Yesterday, we spoke about how this lockdown may be the filter for entrepreneurialism, and how many people might make use of this time to work on that side hustle of theirs and turn it into their main hustle. But what about those that have already taken that leap and are now facing the prospect that their dream might fail, due to the impact of Covid-19. We wanted to share a few things that we have come across that, hopefully, might be of use to anyone who feel they fit into either of these camps.
CBILS, Self-employed grant and the ones left behind
If you’ve recently started out on your new business venture, then unfortunately it’s quite likely that you may fall through the cracks of the current Government schemes on offer. If you’ve just started trading or are still in your early stages, there’s a potential that your business is not yet profitable enough to qualify for a CBILS loan – although it may always be worth a check. You also may not have been self-employed long enough to qualify for the Self-employed grant coming in June.
One of the options that may be available to you is a Start-up Loan. These are another form of Government backed schemes that were running pre Covid-19, they have helped support a number of new business ventures. These loans are open to people who have been trading for less than 2 years, with the potential to borrow up to £25k. Be aware though, these are personal loans, meaning that you are liable for 100% of the debt. You can find out more information from the Start-up loans site here.
Things they will likely require from you are:
-Amount of funding required and it’s uses
Pay it forward
We appreciate that debt financing in these times may not seem like the most attractive prospect. A way we’ve seen businesses of all sizes (especially start-up’s) to keep cash coming in, is through the concept of ‘Pay it forward’. This has been particularly popular in the food and beverage market, with breweries like Verdant and Brewgooder offering people the chance to buy the NHS a pint. This is a great idea, as not only is it a great way to show appreciation to those risking their lives for us right now, it helps to maintain immediate cashflow to help get your business through these tough times.
For more info check out Verdant Brewery’s site here.
Advanced sales and pre-sale products
Similar to the above, this is a great way to help keep cashflow up through the lockdown period, or even to muster the initial funds required to start out your venture. This is something that is used by the likes of Crowdfunder, where people can purchase your product or service in advance.
Think outside the box
Easier said than done, I know, but there are some really creative ways to drum up support for your new venture or young business. Something I’ve come across lately, is people using their abilities or other skills to help people and get support in return for their business. Maybe you have a background in Marketing? Why not do a few how-to videos and at the same time advertise your new venture. Used to be a personal trainer? Why not run a zoom class for a small fee and promote your business? You may read this and think, well there’s nothing that useful that I ‘m good at, but with a bit of thought and confidence you’d be surprised. We came across someone running a Harry Potter quiz recently and using that as a platform to promote and seek funding for her new venture!
Hopefully some food for thought at least. Have a good weekend all and stay safe.
As always, you have any queries, please do not hesitate to get in touch
-Landline – 01326 660022
-Mobile/WhatsApp/Text – 07779799995 – Mike Hutchinson
-Zoom ID – 205 677 7765 – Mike Hutchinson