Finding the right start up finance – why you need an experienced financial adviser

Finding the right start up finance – why you need an experienced financial adviser

Building a start up business is confusing: particularly the finance.

As an entrepreneur or first-time business owner, you may have cooked up the best business idea since Sir James Dyson decided that vacuum cleaners needed redesigning. But a great business idea needs funding and a good head for financial management.

So, how do you get the funding you need? And who can give you the advice you need to set the wheels of finance in motion?

1. Pitch and protect your start up idea

To begin with, you need to encapsulate your start up business idea. This means creating a business plan, right from the start, that lays out the basic concept behind the business, your sales strategy and how you aim to turn a profit.

Ultimately, any investor or third party wants to know how they’ll get their money back – so a clear view of the business and your projected revenues will be vital to getting funding.

You’ll then need to pitch your business idea to a number of third parties, whether that’s banks, lenders, private investors or even crowd sourcing investors. And that means taking great care to protect your intellectual property. You’ll need legal advice to make sure you have the relevant patents and intellectual property protection in place well before you talk to any third parties.

DIY option? You could write your own start up business plan. But you’ll end up with a more effect plan by talking to our advisers and legal contacts right from the start, as we highlighted in our recent blog.

2. Talk to a financial adviser

Once you’ve sorted out your business plan and the legalities of protecting your idea, your next port of call is a funding expert.

As financial advisers, we will help you find the most appropriate source of funding, and will take a long-range view on the right kind of funding for your business. This means making sure that equity isn’t lost and that there are no hidden costs and penalties. We’ll also work to ensure you’re not tied up with personal guarantees as part of the deal or that your business assets don’t end up being charged.

But the fundamental benefit is that we’ll present the business case on your behalf in the best possible light – and that can open doors to funding that you never thought would be available.

By applying our experience, our network of funding contacts and our commercial insight of your business, we can help you get the money you need to take that idea from the drawing board to reality – and always with that long-term view in mind.

DIY option? You can, of course, go straight to the bank and ask for a loan, but our experience as financial advisers means you’re far more likely to find that funding fast with us.

3. Get a reality check

There’s a secondary, but equally important reason for consulting a financial adviser at the very start of setting up your new enterprise or start-up. And that’s their ability to analyse the reality of your business idea – does it make financial sense, or is the whole enterprise just pie in the sky?

We can look at your existing business plan and advise whether you will actually get funding – and that kind of ‘green light’ is absolutely vital before you throw yourself headlong in the project.

Checking the viability of funding at this early stage helps you to save time, energy and a whole lot of effort – making sure these efforts will be channelled more usefully into the right areas of the business.

DIY option? There isn’t one, other than crossing your fingers. Our knowledge and experience of the market means you’re far better off consulting us first and getting the confidence you need in your business idea.

How we can help start up businesses

Having an experienced financial adviser on-board is key to getting the funding and investment your new business requires. Our commercial insight and financial knowledge brings you the comfort you need that your business idea has legs (and will pass the stringent tests that lenders and investors will throw at it).

At Caplan, we specialise in advising start-ups and new businesses on the thorny subject of accessing finance. Our outsourced FD packages mean we can offer you the right level of strategic and financial guidance, whatever the size of your new business.

You can find out more about our financial advisory services on our Outsourced FD page. Or you can contact us directly for a chat about funding for businesses – get in touch here.