A great business needs two very important things to get off the ground: A great idea, and some money.
It sounds a bit crude, but without either of these, you’re unlikely to hit the ground running and start to create the business of your dreams.
Sometimes it’s the money part that holds people back. You could have the best idea and be completely unique, but if you don’t have the capitol to run it your idea could be left at the starting line.
You’ll be please to know that there are funding options available to all businesses if you look hard enough – whether that’s Government grants, Angel investors or Organisation Funding.
Government Grants
A Government grant is a sum of money awarded to your business that you don’t have to pay back. It’s usually given after applying, and your business needs to reach certain criteria depending on the grant. It’s common that your business needs to be solving a problem and meet an urgent demand.
The biggest pro of going for Government grants is that you don’t have to pay it back. Imagine being invested in, and it’s all for you to work with. You won’t have to worry about getting the money back – a big stress-reliver.
Some of the cons of these grants are that they can be very time-consuming to apply for, and you’re often up against major competition. It’s rare to find situations where you don’t have to return the investment someone makes in you, so when opportunities do become available, everyone wants it.
Angel investors
Have you ever seen Dragon’s Den? Now imagine that, but without all the TV crew and cameras. Angel investors are individuals who can provide business funding in exchange for a stake in your company.
There are some major pros to angel investors – they not only offer you the capitol that you want, but they can offer a wealth of experience and expertise that you would otherwise not have.
The con of angel investors? Well, if you want to keep 100% ownership of your company, you won’t be able to in this instance. Investors will want a piece of the pie in exchange for their hard-earned cash. You won’t give up most of your company, but the more investment you ask for, the most you’ll have to give away.
Organisation Funding
Did you know STEAMhouse got to where it is today thanks to funding? With funding from Arts Council England, The European Regional Development Fund, The Greater Birmingham and Solihull Local Enterprise Partnership, UK Research and Innovation and The Midlands Engine, we were able to build STEAMhouse to what you see now.
Organisations can offer funding for a multitude of reasons, including expanding their reach to a new audience, improving the development of opportunities for a certain area and more. In this case, they helped us grow to find a permanent home and develop our practices to help the West Midlands.
There’s very little downside to organisation funding. They’ll become an integral part of your business and will likely want a share in the profits, but it depends on the nature of the funding they provide.
How can I get funding and grants for my business?
There are plenty of opportunities for you to apply for grants and funding for your business. Keep an eye out to see what organisations are running funding places, or if your local Government body is providing grants for new businesses.
At STEAMhouse, we run lots of events to show you how easy it is to apply for funding, so keep an eye out for our next event, and you could be one step closer to your funding goals!
