Blog - Online company formation

Crowdfunding VS Bootstrapping: What’s Right For Your Business?

11 August 2015

If you’re starting a business but can’t see how you can possibly afford to fund it, what do you do? There are several options open to you. Some start-ups apply for a bank loan or seek investors. However, these ways of funding your business can be hard to attain, especially if you don’t have a track record of running businesses. Easier options for your company might be crowdfunding, or doing without any extra funding by bootstrapping your way to success.

funding

In order to help you choose the right option for your business, here are some pros and cons of the crowdfunding and bootstrapping methods:

Bootstrap your business

Pros

  • You are entirely in control of your business – what you decide goes!
  • Funding a business with your own money is great for focusing the mind for success. You don’t want to lose your investment.
  • It’s easier to make fast decisions and changes in your company as you don’t have to run it by anyone else first.
  • You’ll have more time to spend on the business as you won’t be involving others.

Cons

  • You’ll have to sacrifice anything that is not absolutely necessary – no plush office!
  • A lack of funding can limit what you can achieve, as you will have fewer resources.
  • It is entirely down to you whether or not your business succeeds or fails.
  • You are assuming all of the financial risk by putting your own money into this venture. Can you afford to lose that money?

Crowdfund your company

Pros

  • Funding means that your business can grow a lot faster and you can even afford to hire other people.
  • By creating a campaign and driving publicity for it, your business will have a head-start in marketing by already being in people’s awareness.
  • You may attract bigger investors who like your idea and have previous business experience you can call on.
  • More funding undoubtedly creates more opportunities for your business.

Cons

  • It can be hard to generate enough publicity and interest to attain your funding goals.
  • You will have to answer to and update those who have funded you. You will have to deliver on any promises made.
  • It is time consuming to raise the capital and it can also be costly. There’s also a chance you won’t hit your target!
  • You will have to be able to justify exactly how you are going to spend the money you’ll receive, which takes time and planning. Get it wrong and you might not have enough money to achieve your goals.

Take the first steps by forming your company!

Whether you decide to opt for outside funding, or give bootstrapping a go, one of the first steps to achieving your business dreams is to form your company. Your business can be formed and ready to go in 3-5 working hours, leaving you free to take care of more important tasks. Find out more about our easy to use, online company formation service here: https://blog.eformations.co.uk/prices-packages/

Need a helping hand in your business?

Here at eformations we offer many services for businesses. From business accounting, to a first class business address service, and online company formation, we’re here to help your company succeed. View all of our services and form your company today by visiting our website. Alternatively, if you have any questions, feel free to call us for a friendly chat on 020 8232 5479.

 

Five Tasks You Should Be Outsourcing

07 May 2015

Outsourcing is a really savvy way for you to take your start-up, or growing business, up to the next level. Hiring freelancers and outsourcing certain tasks will help free up more time so that you and your workforce can focus on moving forward with the business. We’ve created a list of the five top tasks you should be outsourcing to help you start taking advantage of the benefits of outsourcing right away.

Outsourcing. Business Background.

  1. Marketing

If you don’t have professional experience as a marketer, it can be a great idea to outsource your marketing. A good tip is to research the best marketing teams in your area, as it will be easier to check any testimonials and contact other clients in order to find out what kind of results the marketing company yielded. You want to outsource to a company with an excellent track record and ideas which you feel fit in with your brand.

  1. Domestic duties

If you’re finding it stressful to keep up with ‘at home’ tasks such as cleaning the house and mowing the lawn, or even cooking, why not try outsourcing these jobs? If what you’re billing for an hour of your time is a lot more than what it would cost to hire a cleaner for the same time, you should definitely consider outsourcing these roles.

  1. Bookkeeping and accounting

This is another area which it can be hard to get a grip on if you’re new to running a business. Doing it DIY is possible, but it takes up many hours and costly mistakes can be made. It’s often better to pay a professional to do this job, even though it may seem expensive, because in the long run your business may well end up saving money.

  1. Paperwork

Filing documents such as your business’ annual requirements and even forming a company can all be outsourced. As a business owner, getting bogged down in the paperwork is the last thing you want to be doing and learning the ins and outs also takes up valuable time. Outsource tasks such as registering for VAT, or registering your limited company, and free up your time for focusing on your business.

We provide many online business services including online company formation. Find out more here: https://blog.eformations.co.uk/legal-requirements/

  1. Recruitment

Unless you have a background in recruitment, it can be a difficult task to find the right person to fill a role. Professional recruitment agencies will be able to place your ads where they’ll be seen by the right people. Agencies can also screen applicants so that you’ll be left with a well-qualified shortlist without any of the hassle.

Are you ready to start outsourcing?

Here at eformations, we offer many services to help make running your business as smooth as possible. From online company formation, to VAT registration, telephone answering, and much more, find out how we can help your business by visiting our website: https://blog.eformations.co.uk/ Alternatively, call us for a friendly chat on 020 8232 5479.