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Set Up a Successful Small Business: Funding

by Vera Hughes and David Weller

If you need funding, first assess how much funding you can contribute yourself, perhaps through redundancy or from savings, without re-mortgaging your house. If friends and family lend you money, make sure the agreement between you is written up in a clear and business-like manner.
Banks normally want to lend money, but need to be certain that your business is potentially viable and that you will be able to repay the loan and eventually the capital. Gather starter packs from two or three banks, and use the pack provided by the bank you intend to approach, which could well be one where you already have a well-managed account. A bank will need to see a good business plan; your accountant or Business Link can advise you.
Central government or the EU often has grants available for new businesses in specific geographical areas, or for specific projects, such as setting up an e-commerce business. Visit the DWP or BIS websites. Local authorities, too, will sometimes wish to support new small businesses, or part of the business, such as converting to broadband. It is worth exploring your local and county authorities.
If you are between 14 and 30, consider approaching The Prince’s Trust (www.princes-trust.org.uk), which has a good reputation for helping young people set up their own small business. Likewise, Prime (www.primeinitiative.org.uk) is available to those over 50, a charity linked to Age Concern.


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