Starting a business venture anywhere in the United Kingdom is not a joke. It demands a lot. If you live in London for instance, you’ll find out that it’s not all that easy to begin a business venture especially when you’re short of funds in your bank account. However, there’s always a way out of every problem. All you need is to locate what to do and how to go about it. For all business inclined persons that actually want to become highfliers in the business world, using a seed capital is very vital especially when the fund is highly needed.
Indeed, seed capital is actually the cash you need to start off your business. Every business venture needs such a starting capital. If you’re building a company for instance, you also need some real funds to kick off the process. This is exactly where seed capital comes in.
In the UK, seed capital is available. It has been a growing phenomenon in almost every nook and cranny of the business world there in the United Kingdom. However, you need to actually discover how to go about securing a seed capital to kick-off your business venture.
The following tips will be of help in discovery how to secure a good seed capital.
Be Properly informed
The very first step in securing a seed capital for your business is for you to be adequately informed about what the stuff is all about. In the UK, seed capital acquisition is very common but you need to be very alert regularly about the current developments in the system. There are so many current issues coming out daily concerning seed capital. Hence, you need to keep yourself abreast by reading every material you can lay your hands on. Make extensive use of the internet in your research. You can also invest in business magazines to get more clues.
Discover the sources
Seed capital is all about real cash. It does not fall from heaven. You need to discover where to go for it. In the United Kingdom, seed capital is primarily gotten through angel investors based in UK. These wonderful UK angel investors are real human beings. Usually, they are affluent personalities with real resources to help you get your business on the move. Indeed, you can get a seed capital from a single angel investor based in UK especially if you’re just a single individual that wants to start a small scale business venture. On the other hand, if you’re interested in establishing a large or medium scale industry that will certainly end up becoming a very big lucrative company, you need to get your seed capital from a group of UK angel investors. Oftentimes, angel investors based in the UK normally come together to form a synergy of wealthy network group of investors. This helps them to pull their resources together. With such togetherness, they can now help individuals or company founders that need enough seed capital to get their large or medium scale business ventures off the start-up line.
Meanwhile, you can also source for seed capital from your immediate family members. Well, this is only possible when you have wealthy family members. Sometimes, some of these wealthy family members of yours do belong to the network of UK angel investors. If you have such connections you may not find it very difficult to obtain the seed capital you need. Usually the risk is very minimal if you’re dealing with a family member. Again, you can also source for seed capital from you’re your friends and other relatives. If some of them belong to the network of UK based angel investors, you then have an advantage.
However, not everyone has wealthy family members and friend. For such people, going formally to meet angel investors based in UK is the best option. You can always have your seed capital so long as you’re equal to the task you have in mind.
Again, you can get a seed capital from some banks and other financial companies. However, in this case, you may find it somewhat difficult as bank officials are not always keen to offer such capital to starters especially those who have no tangible collateral to put down.
Know your qualification
Seed capital is not giving away money. It is not for the feeble minded in business. You must have to be credit worthy before you can have a good seed capital. Bear in mind that the UK angel investors are into real time business. None of them would like to invest his or her money in a venture that’ll never see the light of the day. Hence, you need to be properly qualified to have a seed capital. Your business proposal must be properly packaged. You have to be able to defend the business plan when called upon to face the panel of the UK angel investors. You have to be able to sell your business plan to the panel. Make them realize you’re equal to the task.
Again, another qualification you need in obtaining seed capital is your ability to pay the necessary percentages needed as at when due. Most individual angel investors would like you to sign a pact stating your readiness to payback when the time comes. In some cases, you might have to reach an agreement to share the profits. In any case, just make sure you document every agreement and set yourself in motion to live up to the expectations.
Seek proper guidance
One more thing to know on how to go about getting a seed capital is for you to seek proper guidance. You need to have financial advisers or brokers who can help you. Their duty is to advise on the right source to go for your seed capital. They also help you to fill the necessary forms and complete the due processes involved in securing a good seed capital for your business.
In conclusion, you must have to be wise in investing the seed capital properly when you get it. Engage some of the cash you receive in going for market research. This will help you in developing new plans that will take your business to greater heights when you actually start off.