Entrepreneurs who have launched their business through the Start Up Loans scheme are being offered the opportunity to apply for further funding from high street banks.
Santander will be the first major bank offering the extended round of funding and will provide finance of up the £25,000 to start-ups that have at least six months trading behind them. This second round of funding surely highlights the progress that the Start Up Loans Company has been making, helping young entrepreneurs to access funding from other sources which would previously have been closed off to them.
Here at Isis Business Brokers however, we recognise that there is more to investment than simply the cheque. This business is all about the people, and no matter how important the finance is; the people are more important. Having the right mentor, with the right skills and contacts can be vital to succeeding, and we wonder whether the Start Up Loans scheme can provide the quality of support that a smaller company such as ours is able to. No two businesses are the same, and it’s important to remember this when you have a sales rep talking to you about their ‘strategy’ and ‘expertise’. Never be afraid to dig a little deeper into a potential investor, find out about their track record, their contacts – push to find out whether they can really do the things they claim they can. For example, there is a great tendency these days for IT professionals to claim ‘web design expertise’ – a useful skill for any budding company, but there is a difference between being able to slightly modify a base platform such as WordPress, and being able to fully design and control a webpage from the ground up.
Many young entrepreneurs face serious challenges when setting up a business, not least of which being a lack of skills and experience – we have seen a worrying number of start-ups fail due to weaknesses in the management team – weaknesses which we would look to fill before seeking any investment. Setting up a business is a big decision, and we believe in doing things the right way first – so if you have questions about your management team, your funding requirements, or your business concept in general, make sure you give us a call on 01865 784462, or sign up to our free Friday consultations.