Before you approach anybody for funding, you will need to work out where your business is, where you want it to go, and how much you need to take it there. If you’ve reached the point where your business requires an injection of cash, it may not always be obvious where your first port of call should be. By analysing your business – both in terms of where you are and where you want to take it – the most appropriate means to finance growth should become clearer.
Finance options include both internal sources of finance and external sources. The suitability of each of these options will vary depending on your business. Further information about each of them can be found by reading the information in this section. You can also have a look at this video:
Internal finance sources include things like cutting costs, using spare cash or offering share options - the things that you can do that don't require you to involve a third party. You should generally look at internal sources and exhaust these options before you look outside the organisation to raise money.
External sources of finance include traditional methods of funding such as loans and grants, but there are other external sources such as angel finance and more recently, crowdfunding, which could also be considered.