In these tough economic times, small businesses are struggling to keep their doors open. A recent study found that approximately 65% of small businesses in the UK were in need of funding if they were to see the end of 2019. Of these, a staggering 58% did not know how to go about securing funding from investors and banks.
Very often small businesses such as Kalusto Furniture find the process of applying for business funding to be an overwhelming process. There are actually quite a few ways to go about getting financing for a small business but many have found that the path to getting much-needed funds is not always an easy one. Business owners who have gone through the process know that you need the right tools for securing financing and that gaining those tools is often quite a bit of work
The strength of your position
The first step you should take in securing funding for your small business is to be brutally honest about your current cash flow. You need to update and rework your business budget carefully. By doing this will ensure that you always have an accurate figure to work with. This will also give your business a sense of transparency. Investors love nothing more than a transparent business model where proper stock is taken of incomes, overheads, and expenses.
Be strategic about networking
Investors are always on the lookout for business which is innovative and constantly breaking the business mould. These types of business are more likely to get noticed. If you want to get your business noticed by investors, you need to grab opportunities such as networking events with both hands. Make the most of social media channels to reach your audience and your possible future investors by building a trusted brand. Find competitors online and see how they are reaching their audience.
Don’t keep all the knowledge to yourself
IF you want to stand any sort of a chance at getting your small business noticed, you need to be involved in your local business community. Take time out of your day to share your knowledge with others in the field, whether they are part of your industry or simply other small business needing advice. In return, you should also ask for advice from others. Find out how they managed to secure funding and how they make successful business decisions. Getting the right insight into business funding will prove invaluable in the long run.
Keep a close eye on your credit score
Through various credit bureaus, lending providers and investors will be able to keep a close eye on your credit score. You need to make sure that you are always in good standing with those to whom you owe money. You need to be careful of factors which can negatively affect your score because this will affect the outcome of your funding application. You also need to know how to improve your credit score if you have defaulted in any way. Make sure you arm yourself with the right knowledge.
Be prepared to close the deal
This is the final and trickiest part of getting the right funding for your business. Regardless of whether you decided on securing funding through a bank loan or an investor, you need to be prepared. Write down all the possible answer to questions that may be posed to you and rehearse the answers. You need to ensure that you are authentic at all times. Your answers need to be genuine and you need to be compelling.