Starting a business:

many entrepreneurs trying to get a business off the ground are finding it hard to raise money, here we will take a brief look at how this may be achieved.

the most easily available business to set up is the increasingly popular franchise, the number of these opportunities around is mind confusing, that being said if you have or can raise from £5000 to £100000 depending on the type and size of franchise you undertake, then it is surely one of the easiest ways to set up in business as everything from training to stock is supplied to you on a plate.

should you feel that franchisees are not the thing for you, and you have or wish to start a fully independent business, but need the capital to get started then their are ways to go about it, below are a number of  methods i not only believe work, but have helped clients to implement.


property:
using property is a simple way to make money at any time, regardless of whether the economy is doing well or not, their are two basic systems in use by those using property as an income source.

flipping a property is possibly the easiest and quickest system around, oddly enough it is mostly used by businesses rather than individuals, why it should be the case is possibly due to the fact that the system involves a high turnaround rate with a one off financial return. (flipping is merely buying, fixing up and reselling it for as much as you can as fast as you can, for profit).

buying to let, this type of business is mostly embarked upon by individuals or couples, although not exclusive to individuals or couples. the reason for it’s popularity among the afore mentioned section of business types is due to the long term regular income streams available over a number of years, well into retirement in fact. with the added bonus of additional refinancing opportunities that will present themselves at intervals when equity has been accumulated, this is a winner all day long.

start-Up:
A new start-up business can be anything at all, there is simply no limit to what it can be or your plans for it. new businesses are however notoriously high risk due to their extremely high failure rate, the complete lack of any track record in terms past history also
tends to make all but the bravest of investors shy away, there are ways around this however.

take over:
taking over an existing business is possibly one of the most under rated ways to set up in business yet is basically for the most part very straight forward, an existing owner looking to sell may well over intensives such as, accepting a deposit payment and allowing you to pay the remainder by weekly installments over a number of months or years, depending on what can be agreed.

it is not uncommon for a seller to offer more than generous goodwill in terms of any existing stock included in the business, this can extend to suppliers and banks by way of putting in a good word or allowing you easier payment terms, in the form of how you can pay them for the purchase of their business.

take over (failing business):
failing businesses are practically given away, and as such can be a very good way to get a business off the ground, if a failing business is one in the same or similar field as one of interest to you, then this can be ideal.

problems you come across with taking over a failing business are problematic in the extreme, depending on it’s size you can be dealing with anything from rut digging management oblivious to their plight, to someone fully aware of their problems but unwilling to make the necessary changes. with these types of attitude being prevalent you will do well never to pay the asking price for any failing business.

as a failing business is usually coming with more baggage than a luggage wholesaler it is wise to embark on this type of venture as part of a team of investors who are taking a punt on making it. Banks will rarely provide financing for these kinds of deals.

sellers under these conditions can be highly motivated, the reason is often based on the fact that they can’t believe their luck at a chance to get out and either make a profit or get away with minimal loss.

If you can convince a group of investors that you have the skills to turn around a bust or almost bust company and turn a profit, you may be winners.

seller options:
where a business seller is willing to offer financial incentives for you to take over, there are several options.

asset financing allows for the sell off part of the business, releasing money for partial financing. items such as vehicles, equipment, etc are common, basically anything owned by the business.

producing a buyer for part of the company or its stock, or arrange a deal with a supplier who is willing to offer special credit terms to help you in the event of taking over a business so that their sales and yours will continue seamlessly.

financing Options:
money to purchase a business is available from a number of primary sources - banks, sellers, and outside investors. Each source has its advantages disadvantages and requirements. raising money for a business means doing what it takes, and often involves all or some of the following: selling assets, borrowing money from family or friends, applying for government grants, maxing out your credit cards, using and extending your overdraft, using venture capital, securing loan against a property

the different sources of raising money offer multiple ways to achieve the same result, which is to gain enough money to buy or set up a business.

combining sources and methods, and the type of business you choose to establish depends on how you best proceed.