As your business grows, there will often come a time when you require external investment to help take it to the next level and ensure it is a success. There are many ways your company can raise the funds it needs to help it grow sustainably and expand your organisation, and you will need to investigate all the available options. Getting the capital that you need to raise your business to the next level can make or break your company, so it is not something you want to rush into doing. Below are a few options for raising capital that may be interesting for your business and help you realise your company’s dreams.
The Government EIS Scheme
If your company qualifies, the Enterprise Investment Scheme (EIS) set up by the UK government might be an excellent way for your company to raise capital. Your business must be permanently based in the UK and not listed on any stock exchanges. It is also not allowed to control another company or be controlled by another company. You are not allowed to have more than £15 million in assets and must have less than 250 full-time employees. If your company qualifies, there are excellent incentives for investors, such as:
- Income Tax Relief
- Inheritance Tax Relief
- Tax-Free Growth
- Loss Relief
- Capital Gains Deferral
You can learn much more about this scheme and its benefits to the company and investors by clicking here.
You can also consider crowdfunding to raise your business’s needed capital to take it to the next level. You can use various crowdfunding platforms that may be suitable, and you will need to consider what you will offer the investors in return. Most crowdfunding projects will have different levels for investors, so if you donate a certain amount, you will receive something in return, which scales upwards to the highest level. Many companies use crowdfunding to raise the capital needed to boost the business and take it to the next level, but you must remember that you need to offer a decent incentive for people to invest in your company.
Look For An Angel Investor
You can also look for an angel investor to provide the capital your business requires, and there are various platforms you can register with to look for investors for your company. You will want an angel investor with experience within your industry, an excellent reputation and network, realistic expectations, and the funds available for future rounds of investing. You will need to show them you have a strong team, excellent growth potential, a solid business plan, and an exit strategy. Many angel investors may be interested in investing in your business if it shows potential, and you will need to find the best platforms to attract these types of investors. You can click here to see some of the various platforms you can use to help you find angel investors. They can be an excellent way to raise capital for your business and utilise the investor’s experience and contacts.