This is a presentation that takes you through the process of indentifying costs so that you can determine the amount of money you need to raise for your business. This presentation by www.optimise-gb.com also identifies where you can go to raise finance. We wish you the best of luck. Simon Misiewicz

1. Raising Finance for your business

2. Sources of finance There are many places that you can go to raise Finance for your business Bank Overdrafts Bank Loans Investors Friends & Family

3. Sources of finance Bank Overdrafts Advantages -Short term financial support to get started -Getting money from the bank in this fashion is relatively fast Downsides -Can be expensive with high interest charges -Banks may require personal guarantees -Interest rates may be variable so can fluctuate over time

4. Sources of finance Bank Loans Advantages --Borrowing is for a longer period of time -The rate of interest can be fixed and you can forecast your repayments -Once paid back you still have full control & ownership over the business

5. Sources of finance Bank Loans Downsides -Can be expensive due to the levels of interest -Certain banks may wish to spend time with you to understand the business and request financial reports pulling you away from your customers -Banks may require personal guarantees -Repayments are not usually flexible and will require you to pay a fixed amount of the agreed term -Loans may be secured against assets of the company and you could lose assets if loans are not repaid

6. Sources of finance Investors Advantages -Investors may provide some support to you in the running of the business -Investors may take more risk and invest more into the business compared to banks Downsides -Investors may take some time to reach decisions about your business -The cost of investors may be considerable if not by way of interest returns but by way of their ownership in the business. -Your decision making process may be slower if they need to be approved by the investors

7. Sources of finance Friends & Family Advantages -There may not be such rigid ties to the administration of the borrowing compared to bank and investors -The arrangement of money may be quicker than other borrowing options. -Invariably the cost of borrowing will be cheaper than other arrangements

8. Sources of finance Friends & Family Downsides -Unless agreed at the start the amount of interest or the time to repay the debt may be disputed -Debts between friends and family can affect relationships especially in troubled times. -The length and valuing of borrowing may not be stable as it depends on their circumstances not just yours.

9. How much do you need? Before you seek Finance be clear of how much money you need. What type of costs should you consider? Plant & Machinery Stock / products Accountancy / tax costs Office costs including furniture Premises leases, refurbishment, rates, utilities Employee / recruitment costs

10. How much do you need? Before you seek Finance be clear of how much money you need. What type of costs should you consider? Advertisement / promotional costs Web site / e-commerce Legal costs: company formation, patents, licences etc Transportation Stationery costs Graphic design / business logos etc

11. Once you have established what your costs will be, plan when money will be spent. Always add 20% of contingency costs as you may not be able to identify all the costs in a business plan http://www.optimise-gb.com/business-templates Cash flow and profit forecast

12. Cash flow and profit forecast

13. To ensure that you have covered all costs and accurately projected your revenues write a business plan… See our web site for a free business plan template or purchase business writing software from: http:// www.optimise-gb.com/business-templates Writing a business plan