The Startup Dilemma, funding and where to get it.

In Northern Ireland there was (and still is) InvestNI, they had a eight week course called the Start A Business Programme (SABP). All in all it was an excellent introduction into starting a business. There are four marketing modules, four finance modules and now there additionally there are two technology modules. Up until mid last year you would receive £400 to completing the course and creating a business plan. Now you don't get a penny. Talking to Invest NI at the Jobs Fair at the start of the month, no one could commit to me whether payment would be re-introduced at any point soon.

Microbusinesses don't need huge amounts of money to get started. Usually in excess of £1000 but I've found talking a various people that the SABP only serves a small gap and most don't get setup because of the cash short fall. Limavady Borough Council took the bold step of running an initiative to give a certain number of startups useful backup support and development, plus there was a cash grant at the end. This too is over for the time being.

So what can anyone do? The tradional methods of business plan-to-bank manager are fading fast. Most of the Limavady decisions on business loans are no longer taken on personal level, everything is referred to head office. The chances are getting loans at the moment are slim though the upper folk in government would like us to think different.

Social lending is an option. Zopa is an online service for finding loans online but the money is provided by it's user base. Once you have created an account and your credit rating is measured you can post a loan requirement. Users will offer you either part amounts or the full amount and the repayments are based over 36 or 60 months. The interest rate is set by the person funding the loan so this can vary. The average interest rate on Zopa runs at around 9.10%.

Never underestimate the friends and family option, something I personally steer clear of because of potential harm it could to a good friendship. It's an option but one I'd tread with care on.

If you are hellbent sure that you are onto a winner then you could apply to Dragons' Den but this too comes with it's own set of criteria. Firstly there's the application via the BBC, if you are a friendly fit for TV then you are in with a chance. Keep in mind that the main key factors for a DD win are: patent applications on an idea, already set up as a limited company, a unique selling point and wear a tie (if you want funding from Peter Jones) or don't wear a tie (if you want funding from Duncan Banatyne). Not many people leave the den without a deal of handing over 40% equity in a company. Then, once you've done all that, honed the pitch, got the deal and walked down the stairs to an emotional shower down with Evan Davis, then the due dilligence starts..... The TV show applies for anyone after £50,000 or more, if you want less than that you can pitch online.