There are ways to finance the first year of the business without having the all the funds yourself. Some other options are:
- Grants – development loans may be available if you live in certain parts of the UK, a random example being in Leeds at www.leeds.gov.uk/Advice_and_benefits/Grants/Business_grants.aspx
- Loan guarantee scheme - There is a scheme called the “small business loan guarantee scheme” which provides loans to start up businesses at reasonable rates. It is specifically helpful where you don’t have the assets to back a conventional loan.
- Bank loans – obviously, this is an option. Having a business plan to explain your thoughts and assets you can use will help enormously.
I have not included the now famous venture capital as while it is a theoretical source of funding, I doubt its relevance at this stage. If I am wrong, I am happy to be proven wrong on that for any reader of this.