April 12, 2022
Congratulations on deciding to start a new business! Entrepreneurship underpins the business world, irrespective of your location, and it's people like you with great ideas that help to inspire future generations and boost the economy.
Of course, whilst you can indeed start many businesses on a shoestring budget, there are times when you need significant capital investment to get started.
If you're wondering how to pay for things in your startup business, check out the following five ideas and concepts to give you the inspiration you need and unlock potential funding sources:
Most people that start a business have to pay taxes. As you've probably discovered, several different taxes exist depending on your business's legal structure, profit and turnover, and even your location.
You probably don't realise that you can drive down your tax liability and effectively free up extra capital for your business.
For example, R & D tax credits can be helpful if you're developing a new type of product or service, and setting up a limited company can be more tax-efficient than operating as a sole trader.
Did you know that you could set up a new business and partly or wholly fund your initial costs with someone else's money? If you're thinking of a loan, think again because business grants can give you the capital you need without worrying about paying the money back!
Public and private sector grants exist, so it's worth seeing which ones apply to your startup. Once you do that, create a fantastic grant proposal to boost your chances of acceptance.
What is an angel investor, you might ask yourself? Angel investors are individuals (or groups of people) with money to invest in fresh new brands that they feel are most likely to offer a high ROI.
A famous example of angel investors is the TV programme Dragons' Den. Only you don't need to pitch your brand in a TV studio! Many people and organisations help provide the funding new brands need to launch, typically in exchange for a share of their businesses.
If you don't like the idea of giving away part of your new business but still want to explore unique ways of funding it with other people's money, another idea to consider is crowdfunding.
You could pitch your brand's idea for new products or services to potential customers, and if enough people pledge to buy them from you once you launch, you can use their money as startup capital to produce the goods and services they want to buy.
One final idea involves gaining sponsorship for your startup business. Established brands are always keen to grow and want to explore new ways to do so that will likely give them a competitive edge in their markets.
Having an established brand sponsor your startup, or using what you sell as part of what they do, is a fantastic way to boost your brand awareness and drive your sales.
