STARTING a business of your own can be a daunting enough process. There’s a huge responsibility but getting your money right from the beginning is important. Do this right and you’re automatically removing a fear factor which could actually stop you in your tracks before you even begin. Here we look at business grants and the alternatives.
Our firm has helped so many people by pointing them in the right direction and there are a lot of government grants available for small business which can save you money, reduce your initial start-up costs and empower you to grow your own business.
Grants which are awarded could potentially save you money on your business premises and also rates or they can help you with buying equipment.
Not everything is made easy so it’s important to take advice. There are lots of processes and stages you must go through and grants each have their own criteria for applying.
And while government grants may not suit everyone there are of course alternatives.
• Equity Finance – This is when you sell a share of your business in return for finance. Some Equity finance schemes, such as the Seed Enterprise Investment Scheme, offer up to a 50 per cent reduction in income tax on investments made in new businesses up to £100,000. Businesses have to be less than two years old and have fewer than 25 employees.
• Soft loan – These are similar to grants but are actually loans with lower interest rates and more generous terms than can be found via other lending routes. Backed by the government Start Up Loans scheme offers personal loans of up to £25,000 with a six per cent interest rate and access to free business support and mentoring.
Business grants
How do I apply for a government business grant?
Each scheme is different but check you meet the general terms and criteria before you get too far into the application process. Most grants are very specialist, such as creating a specific type of business or building a business that will help regenerate a local community. Here are our tips of successfully applying for a new business grant.
• Talk to the grant body – this will help you assess your chances of making a successful application.
• Read the grant objectives – take time to learn why this grant is being awarded and what it aims to achieve, such as hiring staff from a local community or developing environmentally friendly products. Write your application referring to the objectives as closely as possible to stand the best chance.
• Have a great business plan – as with other types of funding, the awards body for the grant will expect to see a professional business plan and, if you’ve started trading, examples of your business position and balance sheet.
• Focus on the grant use – grants are usually awarded for a specific project, such as buying IT equipment or funding broadband installation. Use the application to show how this will help grow your business and benefit others, rather than on the (in this case) IT equipment itself.
• Check your funding – most grants will look to match the amount you’re willing to invest, so if you’re seeking a grant of £10,000 then make sure you’ve a matching amount available.
• Start applying early – you’ve a better chance of receiving a grant if you apply when a scheme first launches. Grants may have a limited pot of money to invest – early on, there’s simply more funding available and less competition to get it.
Our team of business finance specialists will offer you independent advice and expertise so email us on info@wwfp.net and we will guide you on your journey with the right solutions in place for you.