What funding is best for your business?

THE SMALL BUSINESS HEROES GUIDE TO SMALL BUSINESS FUNDING SELF FUNDING CROWDFUNDING GRANTS INVESTMENT LOANS Start-ups who don't want to or can't get Those willing to give away equity and/or looking for experienced Anyone embarking on a business project that needs funding Businesses in need of a one-off cash Businesses in need of a cash injection for a project BEST FOR injection to get off the ground or to grow investment or bank loans. Good for simple, self-sufficient business models stakeholders Banks and building societies, but also other public and private lending institutions WHERE DOES Your own assets or Government-backed Individual angel A 'crowd' of backers all willing to invest a small amount of organisations who are responsible to deciding who is awarded money savings, or money from friends or family THE MONEY COME investors or venture FROM? capitalists money in your project DO I RETAIN CONTROL OVER Yes Yes Yes No Yes BUSINESS DECISIONS? Easy – so long as you have the existing funds/assets Difficult – convincing a large group of people to support you can be hard Difficult – grants often have strict criteria and Difficult – pitching is time-consuming and competitive Moderate – many banks and other HOW EASY IS IT TO SECURE? are very competitive organisations are willing to lend to small businesses DO I NEED TO GIVE Dependent – some crowdfunding projects promise a return in equity to backers AWAY EQUITY? No No Yes No DO I RECEIVE MENTORING AS No No Sometimes Yes No WELL AS MONEY? WHAT LEVEL OF PERSONAL High Low Low Moderate High FINANCIAL RISK IS INVOLVED? WILL IT SUPPORT MY MARKETING No Yes No Yes No AND NETWORKING EFFORTS? DO I HAVE TO PAY IT No No No Yes Depends on the type of crowdfunding BACK? WILL I HAVE TO PUT IN MY OWN MONEY Yes Usually Usually Usually No TOO? IS IT USEFUL FOR Yes No Yes Yes Yes B2B PRODUCTS OR SERVICES TOO?