Monday, November 9, 2015

5 Tips for Raising Finance for a Hair or Beauty Business

If you are setting up a new business in the hair and beauty industry you will quickly make the decision between basing yourself from a premises or setting up as a mobile business. There will a lot of factors you will need to consider when making that choice and finance will be a big part of that.

As a hair or beauty business develops finance can again become the sticking point for progress. You might be renting a commercial premises, but could potentially save yourself money each month if you were to buy it.  You might need to take on more staff or invest in new equipment to cope with demand. Before you consider approaching a lender for investment here are some tips of how to prepare:

  • If you want funding for new equipment make sure there is enough demand for the new services and the potential additional income can justify the cost of the equipment.  Do your research.

  • Get a variety of quotes for all new equipment and work that needs doing to ensure you understand the costs fully and avoid surprises or having to go back to your lender to ask for more money

  • If you want to move to new premises, or open an additional premises, do your market research to ensure there is demand there and you know what your competitors are up to

  • Make sure you have all your accounts in order and up to date as funders will need to see these

  • Put together a robust a business plan outlining exactly what you plan to do and how you plan to do it. A lender will want to see this to understand your vision and to be sure you have done your research

If you need help developing a business plan to prepare for investment, or you need some advice on how to raise finance for your business our specialist business advisers at The Women's Organisation can help.  From understanding your finance options, developing your plan to helping you put your application together, we are experts in helping businesses to become investment ready and secure finance.  Contact our team today on 0151 706 8111 or to find out more.

Tips by Business Growth Adviser Claire Pedersen

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