Are you ready for finance? Why start-ups need to prepare before approaching funders

When it comes to securing funding as a start-up, one of the most common mistakes I see is founders turning up to the “finance” conversation unprepared.

Imagine walking into a job interview without a CV, no idea what the company does, and a vague sense that you’d quite like a salary. That’s how a lot of funders feel when early-stage businesses ask for support without being clear on what they need, why they need it, or how they’ll use it.

It’s not about having all the answers - it’s about being ready to ask the right questions and having your house in order. Because when the right opportunity comes along, the worst thing you can be is unprepared.

Start with the basics: what do you actually need?

Before even thinking about pitching for finance, sit down and get to grips with the real cost of getting your idea off the ground. That means planning and forecasting as accurately as you can.

What are your start up costs? What will you need in the first three, six or 12 months? What will you be spending money on - and how will that investment move your business forward?

A simple cashflow forecast can go a long way. And no, it doesn’t have to be spreadsheet wizardry - it just needs to show you’ve thought about the numbers and can back up your ask with a bit of logic.

Know what’s out there and what’s right for you

There’s no “one size fits all” when it comes to start-up finance.

At UMi, we run the Get Funding service to help founders navigate that maze. Our in-house Business Funding Advisers (like me) work with founders to understand what’s out there - and more importantly, what’s going to work for your business, in your situation.

There's a lot out there, from Start Up Loans from the British Business Bank, innovation grants from Innovate UK to industry-specific support from Creative UK, and a growing number of accelerator and growth programmes run by organisations like NatWest, Barclays Eagle Labs and local Growth Hubs.

You don’t need to know all the schemes - you just need to know enough to ask for help. That’s where we come in.

Finance-Ready Checklist: what funders want to see

So what does “finance-ready” actually mean? Here’s a quick checklist to get you started:

• A clear business idea – what problem are you solving? Who are your customers?
• A business plan – even a short one can help show your thinking. You can find out more about what to include and download a template here, on UMi’s Sat Nav.
• Forecasted costs – be honest, realistic and detailed.
• Clarity on what funding is for – be able to explain how you’ll use it and what outcomes it’ll drive.
• A sense of timing – when do you need the money, and how long will it last?

Treat it like prepping for an important meeting - because that’s what it is. You’re asking someone to back you. Show them you’re ready.

Join the conversation

If this sounds daunting, don’t worry — help is at hand. The Get Funding webinar series explores this and many more funding topics in depth with industry experts. In the latest episode Get Start-up Finance: Making it easier to start your business’, hosted in partnership with the British Business Bank, we explored the different options available, sharing examples from founders who’ve secured funding, and diving into what really makes a difference when you’re starting out. Watch the webinar series here: www.umigetfunding.co.uk/webinar

If you’d prefer to have a one-to-one chat about your options, you can always speak to us directly through the Get Funding service. We’re here to help you understand your funding landscape and improve your chances of success.

When you’re prepared, informed and confident, funding doesn’t have to be a mystery - it can be a powerful tool to bring your idea to life.