Affording Your New Business

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If you are thinking of starting up a new business, you are probably very excited to just get going. But there are many things that you need to think about first of all, some of which are likely to be especially pertinent if you actually hope for your business to be as successful as you would probably hope. One of the major elements you can’t overlook is money, and in particular the issue of how you actually go about getting the initial funds for your new business. Of course, keeping things simple and starting small will mean you don’t have to get hold of as much, but you will still need to try and source whatever it is you need to get. In this article, we are going to take a look at some of the best ways to be able to afford your new business, and so get it up and running in no time.


One of the better ways to get funding, and a way that most business owners are secretly hoping for at all times, is for someone to come swooping in and offer you some considerable investment. These so-called angel investors are often a great way to receive a considerable amount of money into your venture, and it is certainly one of the best ways you can hope to get that money you need in time. But it is necessary to make sure that you are not relying on this, as even for great business plans it is relatively rare for this to happen. That doesn’t mean you shouldn’t aim for it, however: it is absolutely worth shooting for the moon here, and you will find that it is something you need to think about if you hope for your business to do as well as possible. But how do you make sure that you are keeping your chances of success high?

When you approach investors, you have to be absolutely solid on your pitch. You have to know how much money is going to go in, what the business is going to do with it exactly, and what the investor can expect in return. Usually this will be a certain percentage of the business, ranging anywhere from 2% to around 25%. As long as you are both happy with the percentages, you should consider this kind of investment for your business. It can be a great way to really get things going fast, and if yours is a business which might need to do that with a great deal of money on board, then angel investors could be the way to go.


The more traditional means of getting the money for a business is to take out a loan. Even though this is something that is much easier said than done, and you might be surprised to discover that there are many different places and ways you can get a hold of a business loan today which could help your business tomorrow. The most traditional means of getting a business loan is through a bank, which is still a secure and fine way to go, but more and more people are finding it difficult to be accepted by banks these days. You will generally need to have a pretty close to perfect financial history, which few people have these days, and you will need to passionately make your case as to why you need the money.

John Schnobrich
If you get a loan through other means, however, you might not need such a good history, nor will you necessarily need to make a pitch. This is because you might be getting the loan through a loan provider, rather than a bank offering a business loan. With a loan provider, you are not appealing on behalf of your business, you are merely seeking the loan for its own sake, which you will then put into your business. You can often get a fast loan this way, and it could be just the injection your business needs to get started. Make sure, as ever, that you only borrow what you can actually afford to repay, and try not to be too overly-ambitious on that front if you can help it.


It might well be the case that you have some considerable savings sitting around somewhere, which you might want to use in order to get your business up and running. Such savings are hard to spend, because the last thing you want to do is accidentally end up wasting that money, but you will need to think about what you are going to do in order to get your business started somehow, and if you have money sitting there then that is obviously going to be an option. Before you dip into your savings, make sure that you know fully what you intend to do with it. That means that you have drawn up a strict, tight and detailed business plan, that you have researched everything you need to research about what you are going to need to spend, and that you know exactly what kind of return you can hope for. You won’t want to do any less than this before you start spending your hard-earned and well-saved cash, so make sure that you are really diligent about it. If you do it right, this can be one of the better ways to get your business off the ground, not least because you won’t owe anyone a penny.


Some people might be in the fortunate position of being able to seek help from their family. If you are in such a position, then this is something that you should definitely think about, as it can be a relatively stress-free and low-risk way of borrowing money. If the worst comes to the worst, at least you only owe the money to your family and not the bank. That being said, you need to be careful not to let that money go to waste, and again it’s a matter of planning carefully before you do anything.

How giffgaff transformed the telecom industry in the UK

I have not been compensated for this post.

As someone who is keen on saving money and making money, I am always looking for businesses that help to make that a possibility. A business I always run across is giffgaff. Whenever I see posts on forums or social media about people reducing their phone plans, giffgaff is the brand mentioned. They offer services that people need, at affordable prices.

They are often people’s number one choice for cheap SIM only deals or pay as you go phones. They are popular with moneysaving forums and individuals alike.

It is easy to say that they have transformed the telecom industry but how exactly have they done this? They recently put together an infographic, telling us why. You can see it below but it is also linked here.

It is amazing that they have been nominated by Which? Recommended provider for the seventh consecutive year! I also think it is pretty amazing that £700k has been donated to various charities since 2010!

When I leave my current provider, this is definitely a brand I am considering. They don’t have customers – they are called members and they help to run the forums, inspire the community and spread the word about the brand. The company also give back to members who help run parts of the business – twice a year they are rewarded via ‘Payback’ which allows them to convert the ‘kudos’ they’ve earned into call credit, cash or a charity donation.

Are you on giffgaff?

How You Can Keep More Of What Your Business Makes

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It’s the eternal battle, between the hard-working business owner and the taxman. It’s always been the case but lately, there seems to be a trend that we could all do without. The UK is at its highest taxation level since modern records began. This brilliant nation of innovation and small businesses is currently undergoing some strange happenings. A Conservative is Prime Minister but there’s nothing Conservative about her. Businesses should have their corporate tax income rate slashed to around half of what it is to make sure there’s more chance of success. We all know what happens with the profits businesses make. Most of it goes to tax, the rest goes back into the business. You’re only able to fund your next products and services if you have the money to pour into your research and development department. So how can you keep more of the money you earn as a business?

The proper classification

First of all you need to make sure you are in the proper classification. Just because you may earn a lot of profit, does not automatically fit you into the ‘large’ business category. It’s complex, but HMRC has a system whereby you register your business and according to your income bracket and the number of people you have hired, you’ll be put into one of many categories. A micro business is usually no more than 5 or 10 employees. A small business can be up to around 10 to 50 employees, while also having a base or two abroad. A medium sized business can be from 50 to 250 employees. Anything above 250 employees is seen as a large business. And even still, if you’re a large business but only domestic, you can’t be seen the same as a multinational corporation. So make sure you know which category you are in.


Fight your corner

The government is not an entity that cannot be challenged like some holy church. You should always know what your rights are as a business. If you’re ever in doubt of being treated fairly by HMRC then speak to solicitors who specialize in business. It could be that a case is being brought up against you by a customer and the court system has the final say. You’ll need a legal team to fight for your reputation to not be slandered. Maybe you were taxed too much and HMRC categorized your business wrongfully. Then you will need to take the case up in court to get your money back. The solicitors handle business taxation cases all the time and know this area of business law very well.

Always be lean

Small businesses have a tendency to try and expand too quickly. Safety does not always come in numbers and hiring too many employees can eat away at your profits. Instead you should hire employees with multiple skills which can be implemented in your various departments.

The amazing nation that is the UK, is the centre of innovation and the flame of business spirit. However you need to fight your corner and make sure you’re not being taxed to the hilt by HMRC.