How do start-ups raise money?

21st November 2018

How do start-ups raise money?

The key to raising finance is ensuring you have a good business plan in place.There are various ways start-ups can look to raise finance and these include:

  •  Business loans
  •  Small business grants
  • Use of own capital
  • Angel investors 
  • Venture capital
  •  Crowd funding

How do start-ups pay employees?

Start-ups will need to pay employees in the same way any other business does. They would need to ensure they have registered with HMRC as an employer and must calculate all necessary deductions from each employee’s wage (PAYE, National Insurance, Student loan repayments etc.) and report their pay to HMRC through a Full Payment Submission (FPS).

How do start-ups work?

A start up is a company which is set up to develop a business idea. This idea will usually be one which solves an existing problem in the market or is cheaper or better in some way than the existing competition. They work by gradually turning this idea into a product or service. This is achieved by ensuring a sound business plan is put in place to detail the stages of developing the idea as well as ensuring funding and staffing are considered.

Start-ups are usually initially financed by the individuals who set up the business. As the company starts to grow they may be able to attract finance from other means such as loans or sale of equity in the business.

How do start-ups get funding?

Start-ups are usually initially financed by the individuals who set up the business. As the company starts to grow they may be able to attract finance from other means. These can include:

  • Business Loans
  • Invoice financing
  • Small business grants
  • Angel investors 
  • Venture Capital
  • Crowd Funding

How start-ups can benefit from digital marketing

In today’s world people rely heavily on the internet to gain information on products and services. Therefore, it is vitally important that any start up business has an online presence to reach their target audience.

Digital marketing is a relatively cheap tool which enables any new start-up to advertise through means such as a website, emails, search engines and apps. The more visible a start-up is online the greater chance they will have of attracting new customers and spreading awareness of the business.

Nick Short | Plus Accounting

Author: Nick Short, Accounts and Audit Senior, Plus Accounting

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site

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