In this new ‘how to’ series, Ambition A.M. will explore some of the challenges facing Britain’s entrepreneurial community, providing firsthand insight and advice on how to overcome some of the most daunting ones.
How can you start a business if you have no money?
The daunting defeat can be seen as one of the biggest barriers to growth for many of Britain’s new and up-and-coming entrepreneurs.
Luckily, there are some alternatives to getting the process started if you’re on a budget, and we look at where and how to find them.
What is a grant?
A common misconception is that you need have a lot of money in order to start a business, or at the very least, know where to find someone who does.
Unlike a small business loan, a small business grant is a sum of money you aren’t expected to pay back, often granted in the form of an award or gift after meeting a certain set of criteria.
Each application will list its own unique set of eligibility guidelines, depending on the nature of your business or which type you are applying for, but the general process is fairly simple.
Where can you look for a grant?
“Grant programs play an essential role in providing that critical early-stage capital that allows founders to transform their ideas into reality,” Emma Jones, serial entrepreneur and founder of small business membership community Enterprise Nation, tells Ambition A.M.
However, she said it’s an “all too often” struggle for some founders to even find what kinds are even available.
“With numerous schemes spread across different government bodies and organisations, it can be an overwhelming task for time-strapped entrepreneurs to know where to look — resulting in them potentially missing out on much-needed funding,” Jones added.
Here’s three easy ways to keep an eye on what money is available:
- Innovate UK – Innovate UK offers various competitions and schemes throughout the year, depending on the type of business or idea you have in mind. Their website is updated as applications close and open, so keeping an eye on it regularly might help you get a feel for what you’re looking for.
- Help to Grow website – The Help to Grow website is the UK Government’s “one-stop-shop” for SMEs looking to start, scale, or further their business ventures. Alongside training programmes, loan schemes, and advice, you can also find alternative funding options available and seek support along the way.
- Enterprise Nation’s small business grants group – As a leading membership community, Enterprise Nation has a networking group designed for founders and members on the look out for grant announcements and industry updates. There are various community efforts similar to this, but it’s a great place to start.
What will help you secure a grant?
“In order to win grant funding, you have to have a great story,” Madusha Peiris, founder of weight-loss product developer Enterika Ltd, tells Ambition A.M.
Peiris has had firsthand experience in securing various small business grants since registering her company in 2021, the most recent being the £50,000 Unlocking UK Potential: Build grant from Innovate UK.
But while having a great story to tell might be the first step in finding outsider interest, Peiris said learning how to write your proposal in a “compelling” way will be what helps you stand out from a competitive pool of applicants.
Her advice? Use mentors as much as possible and seek out help from others within the community. Odds are, you’ll find another start-up or founder who been in your exact same position before.
Getting started
“Gone are the days where an early-stage tech start-up can easily raise sizeable seed capital with little more than a great idea and a pitch deck,” Damian Skendrovic, general manager for EMEA at founder consultancy VeUP, said.
However, turbulent times create resilient entrepreneurs, Skendrovic said, who recognise the importance of building a business that can “weather” the storm.
For those looking for non-dilutive options to kickstart their small business, Skendrovic suggests checking out some of the below schemes to help you get started:
- Enterprise Europe Network – The network offers grants designed to help startups looking to expand internationally, mainly helping to facilitate mutually beneficial introductions and partnerships while also supporting with EU funding programmes.
- The EIC Fund, which is the venture arm of the European Innovation Council (EIC) – They provide non-dilutive cheques of up to €2.5m. (More information available here).
- The Enterprise Ireland High Potential Startup (HPSU) Fund – It is one of the most active investors globally for seed stage startups, with their “Capital Funding Support” assisting Enterprise Ireland client companies in improving productivity and competitiveness through the acquisition of new capital equipment and technology. The grant provides up to a maximum of €250,000.
