FINANCIAL & LEGAL


Financing Your Start-Up


Obtaining the right kind of funding is crucial in the early stages and vital for growth...


The internet is awash with companies off ering investment for start-ups. Angel


investors, venture capitalists, crowd funders, even the government


is


trying to get a piece of the UK’s entrepreneurial action. Yet securing the necessary fi nancial support for a new enterprise can be time- consuming, frustrating and ultimately fruitless. Entrepreneurs need to think carefully about


Reviewing your own fi nances is a


critical starting point. This helps reduce fi nancial waste and improve effi ciencies. Katie Massie-Taylor, co-founder of


Low interest


rates have made it cheaper to secure credit


which route to take if they are to avoid wasting time and secure the best deal.


Going it alone Unless you are fortunate enough to be independently wealthy, trying to fund a new enterprise singlehandedly is challenging. However, it is important to exhaust the obvious avenues fi rst. Even where the start-up cannot go it alone


entirely, at the very least there will need to be some reserves to promote and operate the enterprise in its earliest stages, as well as get through investors’ doors.


parent-tech app Mush, which secured £2m in venture capital, says: “The fi rst thing startups need to consider is whether they can reach a certain level of traction for their business before


securing funding.


You can often prove product market fi t on a shoestring. This will mean a far less dilutive round of funding and – crucially – will help you to


develop a lean mindset.” Talking to friends and family about fi nancial


backing is another early option. Borrowing from loved ones comes with potential pitfalls, but if arrangements are formalised and everyone knows what they are getting into, talking to nearest and dearest is a quick and relatively easy port of call. However, not everyone is blessed with


generous and sympathetic relatives, which means looking further afi eld. Low interest rates have made it cheaper to


secure credit and some banks are willing to lend, but strict borrowing criteria can exclude many businesses. More established enterprises,


493, 296


businesses were experiencing


signifi cant fi nancial distress


at the end of 2017


able to pay back loans within short time frames, or those that have collateral against which they can borrow, will have more success. Richard Wigley, innovation consultant at


GrantTree which helps secure funding for new businesses, says that bank lending may be limited to start-ups able to demonstrate they can earn money almost from the get-go. Wigley says: “Banks must be confi dent they


can get their money back, so they need to see that revenues can outstrip spending.”


Page 28


Nimble Accounting Everything Nimble do is founded in two core beliefs. As a new business owner, you simply don’t have the time to deal with bookkeeping and accounting, as your time is better spent growing the business. Secondly, a new company needs regular advice and management accounts, rather than just annually. nimbleaccounting.co.uk


Building better business together


Promotional Feature With 100 years' experience of building better businesses, GSM & Co know what it takes for yours to succeed. But what is a better business? How


should you gauge success? How will you sustain your business growth over the longer term? Your accountant should be at the very heart of


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collaborative where


partner-led


benchmarks. At GSM & Co, it’s a effort, the


through service,


that journey, visualising the future in a manner that is supported by facts and a supportive encouraging environment. At your side from the outset, the team


GSM celebrate 100 years


in business


they aim to walk in your shoes, get the measure of the business as it stands at present, where it is heading and where it just might go with ongoing advice, information and inspiration. Your accountant should never take


the relationship with your business for granted, and GSM have certainly moved with the times, taking clients on


at GSM help you make your business dreams a reality, advising you on the right structure and putting in place a robust fi nancial framework to ensure your business is fi scally fi t to take on all the rigours that the economy and the business world has to throw at it. So, with GSM on remain


board you’ll


grounded in reality, but also feel suffi ciently assured to move ahead with confi dence and work towards achieving your goals over the short, medium and longer term. Whether your business


expanding or mature; at the heart of GSM is a desire and commitment to see clients fl ourish and succeed.


WITH EXPERIENCE YOU CAN COUNT ON Contact GSM for a FREE no obligation meeting:


• rmistry@gsmaccountants.co.uk rsmith@gsmaccountants.co.uk


• 020 7935 3793 • gsmaccountants.co.uk


• GSM & Co 21-27 Lamb’s Conduit Street London WC1N 3GS


Be Your Own Boss distributed with 27


is new,


Facts corrrect at time of going to press. bit.ly/2GZjrr4 Images: istock.com


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