{"id":4054,"date":"2018-03-27T10:00:59","date_gmt":"2018-03-27T10:00:59","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=4054"},"modified":"2026-01-29T10:39:29","modified_gmt":"2026-01-29T10:39:29","slug":"business-funding-tips","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/business-funding-tips\/","title":{"rendered":"“Start selling before attempting to raise money” – Business funding tips from global SME influencers"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\t“Start selling before attempting to raise money” – Business funding tips from global SME influencers\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tDavid Wing<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Forming your own firm and finding business funding can be a strain. Whether you look near or far, you are responsible for the investors\u2019 money, be they family, friends or fairies\u2026 OK, angels.<\/p>\n\n\n\n

With small to medium-sized enterprises (SMEs) accounting for an annual UK turnover of \u00a31.9 trillion in 2017<\/a>, there\u2019s more and more incentive to start-up your own enterprise\u2026 but where can you find the money?<\/p>\n\n\n\n

At the start of March, Sage hosted a Twitter discussion with a number of influential people in the social media SME world on the topic of business funding.<\/p>\n\n\n\n

A selection of the Sage Top 100<\/a> global business influencers for 2017 discussed their journeys through the SME landscape, how they found funding for their businesses and how they continue to thrive.<\/p>\n\n\n\n

These business influencers are highly experienced in the SME field, with many \u2013 including GrowBiz Media founder Rieva Lesonsky, executive coach Tripp Braden and business growth expert Ian Knowlson \u2013 specialising in helping new and established businesses to grow and strategise in their industries.<\/p>\n\n\n\n

Here are some of their key responses on business funding.<\/p>\n\n\n\n

Have friends and family supported your business? How did it work out?<\/strong><\/h2>\n\n\n\n

\u201cOh yes, for sure. When I first announced I wanted to start a business, two of my friends immediately stepped up.\u201d Rieva Lesonsky @Rieva<\/a><\/strong><\/p>\n\n\n\n

\u201cIt works best when the business owner starts with the end in mind on how they accept and structure these investments. Clarity is critical for longer term success.\u201d Tripp Braden @TrippBraden<\/a><\/strong><\/p>\n\n\n\n

Have you tried asking your bank for business funding? Were they receptive?<\/strong><\/h2>\n\n\n\n

\u201cI found them most unhelpful in 2011. Sadly many of my clients\u2019 experiences have been similar. There are many other funding sources out there if you have great ideas and angel investors plus local entrepreneurs are often a great source.\u201d Ian Knowlson @IanKnowlson<\/a><\/strong><\/p>\n\n\n\n

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What are your experiences of \u201cdragons\u201d? Could you work with them?<\/strong><\/h2>\n\n\n\n

\u201cSome investors are looking for a quick in-and-exit multiplier, others for a strategic portfolio breadth addition and others for a long-term-consistent-dividends return. If unsure, ask them in advance.\u201d Ian Moyse @imoyse<\/a><\/strong><\/p>\n\n\n\n

Venture capitalists may have pots of cash but what are the \u201cstrings\u201d? Has it worked out for you?<\/strong><\/h2>\n\n\n\n

\u201cLearn how to walk away and when to run… To be successful, you must understand where the true value in your business is.\u201d Tripp Braden @TrippBraden<\/a><\/strong><\/p>\n\n\n\n

\u201cVC funding is rare. They\u2019re only interested in funding fast-growth businesses in certain industries and you need to be wary.\u201d Rieva Lesonsky @Rieva<\/a><\/strong><\/p>\n\n\n\n

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Crowdfunding seems easy and accessible but are there hidden drawbacks?<\/strong><\/h2>\n\n\n\n

\u201cMy perspective is to start selling before attempting to raise money. If you are able to sell, you won\u2019t need as much and the terms of your dilution will be more favourable if you really do need to do a raise.\u201d Mike Briercliffe @mikejulietbravo<\/a><\/strong><\/p>\n\n\n\n

What if you’re turned down for funding multiple times \u2013 should you re-evaluate your whole business plan or keep going?<\/strong><\/h2>\n\n\n\n

\u201cIt would certainly make you think so, wouldn\u2019t it, but it depends on your passion. Would be good to have quality feedback as to why your plan was rejected \u2013 was it too ambitious sales line or missing detailed costs?\u201d Ian Knowlson @IanKnowlson<\/a><\/strong><\/p>\n\n\n\n

What\u2019s the best bit of advice anyone has ever given you or your business?<\/strong><\/h2>\n\n\n\n

\u201cUnderstand what is critical and what is nice to have; don\u2019t overextend yourself. Become good at making deals so that you can keep reserves higher when better opportunities show up.\u201d Tripp Braden @TrippBraden<\/a><\/strong><\/p>\n\n\n\n

\u201cI was told as MD to focus on cash flow. That my primary goal is to pay the bills and delegate the rest. It’s worked.\u201d Luke Brynley-Jones @lbrynleyjones<\/a><\/strong><\/p>\n\n\n\n

Final thoughts on business funding<\/strong><\/h2>\n\n\n\n

Being the boss, the buck stops with you. If you find investment based on mutually beneficial and agreeable terms, chances are that both sides will be happy. Now all you have to do is turn a massive profit.<\/p>\n\n\n\n

What are your experiences of business funding? Let us know in the comments below and do follow our #sagetop100<\/a> on Twitter for our global business influencers\u2019 updates and thoughts.<\/p>\n\n\n\n

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Guide to alternative funding<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Discover 10 sources of funding for your business and how to apply in our essential guide for startups and small businesses.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\n\t\t\t\t\t1,457 readers have downloaded this guide\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n
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Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n

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