Funding the Scale up

Moving into scale up phase will require a full evaluation of the funding requirements.

You should have tested the viability and cash flow – see Is the Scale up Viable

 

You should have a realistic view of the potential scale and speed of the scale up based on the early success of the business.
There are a wide range of funding options to consider.

 

Organic growth funded by internal funds (profits and free cash flow)
Grants for R&D etc
Grants to support social enterprises
Bank loans and overdrafts
Invoice discounting and factoring
Crowdfunding
Equity finance from angels and venture capital

 

Don’t forget managing working capital (debtors, creditors and stock) can have a big impact on funding requirements.