Raising Finance ~Q&A~

Sell your body. Okay, seriously that is the big problem that nearly everyone has faced here. I started on of mine with £5,000 I had saved from my paid employment. Of course £100K is a bit different. I have seen many gaps closed years after I could have done it because I couldn't get the funding. You need to find a small venture capital firm or business angel as most VC will look to invest more than £100K and want it to double each year for three years!
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www.youcangetit.co.uk - Business services and community. Do you get it?

Mmm, Sounds like a tough one, So If im looking to start small and follow an agressive eXpansion strategy? Would it be a case of selling your business plan/idea to them? they fun you .. and then.....how much of your soul do you end up selling in 'the real world?' Did'nt Coffe Republic do it on 90k?

PASS YOUR BUSINESS PLAN OFF ONTO BARCLAYS STARTUPS IF THEY ACCEPT THEN GO IF NOT BY A HOUSE AND GET A JOB
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Brian Fin

www.businessbx.com

www.courtico.com
on

Thanx for suggestion but I have a J.O.B. Paying just under 30K/p.a. as you know it's not about the money! [] Also if you keep showing different people you business paln i.e. Business Angels etc. isn't sombody gonna take the idea and eventually rip it off? or is there a law against this [?]

Hi Shui, No there is no law against it - so what's your idea :-) Only joking! You have hit on 2 major problems - one of which we are constantly grappling with - raising finance (once you've got money, or a successful business, they'll throw it at you, trust me!) The down side to this is "starting" up. We (and I suggest a lot of people) took risks that most sensible people wouldn't. But, sometimes, if you believe in it enough you just HAVE to do it - you'll hate yourself otherwise :-) The other of course is unscrupulous "business" people. We "lost" an idea that is now making plenty of money due to exactly the reasons you quote. We couldn't raise finance, tried the banks, etc. but eventually went to a business "friend" who basically said it was far too risky. He then, we later discovered (Companies House is a wondeful place!!), passed that idea on and became a director (and major shareholder) in a Co. doing exactly what we had wanted to do. His excuse? It *WAS* to risky FOR US, but he could ride out the setup costs, etc. and therefore wasn't too risky FOR HIM :-( Morals eh?! You are stuck between a rock and a hard place I am afraid, and you will either take the risk or you won't, but remember you can always come back to the idea later if it doesn't seem possible right now!
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Shui, Visit the worldbank website and you will be amazed at the number of opportunities that you may make use of. If the gap is real and workable and it has any positive impact on the society, chances are that you could get some form of financing either through loans, grants etc that is if the worldbank isn't running the programs in your country. Venture capitals and/or business angels are options but understand the advantages and disadvantages before deciding. Just know that if you must get funds that are not loans, you must be ready to give up part ownership of your company and whatever you intend doing and how you intend doing it won't necessarily be your decion alone. You will be at the mercy of the investors and should anything go wrong you stand to loose maybe your life savings (afterall the project is your baby) while the investors will only loose part of their money since they are into the business of looking for where to invest. On a personal note, please don't get used to selling your properties in a bid to raise money unless you are sure that selling them will surely complete the total amount you need and even more for contingency purposes.
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Afam Nnaji
Just Web Services.
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So are we saying even with a bullet proof Business Plan, excellent support material, a heap of potential suppliers who are as eXcited as I am, it's gonna be a non'starter unless I sell my kidneys on the Black Market? Are there any other things I can do to 'Pursuade' the Banks, that haveing the money isnt everything? I'm currently doing as many business related courses as is humanly possible[B)] Don't like the idea of giving away 'my baby' at least until it start's comming home late! []

have you tried looking at the information on the start-ups main page? Also, www.fool.co.uk there is a section re: business etc so take a look at that. And good luck!! www.Inspireduk.net
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www.rpevents.co.uk - New site is LIVE!!!
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Rachel, Thanx for the link [] I'll check it out tonight

quote:

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[i]Originally posted by Shui[/i] [br]So are we saying even with a bullet proof Business Plan, excellent support material, a heap of potential suppliers who are as eXcited as I am, it's gonna be a non'starter unless I sell my kidneys on the Black Market? Are there any other things I can do to 'Pursuade' the Banks, that haveing the money isnt everything? I'm currently doing as many business related courses as is humanly possible[B)] Don't like the idea of giving away 'my baby' at least until it start's comming home late! []

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Cheers, Phil

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"So are we saying even with a bullet proof Business Plan, excellent support material, a heap of potential suppliers who are as eXcited as I am, it's gonna be a non'starter unless I sell my kidneys on the Black Market?" Well yes and no.. If it is a solid business plan, has an excellent return on investment compared to alternatives (bank, stock market, property, etc) for only a small increase in risk (is the 100k for tangible assets which could be sold to recoup losses if the venture failed?) then you should be able to find an investor. Especially if there is a strong management team involved and you are willing to give up some control to a 3rd party. On the other hand, if your venture is high risk, is to be run by an inexperienced team and the returns are not attractive compared to alternatives, then you are going to struggle. There will always be people prepared to invest in new ventures, the level of risk they will take is just dependant upon the individuals they are investing in and the potential returns... When preparing your business plan and pitch, bear this in mind. Regards James Hirst 0845 108 0411 www.a4internet.com

James, [8]Sound advice indeed:- "Is the 100k for tangible assets which could be sold to recoup losses if the venture failed?" Well the answer to this is mostly 'yes'.. But this leads me to question the next... "Especially if there is a strong management team involved" At this moment in time the management team is me! I have known for some time now that I need a 'team' with complementing skill set's, but unfortunately this is yet another area I am needing assistance? How do I find this team without giving all my ideas away[?] I will also take you advice and adjust the plan accordingly to bear in mind the comment's you have made... Thanx again[]