Securing business investment is essential to your corporate level strategy. The UK is a powerhouse of business growth, and Government statistics consistently show a healthy expansion in both new businesses and established companies seeking to expand. Between March 2021 and March 2022, from Companies House shows that the number of registered businesses grew by almost 4% to reach nearly 4.7 million.
Generally, setting up a new business or expanding an existing one requires finance, but where can that come from, and what do you need to help secure it? In this article we’ll look at the best sources of investment, whether you are a start-up or for business expansion.
Investment sources in the UK.
The alternatives available for business financing fall into two broad categories:
- Traditionally-sourced finance in the form of bank loans, Government grants, overdrafts, credit cards, and even investments against owned properties.
- Alternative sources such as angel investors, crowdfunding, capital start-up loans and peer-to-peer lending.
These can vary considerably in both the amount of finance that may be available and what is required to obtain it. Typically, traditionally-sourced business funding will be more conservative in the amounts being lent, repayment options and criteria for lending. You will be fully credit checked and anything that goes against you may curtail the amount you are offered or even result in funding refusal.
Private investors are typically more likely to accept business risk and, if they like your innovation or market analysis, will be for more forgiving in their analysis of you and your business. Wealthy individuals and venture capitalists such as Angel Investors typically take risks in business, but expect to see higher returns for their money. They will pore over your financial projections and look for growth opportunities.
Invest in a Professional Business Plan.
When securing investment for your company, the first thing that any potential investor will ask for is your business plan. An investor will be interested in your industry analysis and financial projections.
A meticulously crafted business plan demonstrates that you have diligently evaluated and deliberated upon the challenges that your business will encounter, and will have contingencies to deal with the rigours of everyday business issues. In addition, a business plan is essential in aiding investors in comprehending your enterprise and its business vision.
Your plan will be instrumental in demonstrating to investors that you have not only considered your market in great detail, but have sufficient insight to show that your business is worth investing in.
Of course, to be able to give this level of confidence your business plan must be credible, considered, and complete. It will be examined in the finest detail and you will no doubt be asked questions on its contents. For this reason, it is essential that you have help writing a business plan that is developed by professionals. By doing this, you can be assured that it will meet the needs of your investors, whoever they are.
Engaging with business plan writing services is the optimum way of developing a comprehensive analysis of your business and the market that it serves. A professional plan consultant can walk you through the requirements that investors will want to see and help you develop a winning business plan.
