View Full Version : Financing the beginnnig stages...
22-11-2005, 05:24 PM
Starting up a franchise/ property company. Completed my business plans and have sent it to my investment broker whom is excited about the venture and knows people who would be interested. This will take time however for large amounts of capital to come into the business. I'm 21 and have looked into various grants, unfortunately none helping me out. I don't believe that I am elible for the Prince's Trust as it appears that they help only individuals in disadvantaged circumstances. Also after a consulting a my local business advisor, they told me there they (the government) do not offer grants in this area (Wychbold- Worcestershire). One possible reason why there are no new businesses opening up in the area. As I am young, I like many others, hold no real assets, so I on the assumption that going to the bank would be of little value. I realise that family and friends are one option open to me, however, I would prefer other grants, if possible.
Many thanks. FW
22-11-2005, 06:24 PM
Its a tough one - what limited grants are available do tend to be aimed at the unemployed and genuinely needy.
You say this is a property company, which suggests a serious amount of £££ required,
Is it however possible to start in a small way (doing an awful lot of leg work yourself) and then putting together funds yourself from your profits to date? To put it bluntly there is bug.ger all point having a business plan that you can’t even come up with the seed finance on, so draft something within your ability to finanace.
Banks will generally match your investment, however if secured on property you may of course be able to get great funding, although you age will be a factor.
Generally speaking if you are talking tens of thousands and you have nothing then I would plan something smaller. If you are only talking a few thousand, then you should be able to come up with this sort of money by donning your Pizza Delivery hat and working obscene hours. What’s more brainless dead end jobs are great for thinking time and help you appreciate the value of the folding stuff like nothing else.
Sorry I dont have a magic wand for you.
22-11-2005, 07:03 PM
Thanks for you reply. Its ashame you have no wand. I am only looking for grants of a max of £10k, until the large amount comes in. This money will only provide expenses till the large investment comes in.
Its ashame about the government not giving grants to those who are "fortunate." Maybe the government should promote entrepreneurship a little bit more and not send excessive amount of people to university.
I was more wondering if anyone knew more about corporate sponsorship etc.
Unfortunately James, I don't have the time to work obscene hours in a brainless job. This venture does take up all of my time. I could think smaller, however the people I am working with, are excited about what is planned. Anything smaller within my field would not interest them. Looking for grants etc is a way of funding train fares and other expenses over a few months.
The other option is to continue to fund the company through personal capital. However, if a grant/ scheme is available I would like to take, in other words I wouldn't mind taking on whats on offer... nothing by the look of it though!!
22-11-2005, 08:33 PM
Apply for Dragons Den? :D
Look for venture capital investors?
Move to an area which does grants?
Ask friends and family to invest / loan you the money?
I'm not quite sure what your planning, but lets say for example a certain company was likely or could receive alot of recurring trade from you because of this venture, how about approaching them to invest (maybe 15/85 to you) for the full figure, and in contract they will be your sole supplier for X years of X products/Services. (I'd be interested in such a deal so I think others would.)
I can understand you might want to get this running asap, but if you delay by a year, save £5k (which is do'able) write a great business plan I'm sure the bank will loan you £5k.
Or as you've said, personal funds as you go, which doesn't leave much contingency money should the need arise.
22-11-2005, 08:59 PM
Are you sure that the Princes Trust is only for the more
'needy' ? I have a friend who went there last year and got a lot of help from them in both the financial and admin side of things.
Have you been in contact with them ?
22-11-2005, 09:22 PM
Dragons Den... Fantastic programme! Its not a case of finding the venture capitalists, I am able to do this through my broker. I've considered moving the Holdings company to a place which does grants, for example Birmingham. It is a good idea, one that I may do.
Your fifth point is a point that I have already began to pursue. I am planning to create a new restaurant franchise. Opening my first restaurant mid-2006, followed by 3 more in quick succession. I'm currently approaching wine distributors currently to secure some of the finances but also open to other suggestions.
Your web site is currently under construction... what kind of site installations do you do?
22-11-2005, 09:23 PM
I havent contacted them, it is just the 'vibe' I got from their website and my local business advisor agreed.
22-11-2005, 11:34 PM
Hi Fred ':)'
Well, I suggest that you get in touch with them. When i spoke with our local business advisor ( who also used to work for the Princes Trust ) he suggested we go and see them. It didnt work out in the end because I have a business partner who is 34.
We now help out on the mentoring side of things with young people starting up.
Also I know people who the Princes Trust have helped out and they were not in a real needy situation.
I think it might be worth giving them a call - they can only say no and in business we all have to get used to that !!!
23-11-2005, 09:54 AM
Lets get this right Fred, you are looking for a grant to fund your personal expenses over the next 6 months as you are working on this plan full time and have no other income?
If that is correct I think you need to come back to reality here, there is no way anyone is going to fund you just to planning your business if you don’t have the commitment to take a job. If you consider you business planning to be your ‘day job’, then you cant get a more "second job" friendly activity than waiting tables every night and at the weekend which is surely also going to help in your businesses if it is ever launched.
Many start-ups on this board hold down a full time job, and do everything at the weekend/evenings on a shoe string. I know this as I do their tax returns!
23-11-2005, 11:46 AM
Are you planning to start a property company and then a chain on restaurants?
23-11-2005, 02:07 PM
I have recently set up and have had funding from the Prince's Trust; I would not say I was from a disadvantaged background, my husband is working as a teacher. The only criteria was that I wasn't currently working and didn't have enough of my own funds.
I actually got the impression that they were keen to give me more than I needed so I would definitely apply to them, they will give you lots of useful advice and contacts anyway.
23-11-2005, 02:32 PM
I recently met a rep from CENTA - the Camden arm of Business Link - she told me that all the grants at the moment were being targeted towards construction in the East of London for the Olympics - leaving everyone else a bit screwed!
23-11-2005, 04:01 PM
I would like to thank you for your advice. From both of your responses I do not feel that you have fully understood me, for that I must only apologize. I feel that you writing another entry post in this thread would waste both your valuable time and my time reading it. I was unimpressed with you saying that I am looking ‘for a grant to fund your [my] personal expenses over the next 6 months’ I found it quite rude and somewhat ignorant. All expenses will be company expenses. I am a person who likes to move in a forward direction, I do not like waiting for things to happen. The funds of UP TO £10k would fund my company expenses (train fares, meeting rooms, telephone bills etc) for approximately three months, as this is approximately the amount of time my broker has said it would take him to raise the further capital required. Obviously these expenses are and will continue to be accounted for, and every expense will be spent for the company.
As I have said in a previous post, I have already completed my business plan. I am looking for a grant etc. to fund me whilst the first main phase of investment comes in. I would like to use my resources to it fullest, if a grant is there due to my personal circumstances, if it be my age, unemployment, or upbringing, I will obviously look into the matter further as it would help the company as a whole. James these company expenses are not free, and they are not cheap, writing business plans are time consuming, but cost little.
Many Happy Returns,
23-11-2005, 04:04 PM
I have planned to create a property and franchise organization through a unique chain of restaurants.
23-11-2005, 04:10 PM
Many thanks for your advice, I shall contact them this week.
Good luck with your venture, and your forthcoming sales pitch in Newcastle.
Cheers for the word of warning!!
23-11-2005, 05:57 PM
Originally posted by fredwalker
The funds of UP TO £10k would fund my company expenses (train fares, meeting rooms, telephone bills etc) for approximately three months, as this is approximately the amount of time my broker has said it would take him to raise the further capital required. FW
I may have missed the point here too. Are these expenses for the business planning stages or its for the actual running of the business.
If its for the running of the business then you could borrow but if it is for the initial planning then you may probably need a marketing or research loan/ grant. i do think Princess trust do provide these but it will be a very low amount.
Why would you also want to borrow after three months of the initial borrowing. Why dont you just go for it once. Its stressful and takes time to apply for funding. If you need to the money in 3months time you may need to start apply now esp if you using organisations such as Princess time.
23-11-2005, 06:48 PM
Woah there tiger, your may have explained your position badly, and I may have misunderstood your post. You have to remember I can only make a comment based on what you post, and I just don’t understand what you are trying to do.
I post here primarily to help people like you (I dont get paid, this is for kicks) much of the time I like to encourage however sometimes the best thing is a large "thwack" with the reality stick for which I rarely get any thanks, but occasionally I do get a sheepish email 6 months later saying "thanks for the reality check" which makes it worthwhile.
I could well be wrong that you need a hard “twack”, and I hope for your sake that I am but nothing you say makes any commercial or practical sense to me.
23-11-2005, 06:53 PM
I will contact the Prince’s Trust asap. That is the general opinion that I have found via both this forum, and other advisors. Also to talk with the bank and go through my plans with them and discuss the possibility of a business account with an overdraft. The reason why I haven’t continued these two lines originally was after visiting the Prince’s Trust web site I found it only wanting to help the less fortunate. I will now, however, discuss my situation with them directly. Also, initially, I believed that going to the bank would be fruitless, mainly because I have no property asset as of yet.
The expenses are for running the business until further capital arrives.
23-11-2005, 07:12 PM
Many thanks once again for your input. I must again apologize for not making myself clear!! I shall, in six months, give you an email on an update, either apologizing sincerley, or maybe, hopefully, sending you and invite to an opening.
Either way, I must say, thank you for your advice.
Anyway, thanks for your time,
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