How do you fund your early start-up business?
In this podcast episode, host Rob Lawrence discusses with Justin Nevison-Grainger, a seasoned corporate finance expert, the importance of validating business ideas, seeking honest feedback, and understanding commercial finance for new business owners.
Justin also explains funding options, including government loans and private investments, and introduces the "CAMPARI" approach for preparing funding discussions. He also emphasises the need for long-term planning, aligning business goals with personal ambitions, and the value of resilience and adaptability.
In this episode you'll learn:
Helping new businesses (00:01:15) Justin discusses how he assists new businesses, offering guidance on commercial finance and the challenges they face.
Unique perspective and experience (00:02:59) Justin shares his unique perspective and the experience he has gained from helping various organisations and growing enterprises.
Background and experience (00:04:38) Justin provides an overview of his 30 years of experience in corporate finance, including his roles at Barclays and Handelsbank.
Starting and growing a business (00:06:53) Justin advises new businesses to seek honest opinions, test their ideas, and build support networks before taking the plunge.
Questions for soliciting feedback (00:08:23) Justin suggests seeking feedback from support networks, and forums, and testing business ideas before starting a new venture.
Services and finance support (00:010:02) Justin explains how his services fit into the start-up journey, offering philanthropic support and assistance with start-up finance.
Startup funding opportunities (00:12:11) Justin discusses the initial funding options (the 3 Fs) and the government start-up loan scheme, before exploring other sources of finance.
Preparing for funding conversations (00:14:59) Justin advises on preparing for funding conversations, emphasising the importance of character and the purpose of the funding.
The Stress Test (00:16:57) Justin discusses how early-stage businesses should consider their ability to service interest rates and the use of tools like loan calculators to plan their borrowing.
Ability and Viability (00:18:58) Justin explains the importance of demonstrating management skills and viability, including understanding profit and loss accounts and identifying key skills needed for the business.
Repayment and Serviceability (00:19:51) Justin emphasises the importance of the ability to repay borrowed amounts and the concept of offering security to lenders for repayment assurance.
Insurance for Security (00:20:47) Justin discusses the need for offering personal guarantees or assets as security to lenders and the benefits of doing so to reduce borrowing costs.
Understanding Numbers (00:22:44) Justin explains the importance of understanding setup costs and making assumptions for business plans and projections.
Cash Flow and Survival Budget (00:24:51) Justin emphasizes the need to consider personal survival budgets, cash flow, and working capital cycles when starting a business.
Credit Insurance (00:28:19) Justin explains the concept of credit insurance, its benefits in protecting against non-payment, and the due diligence it provides on customers.
Success Stories (00:30:21) Justin shares success stories of turning loss-making businesses profitable and helping entrepreneurs achieve their life...
