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tambam
03-07-2004, 07:32 PM
I am 19, not great a paperwork, but have a wicked business idea. My mum has cash and business skills and experiance. If she give me the money with strings attached am I likely to quallify for funding for my share of a bussiness. I would want to put at least 60 percent of the funding to ensure I retain control. is it a bad idea to go into partnership with yo mama?

Statler
05-07-2004, 10:30 AM
Hi,

Only you can decide if it is a good idea to go into partnership with your mother. Will you be able to work together? Will you be able to seperate work issues from your personal lives?

Lee

tambam
05-07-2004, 09:53 PM
my mama and I have a cool relationship so far. When it comes to finiace or business we have a adult relationship. (she don't want me to be no scrub)What I wanna know is will I qualify for under 30 grant funding

Statler
06-07-2004, 09:33 AM
Grants are financial assistance for specific projects, eg the production of promotional materials or the restoration of a shopfront. The obvious benefits of grants are:

• they don’t have to be repaid, unless you fall foul of the grant criteria!
• they cover some of your project costs, so free up money to be spent in other areas of your business

However, grants have many downsides:

• they are only available in certain areas of the UK and must be used for a specific project – unlike loans, grants can rarely be used for working capital.
• availability is limited, competition is fierce, and often no more than 20 or 30 businesses can receive assistance before funding is fully allocated for the financial year.
• you will be expected to meet at least 50% of project costs out of your own pocket, so grants are not ‘free money’!
• the application process is often slow (three months and upwards in most instances) and it is unusual for grants to cover costs in excess of £5,000; often they will be for smaller amounts, usually between £250 and £1,000.

Before applying for a grant you should carefully weigh up your options. If you need working capital then perhaps it would be better to apply for an overdraft. If you need money for a variety of business purposes, eg stock, equipment, etc, then perhaps a loan will be better.

The Business Link website contains some useful information on grant funding and other forms of financial assistance:

http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858790&r.s=tl&topicId=1073866776

Lee