finance when starting up

Most businesses use a combination of these alternatives, according to their specific needs and circumstances.

This guide looks at how to work out how much money you need, the best financing options for your business and their advantages and disadvantages.

If you can't raise enough money to start your new business yourself, friends and family may be willing to help. They might lend money to you or to your new business or they might invest in your business, eg by buying shares. See the page in this guide on how to get outside investors to help finance your business.

You should provide potential investors with an up-to-date business plan. It will help demonstrate how their money will be used and explains the long-term plans for the business. You should also make sure that you have a written agreement in place that sets out terms and conditions, including any interest and repayment terms. This should help avoid misunderstandings.

There may also be tax implications for you and your family, especially on interest-bearing loans - see our guide on financing from friends and family.