raising finance for your business

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Raising Finance for your business

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Post on 22-Nov-2014

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This is a presentation that takes you through the process of indentifying costs so that you can determine the amount of money you need to raise for your business. This presentation by www.optimise-gb.com also identifies where you can go to raise finance. We wish you the best of luck. Simon Misiewicz

TRANSCRIPT

Page 1: Raising finance for your business

Raising Finance for your business

Page 2: Raising finance for your business

Sources of finance

There are many places that you can go to raise Finance for your business

Bank Overdrafts Bank Loans

InvestorsFriends & Family

Page 3: Raising finance for your business

Sources of finance

Bank Overdrafts

Advantages

-Short term financial support to get started -Getting money from the bank in this fashion is relatively fast

Downsides

-Can be expensive with high interest charges -Banks may require personal guarantees

-Interest rates may be variable so can fluctuate over time

Page 4: Raising finance for your business

Sources of finance

Bank Loans

Advantages

--Borrowing is for a longer period of time -The rate of interest can be fixed and you can forecast your repayments -Once paid back you still have full control & ownership over the business 

Page 5: Raising finance for your business

Sources of finance

Bank Loans

Downsides

-Can be expensive due to the levels of interest -Certain banks may wish to spend time with you to understand the business and request financial reports pulling you away from your customers -Banks may require personal guarantees

-Repayments are not usually flexible and will require you to pay a fixed amount of the agreed term -Loans may be secured against assets of the company and you could lose assets if loans are not repaid

Page 6: Raising finance for your business

Sources of finance

Investors

Advantages

-Investors may provide some support to you in the running of the business -Investors may take more risk and invest more into the business compared to banks

Downsides

-Investors may take some time to reach decisions about your business  -The cost of investors may be considerable if not by way of interest returns but by way of their ownership in the business. -Your decision making process may be slower if they need to be approved by the investors

Page 7: Raising finance for your business

Sources of finance

Friends & Family

Advantages

-There may not be such rigid ties to the administration of the borrowing compared to bank and investors -The arrangement of money may be quicker than other borrowing options. -Invariably the cost of borrowing will be cheaper than other arrangements

Page 8: Raising finance for your business

Sources of finance

Friends & Family

Downsides

-Unless agreed at the start the amount of interest or the time to repay the debt may be disputed -Debts between friends and family can affect relationships especially in troubled times. -The length and valuing of borrowing may not be stable as it depends on their circumstances not just yours.

Page 9: Raising finance for your business

How much do you need?Before you seek Finance be clear of how much money you need.

What type of costs should you consider?

Plant & Machinery Stock / products

Accountancy / tax costs

Office costs including furniture

Premises leases, refurbishment, rates,

utilities

Employee / recruitment costs

Page 10: Raising finance for your business

How much do you need?Before you seek Finance be clear of how much money you need.

What type of costs should you consider?

Advertisement / promotional costs

Web site / e-commerce

Legal costs: company formation, patents,

licences etc

Transportation

Stationery costsGraphic design /

business logos etc

Page 11: Raising finance for your business

Cash flow and profit forecast

Once you have established what your costs will be, plan when money will be spent.

Always add 20% of contingency costs as you may not be able to identify all the costs in a business plan

http://www.optimise-gb.com/business-templates

Page 12: Raising finance for your business

Cash flow and profit forecast

Page 13: Raising finance for your business

To ensure that you have covered all costs and accurately projected your revenues write a business plan…

See our web site for a free business plan template or purchase business writing software from:

http://www.optimise-gb.com/business-templates

Writing a business plan

Page 14: Raising finance for your business

For solutions

Contact Simon Misiewicz throughEmail: [email protected] or