Raising capital

An early challenge for anyone about to start in business is to convince investors or lenders to invest and lend you money. Even if you have all the finance that you require, you should ask yourself the same difficult questions that an outside investor would ask. Preparing a detailed business plan, with rigorous market research will help to convince investors that you have thought carefully about what you are doing. But you'll also need to show that you have the determination and commitment to succeed. Most people starting in business underestimate their cash needs – and a business with inadequate resources will find it difficult to attract and delight customers.

Hot topic

Businesses may get access to better funding advice, under new proposals from an independent working group. The proposed Funding Advisory Accreditation Scheme, recommended by the joint Government and Accountants Working Group, would provide banks with a list of approved funding advisers. Businesses would be assured that advisers on the list have the necessary expertise and experience to help them. See www.sbs.gov.uk/sbsgov/action/newsDetail?topicId=7000000448&year=2004&type=NEWSITEM&itemId
=7000003141&cat=SBS for further information on the scheme.