Funding your Business Guide

Crowdsourcing If you can’t fund from friends or family, then consider crowdsourcing from the public. Lots of people already use platforms for raising money for charitable causes or asking for personal or community needs such as health, education, the arts and sports. By taking advantage of sites such as Kickstarter, Crowdfunder or Gogetfunding, you could put your service or product before a potential market audience. If you can align your business with a personal need you could also look at sites such as GoFundMe or Just Giving. These platforms work in different ways so it will be worth doing your research. Some allow you to offer rewards, take donations for your idea or need, get lending (see below) or offer equity in your business. For the non-equity options this can be a good way to get debt free funding, keep ownership of your business, grow a customer base and test the market for interest in your product.

Tips to Lending from Family • Pitch as though they were an investor, bank or lender. • Decide if this is an investment, a loan or a gift. • Have the terms in writing including the amount, interest, repayment schedule or security offered. • Make your payments on time and consider setting up a standing order so payments aren’t missed. • Keep them updated with the developments of the business so they journey with you. • Be honest if you are struggling to repay before your next payment. By looking to friends and family you can not only bring necessary finance to your business but also emotional support and encouragement from stakeholders who want to see you succeed. You may not get high levels of funding that a bank may offer but like bootstrapping could save yourself some cost at a crucial stage of your business.