The ambitious start-up’s guide to finance

Fledgling businesses often need finance to get up and running - but what should budding entrepreneurs consider?

Starting a new business is a hugely exciting time.

You have a new product or service to get out to market before your competitors catch on, and a real sense of urgency and excitement as you form your new team around you and pull together to get your business moving and off the ground.

But the costs involved in financing a start-up can rapidly escalate.

You may be an entirely new business forming to launch something fresh, or you may be rapidly upscaling from a side hustle or ‘spare room’ business on the back of your success – formalising into a start-up and rapidly growing in order to meet higher demand or new opportunities.

Either way, the energy and buzz of your new venture will be undeniable and everyone involved will be working their socks off to secure early success and to solidify your new position in your chosen market. However, finance will invariably become a pressing issue, and the costs can mount up before you know it.

The many costs faced by start-ups

Starting a business will entail many costs and these may include:

  • Taking on staff – including flexible staff
  • Investing in new software
  • Operating from flexible office premises – provided you’re not starting a home-based business
  • Buying up stock
  • Licensing essential business services
  • Taking on an accountant
  • Taking care of business insurance,
  • Dealing with utilities
  • Building a new website… the list goes on and on.

Finance solutions for small businesses and start-ups

There are plenty of services designed to be cost-effective and scalable for small businesses so that you can take on more capacity as you grow. These can be a great choice for money-conscious start-ups.

Have you considered getting a startup loan?

Applying is easier than you may think - and as well as financing, you can receive support and mentoring to help you get your business off the ground.

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For example, flexible office space includes all utilities and overheads in a single monthly bill for space you lease on a monthly or weekly basis. Other services such as IT support costs, telephony and even meeting rooms and virtual PAs can be included in the price.

Equally, cloud-based software licenses can be bought on a per-user basis and flexed up and down according to your needs.

Inventory storage levels can be solved with services such as dropshipping while modern websites can be built quickly and easily on template websites such as WordPress, rather than needing to invest in a custom build site.

So far, so good, right?

But, even with these kinds of affordable services, the learning curve required as a new business owner is vast and it is all too common for a surprise cost to come out of the blue and threaten your precious – and minimal – reserves!

The risk of unexpected start-up costs

Whether it’s an unexpected VAT bill, a bigger-than-expected import bill due to currency fluctuations, a supplier raising their prices or your business rates being larger than anticipated, all manner of costs can pop up as you focus on getting your new business off the ground.

Even if you have capital reserves, most entrepreneurs will be unwilling to deplete them at the start. This reduces the liquidity of your business and puts it at risk.

It also means that you will be unable to take advantage of any business opportunities that suddenly come your way, and which require ready action to benefit from.

The case for start-up finance

Different funding models are available for start-ups.

For example, angel investors may like your business and offer you funding – but only for a stake in your business.

Another approach is to access ready business start-up finance which is designed specifically for new businesses. At Nationwide Corporate Finance we offer start-up loans with highly attractive features, including low interest rates, favourable terms, the help of our friendly and expert team and an instant lending decision.

We lend to the vast majority of business applicants, charge no early exit fees and – even better – the funds could be in your bank account on the next working day. Now that makes financing your start-up one less thing to worry about!

Take action today

Ready to take your new business forward and invest in its full potential?

We have ready start-up finance available, with an instant decision and the funds available in your account on the next working day. Click here.