Six ways to fund your business diane shawe business show
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Transcript of Six ways to fund your business diane shawe business show
a revolutionary way to raise funds
NEW FUNDING PLAYERS
WWW.AVPTGLOBAL.COMPresented by Diane Shawe CEO
a revolutionary way to raise funds
Diane Shawe M.Ed
Founder and CEO of Academy of Vocational & Professional Training Ltd.
Membership: IOD, FSB, PSA, IFL,IEEE
Named VIP member by Cambridge Who’s Who: Excellence in Online
Training 2012
Entrepreneur, Consultant, Author, Speaker. Winner E.B.B.W. Award 2003
AVPTGLOBAL is a Globally Accredited Academy provider of over 390
Soft Skills courses using a cutting edge online Learning Management
system to supply fluid transferable and live curriculum supported by
qualified Virtual Tutor Facilitators both in the virtual and traditional
learning environment.
BBA, M.Ed, IEBE,MGHT
Diane Shawe CEO
SIX WAYS TO FUND YOUR BUSINESS!
Category: Finance , Education, Enterprise in
Education
Friday 7th June 2013 13.15pm
NEW PLAYERS IN BUSINESS FUNDING
FUNDING YOUR BUSINESS WITHOUT A BANK LOAN
GRANTS
MICRO LOANS – COMMUNITY SCHEMES
We need Virtual Tutors and we will pay you
ENTERPRISE FINANCE GUARANTEE
FUNDING CIRCLE
BORROWING AGAINST ASSETS✓
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CROWDFUNDING
HAVE YOU COMPLETED YOUR BUSINESS CHECKLIST?
REGISTER FOR OUR 3 HR BOOTCAMP AT
STAND 330 £9.99 PER SECTION TODAY
12 STEPS TO PREPARING YOUR
BUSINESS DETAILS
YES NO
1. The Business Plan
2. Developing your USP
3. The Perfect Pitch
4. Adding Value
5. Calculating your prices &
worth
6. Create your brand
7. Design your business process
8. Use Social media
9. The marketing plan
10. Goal Setting
11. Working on yourself
12. Raising the finance
Total 3 Hour Bootcamp
With bank lending figures continuing to fall, thousands of entrepreneurs are looking for alternative sources of
funding to get their business off the ground
YOU WILL NOT SUCCESSFULLY RAISE THE
FINANCE FROM ANYONE IF YOU DO NOT
HAVE ALL THE ANSWERS IN ADVANCE TO
DEMONSTRATE THAT YOU KNOW WHAT
YOU ARE DOING!
• Over 60,000 people have raised millions of
dollars on Indiegogo in over 200 countries
worldwide.
Looking at the trendsWhat is happening in crowdfunding
When you are happy with your business plan, it
needs to be turned into a professional presentation,
which should communicate memorably what the
business does.
If the core purpose cannot be explained in 30
seconds, the pitch is too complicated and investors
will lose interest before the client has a chance to get
into the supporting facts and figures.
PITCHING FOR FINANCETHE PRESENTATION
The questions the investors might ask should be
anticipated and strong well-researched responses
prepared. Once in front of the potential investor, the
approach needs to be open and not defensive.
There will be detailed questioning and the
entrepreneur and his team must be able to
demonstrate why their skills and experience will justify
the risk the investor is being asked to take
HOLDING YOUR NERVETHE PRESENTATION
The time frame is also crucial.
How long do you have to raise the money?
And what risks are you prepared to take in order to
get what you need? For example, are you prepared to
use your own money, invest relatives and friends’
TIME FRAMESHow long do you need the money for?
Crowd funding and CrowdSourcing
1 Crowdfunding
What is Crowd sourcingWhat is Crowd Funding
21
Crowdfunder is a new
way for people to pool
small amounts of money
to back a good idea or
project.
If you need funding for a
project or idea;
Crowdfunder really is a
no-brainer.
Today, crowdsourcing has
transferred mainly to the web.
The web provides a
particularly good venue for
crowdsourcing since
individuals tend to be more
open in web-based projects
where they are not being
physically judged or scrutinised
and thus can feel more
comfortable sharing.
It enables creative fundingThe social way
How does crowd funding work
Anyone, anywhere can create an online 'pitch' explaining
their project and what they plan to achieve with the money
they raise. The Pitch will include 2 important sections:
- The Target – the total amount of money they
wish to raise for their project
- The Rewards – the benefits that people who
donate to a project get in return for their donation (see
Rewards section below)
Project founders then promote their project to potential
funders. Funders then invest money in the project and over a
period of time (60 days is the maximum time available to
raise the funding required) the funds accumulate until the
Target is reached.
How long does it take?
Once the Target is reached, the funds are transferred
to the Founder's Bank account. Following this the
Founder will begin to distribute the Rewards directly
to all contributors.
What happens
when target
amount is
raised?.
How Long can
you fund raise
for?.
The project
founder can
choose a duration
of 30, 45 or
60 days to raise
the Target
amount.
• If the Target amount is not raised within the time period then the Pitch will
be closed and all monies will be automatically returned to the Funders'
PayPal accounts.
•
The target amount represents the amount of money needed for the project
to work and be successful. If that amount of money is not raised and the
project can't achieve its aims then the Funders wouldn't get their rewards,
so no-one wins!
• So when working out the amount you require for your pitch, don't be greedy,
think of a realistic amount that will enable you to get your project running -
the more achievable the amount, the more likely you are to get the funding.
What happens if target fundsAre not raised?
1. It sure is. The Pitch will stay available for
contributions until the end of the funding
period. But watch out some crowd funding
may charge a higher rate of commission
on the extra amount raised.
2. There are no maximum amounts to any
project, but there is a minimum target
amount of £100
3. Most Crowd funding use this model "All
or Nothing" funding means they only
release the funds to the pitch owner when
the target has been reached.
What happens ifYou raise more or less
1. Is it possible to raise more than
the Target amount?
3. All or nothing rule
2. Is there a maximum or
minimum Target
amount?
The ProcessFAQ
Anyone! Crowdfunder allows anyone from any country and of
any age to start a project and raise funding. However, we do
have some guidelines and every project request will be reviewed to ensure only genuine, honest and legal(!) projects appear on
our site.
It is normally free to register as a project Founder and add a Project
to Crowdfunder.When a project Founder
successfully raises their Target amount Crowdfunder will deduct a success fee of 5% of the target amount (plus 5% of any excess
funds raised)..xt
No there's no maximum amount that a Funder can contribute .
However, if you do want to contribute a large amount eg
£500 or more, this will be arrange by bank transfer instead of a
Paypal transaction.
The ProcessFAQ
No, each project Founder may only have one active Pitch at
any time.
Pretty much anything that is legal can be pitched on but
each Pitch is thoroughly vetted by the team and Crowd funders reserve the right to refuse any Pitch application that they feel
isn't appropriate.
Yes, absolutely. In fact we actively encourage it, we have
found that the pitches that have an initial amount invested in them do better - if you don't
have the faith in your pitch to place money in it, then why
should someone else?.
• Upon your pitch reaching it’s target, usually some paperwork needs to be completed.
Once that’s completed the funds are released to you. It is expected that this will be
done about 7 days after your pitch completion.
• The Statement that is raise will explain exactly how much to expect from each
channel. Due to the different channels that they receive the money in to, Paypal ,
Direct Debit and bank transfers, the money will be released in different ways;
• Paypal -.
• Direct Debit
• Bank transfer
How do you get your money onceTarget has been reached?
Raising Small amounts of money
2 Micro Loans
Community SchemesMicro-Loans
21 If you only need a very small
amount of money, you should
think about a micro loan, which
is tailored to your circumstances
and can be used alongside
funding from other sources.
A number of companies in the
UK offer micro loans; for
example Finance Wales offers
funding from £5,000 to £25,000,
with generous repayment terms
ranging from one to five years
A plethora of community development
finance initiatives, or CDFIs, have
been set up around the country to help
individuals, and businesses, denied
credit by banks and lending
companies.
CDFIs provide help with everything
from bridging loans and working
capital to funds for property and
equipment purchase, but their terms
are usually restrictive; you usually
have to be either a micro-business or
a social enterprise, and be based in a
disadvantaged area to
qualify.
How it works
3 Borrowing against assets
Founder: Paul Aitkenwww.borro.com
21 Cash is advanced against
valuable personal assets, such
as jewellery, fine wines and
classic cars. Essentially, a
business-friendly variation on
the age-old pawn shop model.
In order to access cash, you
agree a value for your car or
rings, and hand the items over
to the provider. They can be
retrieved once the loan has
been paid off.
www.borro.com
Here’s how it works: Borrowers can
approach borro either through the
website or via a financial adviser. The
first step is a 10 or 15-minute
conversation, during which borro will
discuss the available assets and
assess whether it will be possible to
provide a loan.
Valuations
3 Borrowing against assets
www.borro.com
1 The next step is valuation. “Let’s say it’s a classic car,” It will
be collect and valued and a loan offer made. Interest rates
are set at 2.49% per month and the average borrowing
period is four to five months.
No Penalty for early settlement
There is no requirement to repay any percentage of the loan
before the end of the agreed period, although customers can
make the payment early without incurring penalty charges.
ideal for businesses that need a short term cash injection
Loan from individual lenders
4 Funding Circle
What you need to showThe offer and benefits
21
Funding Circle offers an online
platform that puts small businesses
in touch with investors who will lend
money. However, Funding Circle’s
focus is on term loans that will be
paid off over a specified term –
typically one to three years.
To qualify to raise cash via Funding
Circle your company will need to
show two years’ worth of accounts
filed at Companies House, so it’s
not for start-ups
Businesses as young as two and
half to three years can participate.
The sums advanced range from
£5,000 to £100,000.
The average interest rate is
currently 8.4%. However, because
money is advanced on an online
auction basis, businesses
perceived as less risky or
particularly attractive can secure
better deals.
Backed by the Department for business
Enterprise and Regulatory Reform
5 Enterprise Finance Guarantee
Who is it designed forWhat’s on offer
21
Backed by the Department
for Business Enterprise and
Regulatory Reform
(BERR) this guarantees a
loan of up to 75% of your
desired amount, on figures
up to £250,000
(if your business has been
trading for more than two
years) from banks and other
financial institutions.
The scheme is generally
designed for small firms that
have viable business
proposals but who have failed
to get a conventional loan
because they don’t have
enough security.
To be eligible you must be a
UK company with an annual
turnover of no more than
£5.6m
A one off cheapest form of finance
6 Grants
Who is it designed forWhat’s on offer
21
This is one of the cheapest
forms of finance but beware
of the sometimes non-
financial conditions that
maybe attached to the grant.
These could include the
number and type of people
employed and occasional
restrictions on items on
which the money can be
spent.
Some of these initiatives have
their own venture capital funds
supported by the Department
for Business Innovation and
Skills (BIS) which will fund
businesses seeking between
£50,000 and £250,000.
Thousands of other ‘hard cash’
schemes exist and are
provided by banks, the EU and
other large as well as smaller
organisations.
• Tim is going to explain why we need 200
Virtual tutors and how you can earn £800
month
• Register for one of our 3hr business
bootcamp seminars/workshops
• Check out our other opportunities at stand
330
• www.avptglobal.com
• Tel 0203 551 2621
What nextHow can we help