Getting funding to scale in 2023
Many hundreds of thousands of new businesses are set up each year in the UK. Indeed, according to Companies House, just over 200,000 new businesses were established in the first three months of 2023. For some, the founders will be content with a lifestyle business or will not wish to scale in any meaningful way. But the majority of businesses will need to raise some form of funding and for many this will be during the early-stage of the business when it is looking to scale.
Having made the decision to raise equity funding, and assuming that you know how much you are looking to raise, you must then decide the best place to raise that funding. This will depend on the stage of your business, the amount you are looking to raise, the type of business, and various other factors. This will be explored in more detail in future articles.
Pitch decks and business plans are a very common area for discussion amongst founders and early-stage business owners, especially if those businesses are seeking to raise external funding in any way. And this is as it should be, as these two documents are essential foundation stones for both understanding and running your business, and for raising finance.
Having decided to scale your business and having concluded that the only way to make that happen in a meaningful way is to raise equity funding, there are then some very obvious next questions. This would include how much exactly do you need to raise and at what valuation, and where is the best place to raise the investment?
Founders and entrepreneurs have to have a determination and resilience that often distinguishes them from those that are paid employees. It is not only that they have to find a gap in the market that they feel they can exploit, but they also have to have the confidence to back themselves to do that.