It is likely that before your business can bring in any money through sales to customers, you will need to invest money in your business. Depending upon the nature of you business, this investment may be in premises, plant & machinery, information technology, tools, raw materials, staff recruitment & training, or goods for resale. Regardless of what the investment is in, you will have to ask the question of how the investment is to be financed. Broadly speaking there are four options for any new business, all of which have their own advantages and disadvantages:

• Invest your own money. This will only be possible if you have spare cash that you are willing to risk in your business
• Borrow money. This will probably involve making regular repayments and paying interest. It may also involve having to meet other conditions specified by the lender
• Sell shares in your business (if it is a limited company). This will involve a loss of control as shareholders will be the owners of you business. See Business Structure
• Government or other grants may be available

In practice, most new businesses will usually be financed through a combination of more than one of the above. The best method of financing for your new business will depend upon your own financial resources, the amount of money required, and the nature of your business, the degree of control you want to have over your business.

M B McGrady & Co is able to advise on the best means of financing your business. We are also able to assist with raising finance, preparing submissions for banks, applications for loans/grants, and setting up of limited companies.