W&NY Directory 2015_Layout 1 10/11/2014 10:46 Page 48
FEATURE ACCESS TO FINANCE
‘YOU WON’T ENDEAR
YOURSELF TO A FUNDER IF
THEY HAVE TO WADE
THROUGH REAMS OF PAPER
TO GET A FEEL FOR THE
BUSINESS PROPOSITION’
48 DIRECTORY OF MEMBERS 2015
W&NY Directory 2015_Layout 1 10/11/2014 10:46 Page 49
FEATURE ACCESS TO FINANCE
SMART
MONEY
STEPHEN WAUD OFFERS HIS TOP TIPS ON RAISING FINANCE
Finding the money to fund your start-up enterprise or
expand your established business can be no easy task. But
despite the negative media reports there are funds available
from a variety of sources for all sizes of businesses.
Hopefully these top tips will help you get started.
BE REALISTIC
Don’t ask for levels of funding that you are unlikely to
obtain or at rates that don’t mirror the market or the risk.
Everyone thinks their business is the next big thing but
trust me funders have heard it all before. If it is unsecured
lending you are likely to be paying higher rates of interest.
If you are a new start with little by way of collateral then
you may not be able to be funded by a bank at all.
Try alternative funders: alternativebusinessfunding.co.uk
It may well be worth engaging an accountant or a
consultant to help put your plan together. Most accountants
will give an hour’s free advice to assist. In addition to this
there are some grants available to subsidise this work. You
can check out the growth accelerator scheme where
subsidies of up to 50 per cent of the cost for advice and
support, including helping to access finance, are provided.
Visit: www.growthaccelerator.com/what-we-offer
BE CONCISE
A significant number of business plans I read are just way
too long and have information in there that doesn’t help
or inform. You won’t endear yourself to a funder if they
have to wade through reams of paper to get a feel for the
business proposition. It should be eight pages max. It
should also have an executive summary that spells out the
business and provides concise key financial information.
Some people think you can download a plan from the
internet. Think again. Your plan should always flow from
your considered assessment of the sales. What does that
mean? You need to be sure there is a market for your idea
or product and be clear about how you can exploit that
market. Someone once said that the best definition of
marketing is finding who has the money and how to get
that money out of them!
BE HONEST
Don’t try and pull the wool over the eyes of funders. They
are not idiots, this is their job. They are used to all the
tricks of the trade and they will verify what you are telling
them. So be honest. It saves time for you, and for them, if
it transpires that they cannot help you. They will do
personal as well as business checks and they will find out
if there are some financial skeletons hiding in your closet.
Make sure you have the latest management information
available for them and if you can offer security, or
collateral, then do so. If you cannot, then be prepared to
be disappointed. I have often heard potential clients
complain that they have been turned down for funding
because they were not prepared to offer up security. But
why should they be accepted? Funders won’t take all the
risk – if any! They want their money back. If they don’t
feel that’s going to happen then you won’t get funded.
BE OPEN
This means take advice. Over the years, we have had lots
of clients who seem to know better. Taking the point
above about consultants and accountants, take their
advice. That’s what they are paid for. If you don’t take
their advice at least acknowledge that you have a
rationale for that.
BE FLEXIBLE
There is no such thing as a fixed business plan. It will
change and it may change based upon the level of
funding that you may be able to realistically access.
BE PREPARED
There is more than one way to skin a cat (if you are into
skinning cats). You may find one door to funding closes
and another opens. There are crowd funders, invoice
discounters, business angels, and alternative funders like
us at the Business Enterprise Fund. Family, friends, and
other businesses too. You may find the funding came via
an entirely unexpected route. As I said, there is more than
one way to skin a cat.
Debt finance may be the last thing your business needs.
Someone investing in the business through share
purchase may be the best way forward. If that is the
world you have to explore then don’t rely on watching
BBC’s Dragons’ Den to understand how it works. Talk to
angel investors and see what, particularly, they are
looking for. Also speak to the British Venture Capital
Association or try their website www.bvca.co.uk. For
angel investors, talk to someone at Yorkshire Association
of Business Angels (YABA). Check out their website for
contact details: www.yaba.org.uk.
Good luck!
Stephen Waud is fund director for the Business
Enterprise Fund. For further information, call 01274
207217 or visit www.befund.org
DIRECTORY OF MEMBERS 2015 49