business funding planning
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You can not start and run a business without funding. It is advisable to start planning business funding at the very beginning to avoid uncomfortable surprises. In most cases, you will be injecting money into the business for a few months without seeing any revenue.
In this article, we are going to explore different avenues to get you started, to help you create an action plan for your business.
What you will find in this post

It is a risk to invest vast amounts of money into a business with the uncertainty of getting anything in return; however, if you have planned your business well by creating a business plan, and have the drive and passion, you should have a high success rate.

Making sure you have enough funding available to get the business on its legs can be a daunting task. You may require a big chunk of money and don’t know where to look for or what options you may have available.


The idea of investing your life savings is daunting. If, for some reason, your business does not succeed, you will be left with nothing. However, this is an entirely logical way of thinking, and we would recommend only investing a certain amount so that you have some savings to fall back on.

If the idea of investing your savings is too much of an ask, then perhaps you can find some contractual work, which will help you sustain yourself and the business for some time till your business becomes self-sufficient. 

At a particular stage when you are looking for further investment, investing your own money at the start can be seen in a positive light by your investors, as it will show your commitment to the business.

Bank Loan

When starting, startup loans are available. However, the maximum you can borrow is capped at £25k. These are government-backed loans provided through brokers, and so their interest rates are minimum. Most brokers work in a set geographical area; you can find out which loan provider serves your area here.

If you require more than £25k, you will have to approach other high street banks, which may have a higher interest rate than the government-backed loans. As you are just starting, they will require some sort of collateral from you, such as a house or a guarantor. If you are unable to provide collateral, then there are some unsecured loans available. However, they are generally worth £100k and require detailed business plans.


Crowdfunding is a modern concept and is used by many startups, who lack the funding; however, they have an idea that is scalable. There are various platforms available through which you will create a pitch to a large number of people. If they like the concept, they will donate whatever amount they wish. Generally, there isn’t promise for shares, however, it’s a good gesture to provide them with discounted merchandise when the company starts running.

When presenting your business plan, make sure it’s jargon-free and has a lot of informative bars and charts so that everyone can digest it and decide if they want to invest.

Angel Investors

Angel investors are wealthy individuals interested in investing in startups that may have high chances of success. Most of the time, these individuals have run very successful businesses, and so you might be able to get some sort of business mentoring as well.

There are various organizations with a panel of angel investors, so if you don’t have any personal contacts, you don’t need to worry.

Even though Angel investors can be a great help, they would expect to be part of the board of directors, requiring constant reports.

Venture Capital

Venture Capital firms generally lookout for startups with stellar growth potentials or existing businesses who require funding, generally in the tech industry. However, they will invest in other industries as well to only those businesses who can provide enough evidence of exponential growth.

When getting involved with venture capital firms, you should be aware that even though it will be a substantial financial boost to your business, they will require a return on investment pretty quickly along with profits.

Friends and Family

Involving lenders can be daunting and bring in a lot of stress and worry. Perhaps it would be slightly less stressful if some of your family or friends could help you out. They will be more willing to have a flexible approach with you and might even offer help and support.

Although they may be flexible with their approach, they would need their investment back at some point. If your business does not succeed, you will end up having difficulties with your closest family, so make sure you weigh the options well.

Credit Cards

Credit cards should be used with caution. If you do not pay them back in the same month, you can stack up a staggering amount of interest very quickly. Therefore, it would be advisable to use credit cards only when trying to improve credit history or pay off a nagging supplier as a last resort.

Plan carefully, if you are going to use credit cards, it is a slippery slope!

P2P Lending

Unlike high street banks, P2P or peer-to-peer loan organisations provide loans to SMEs and have a very straightforward approach. It’s a simple form-filling procedure, at the end of which you will get a response of how much funding you can receive from the pool of investors. After that, you simply pay a set amount back every month. Even though it’s straightforward, you would need to have a good credit history to access this type of funding.


Figuring out the best funding options for your new venture might be the hardest part of your business planning. However, closely examining all your options will save you a lot of headaches.

Most of these lending options will require you to present a solid business plan in order to be awarded the requested funds. We advise you to start planning early what the best business funding options are for you, so that you can tailor your business plan accordingly. Remember, your business plan has to speak to your audience, too, in order to help you secure the required money.

We have written extensively on business planning, to help you compile a strong roadmap. In any case, EvoTax is there to help you; feel free to reach out to us for a free consultation to discuss how we can make your business plan and the start of your new enterprise more successful.

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About the Author

Bilal Khalid

CEO, Accountant

Bilal Khalid EvoTax accountant

Successfully running my own small business for years has taught me a great deal about the complexities of taxation and I understand all the pain points that every entrepreneur has to go through. I often found myself paralysed with fear of making a mistake and getting fined and eventually decided to take up accounting and finances myself. Today, I help other small businesses suffering through similar mistakes and I am happy to share my knowledge, jargon free!

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