding round that will help you get there. Those who are excited about your business will be interested in the funding side too.<\/p>\n 2. Create a Shareholders Network<\/strong><\/p>\n Once you get 2-3 people to invest, you want them to be as informed as possible, so when they network they can encourage further investments. By sending shareholders monthly newsletters and hosting events, it will encourage existing shareholders to re-invest or keep momentum up to attract new investors.<\/p>\n 3. Find Funding First<\/strong><\/p>\n Try to get as much funding as you can before you start your business. If you don\u2019t, it may end up distracting you and taking your focus away from business development.<\/p>\n 4. Paint Success by Numbers<\/strong><\/p>\n Know your current KPIs, but also know what they will look like in a year\u2019s time with \u2018x\u2019 amount of funding. This will allow investors to visualise what impact their money would have on the business.<\/p>\n 5. Target Investors Who Could Double as Mentors<\/strong><\/p>\n If an advisor has shares in your business and industry experience, it will be in their best interest to help your business grow. By having an investor and a mentor for free, your business will have a good foundation to grow and enter the next stage of funding when you need it.<\/p>\n <\/p>\n Thanks to all our contributors for their valuable advice. For more expert tips be sure to follow us on Facebook<\/a> and Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Identifying a gap in the market with a good idea can be the start of a great new business – but it\u2019s not going to guarantee success without funding. In this edition of \u2018tips from the experts\u2019 we’ve gathered great advice from three experts in the field on how to fund a small business. Alison Bradley, Managing Director at Central Finance 1) Demonstrate Commitment to the Business When borrowing money to expand or start a business, be sure to demonstrate your commitment to the business. For example, what are you willing to risk?\u00a0 What is your contribution to the business proposal? Is it a business or a personal contribution?\u00a0 More importantly – make sure your own personal finances are in order. 2) Have a Great Business Plan Obviously some businesses have defects \u2013 poor profits, a weak balance sheet, or a lack of security.\u00a0 If the business has the potential for growth, then these defects can be overcome with a good business plan and professional advice on the matter of finance. 3) Provide a Strong Presentation One possible barrier to accessing finance can be presentation. Is the business proposal right for the target audience? Have the funder\u2019s requirements\/policy been considered? Do they require a matched cash contribution?\u00a0 If it\u2019s a public sector lender, is job creation important? Are there any exclusions? 4) Demonstrate Experience and Skilled Management A small businesses or start-up\u2019s management team is particularly important. Do they have the necessary experience? Are good financial controls in place? This can be a massive hurdle when it comes to financing a company, and often management weaknesses will have to be overcome.\u00a0 The appointment of a non-executive director or finance director \/controller can very often help you to avoid these weaknesses. 5) Finally \u2013 Take Advice! The commercial finance market has changed dramatically in the last seven to eight years.\u00a0 There are a whole myriad of new finance initiatives available in addition to standard bank finance, which not all businesses can take advantage of. A good advisor will be able to direct you to the most appropriate method of financing for your business. Shaz Nawaz, Director of AA Accountants 1. Stay Informed You need to keep track of your numbers. This data will provide you with an understanding of your cash requirements alongside many other key issues. The numbers you should track here should be total debt and debtor days, weekly invoicing, bank balance, stock and work in progress, creditor balances and your weekly income and expenditure. If you keep on top of these numbers then you\u2019ll be able to better manage your bank balance and cash flow. 2. Keep Debtors at a Minimum It\u2019s a common occurrence that I see small businesses having a large debt balance in proportion to the size of their business. You need to ensure your customers pay you within a stipulated timeframe.\u00a0 This can be difficult, especially if your customers are bigger than you. This is why you need clear terms and conditions which you must share with all of your customers. Interestingly, usually a few customers tend to owe most of the money. It would be wise to keep track of these customers and encourage them to pay in a timely manner. 3. Remember the Pareto Principle The Pareto principle, better known as the 80\/20 rule, will apply to your business just like it does to every other business. How this helps is that you need to look at the 20% of issues which are causing 80% of your cash flow or funding challenges. Address these issues first so that you can free up more money quicker. This could be linked to slow paying customers, suppliers wanting quicker payments, poor stock control, too much unbilled work (work in progress) etc. Find the one or two things which are relatively simple to address but will have a big impact on your business. 4. Know your Options There are various options available to you when it comes to raising finance. You need to consider and review all of your options rather than just going with the first solution that comes to mind. Options include: Business bank loan or overdraft Personal bank loan Invoice factoring or discounting Crowd funding Loan from family\/friends Asset finance if buying equipment, machinery or other assets Consider leasing versus buying Amending payment terms with suppliers 5. Run a Tight Ship Keep a simple 12 month cash flow statement for your business. This doesn\u2019t have to be a complicated document. A simple MS Excel spreadsheet will do the job. Through this you can manage your costs, because it\u2019s important that you run a tight ship. Overspending is a major reason for cash flow difficulties. You\u2019ll also be able to look at periods where business is slow and then plan accordingly in advance. That way you can also push harder in those months so that you sign up more business. Terry Koutsios, Founder and CEO of fivesquid.com 1. Network with a Game Plan You don\u2019t need to know people who are looking to invest, you just need to let enough people know about your business model and that you have a funding round open. When networking, focus on your business model and what your three year plan is, then mention the funding round that will help you get there. Those who are excited about your business will be interested in the funding side too. 2. Create a Shareholders Network Once you get 2-3 people to invest, you want them to be as informed as possible, so when they network they can encourage further investments. By sending shareholders monthly newsletters and hosting events, it will encourage existing shareholders to re-invest or keep momentum up to attract new investors. 3. Find Funding First Try to get as much funding as you can before you start your business. If you don\u2019t, it may end up distracting you and taking your focus away from business development. 4. Paint Success by Numbers Know your current<\/p>\n","protected":false},"author":1,"featured_media":8314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,217],"tags":[7,93],"class_list":["post-2060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-growth","category-expert-tips","tag-business-tips-2","tag-tips-from-the-experts-2"],"yoast_head":"\nShaz Nawaz, Director of AA Accountants<\/a><\/em><\/h2>\n
\n![\"Shaz-nawaz-profile\"](\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2015\/10\/Shaz-nawaz-profile-300x200.jpg\")
1. Stay Informed<\/strong><\/p>\n\n
Terry Koutsios, Founder and CEO of fivesquid.com<\/a><\/em><\/h2>\n
\n![\"terry-koutsios\"](\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2015\/05\/Terry-Koutsios-200x300.jpg\")
1. Network with a Game Plan<\/strong><\/p>\n