Alan and Simon ask the Question – Is a Startup Loan really worth it?
Note: This transcription has been generated with AI and there may be errors present.
So we’re here in Oxford, outside Barclays Bank, talking about funding, because one of the questions we always get asked or variation of this question is, how do I get funding to start my business? What funding or grants are available? Where can I find people who give me money to start my business is all about and the question startup entrepreneurs always ask us is, where do I get the cash to get going? And I think we’re looking at this completely the wrong way.
Is there any grant funding for my business? Where can I get a loan from? Where can I get investment in my business, and what we’ve discovered, there are so many more interesting, exciting, creative ways to start your business than borrowing money to get going, you don’t need someone else’s money, you want to start your business in debt, what you want to start your business is in his profit,
there’s been a reduction in the grants and funding available to start businesses. And actually now you’re lucky if you can find someone who will give you three grand or two grand to get going. And I would actually challenge if you need it at all. Because our belief is you don’t need money to start a business.
If you can get going in a different way rather than getting money, then your business is going to be so much stronger for it. And you’re going to be so much more engaged with it. Because here’s one thing I can guarantee you if you get given free money to start your business, but two things, one, congratulations, good luck to you, too. You’re going to waste it, you’re going to spend it on things you don’t actually need to spend money on. And once the money is gone, you’re going to ring me up and say something I spent 3000 pounds, but I still don’t have any customers. The place where you need to start and with your business is with your customers. And if you can get your stuff sold your products and services sold in advance and get paid in advance. You don’t need to borrow money to start your business. When
you start a business. What you need to do first is to start with sales. Rather than starting with getting funding. The thing that everyone puts off right to the end is sales. They’ll spend all their time filling out applications to get funding. They’ll write lots of grant applications. They’ll write all this stuff, and they won’t go and sell stuff. I think sales for most entrepreneurs and most startups is the most scariest thing. But actually, it’s the most important. If you start with sales, you’ll find the customers that will bring in the money that you will need to be able to start your business. So my advice is stop applying for grants. Stop wasting time applying for loans and start selling. Get out there and launch your business from sales and finding customers.