If you think you may be able to start a business from home, you will need to make some enquiries before you get started. Is there a market for what you are doing or making? Who can you sell to or where can you sell it? Will you need to advertise or do you already have contacts that you can use?
You will need to register yourself as self-employed and it may be that you decide to set up a company. An accountant will help you do this, but these services may have to be paid for. The business will be registered at Companies House and you will be responsible for paying national insurance contributions and submitting tax returns. A good accountant or tax specialist will be able to help you with this. Beyond that you will need to keep a record of all your expenses and earnings. If you are unable to do this yourself find a recommended local bookkeeper who will keep your affairs in order for you.
As with most things the ideas are endless...are you good at knitting? Could you sell hand knits to a local store? Do you enjoy baking? Could you supply cakes, scones etc to a local cafe? Could you design and make jewellery, children's clothes, toys, make cards or gifts. At the end of the day, check that you can make enough money from the business, that you have enough time and space to do it and that you can meet any required standards e.g. health and hygiene, safety etc. A new business may take a while to get off the ground but as the saying goes 'tall oaks from small acorns grow' and in no time, with a good idea and some hard work and good business advice you could be running your own successful business.

Advice and Grants to start your own business

The flexibility, which may be available to you by setting up your own business, is an appealing factor.
You may never have been involved in setting up your own business before and certainly the mere prospect may seem daunting.
However, help is available in various formats and this site on the web is designed to give you an overview of potential ideas as to how you may be able to raise some finance to assist you.

LOAN GUARANTEE SCHEME

Offers a means of obtaining finance for small businesses that cannot otherwise do so by providing a Government guarantee against default by borrowers. The scheme enables banks and other financial institutions to lend money for projects which would otherwise present too great a financial risk.
The Government may guarantee 85% of up to £250,000 once the bank has agreed to put forward the application.
The loan is repayable from between 2-7 years. A premium of 1.5% is charged by the Government on the loan.
As with any other approach to financial institutions it is essential that any case is support by detailed information in the form of a business plan.

Under the Small Loans Arrangement, loans up to 30,000 can now be approved by the lending banks without first referring them to the Department of Trade and Industry.
Eligible activities are most types of business involving tradable goods and services.
These include all manufacturers, construction firms and most service industries but exclude retail, agriculture and fisheries, coal, shipbuilding, steel and transport sectors.

Contact for applications: - High street banks.

BARCLAYS EUROPEAN INVESTMENT BANK LOAN SUPPORT SCHEME.

One-off payments of between £250 and £30,000 are available on capital investment loans of between £30,000 and £10 million over a term of at least 4 years. The borrower must employ fewer than 500 employees and have net fixed assets less than 60 million, although these may be relaxed for projects relating to infrastructure, energy or the environment.
The project must be an investment in industry, a service to industry or in the hotel and tourism sector.

Contact: - Business bankers at local Barclays branches.

EIB SMALL AND MEDIUM-SIZED ENTERPRISE LOAN SCHEME.

The European Investment Bank is making loans available to UK SME's through Lombard North Central plc. To qualify for funding firms must have less than 55 employees and fixed net assets of less than £600m and be from industry, tourism and related services, small- scale infrastructure, energy ventures and environmental ventures. Loans will be allocated to finance asset-based projects including plant and machinery.

Contact: - Lombard Business Finance 0345 697646 who will refer you to the relevant office.

ENTERPRISE AGENCIES.

Advice and consultancy for start-up and small businesses (up to 10 employees) is available from the enterprise agency in your area. Workshops at special subsidised rates are run covering: drawing up a business plan; forecasting cash flow; taxation; VAT and NI contributions; marketing; sources of finance. A series of one-day seminars are also run for all businesses with up to 10 employees. Topics covered include: bookkeeping; understanding finance; debt control; taxation; selling and negotiating; marketing; advertising and promotion.

Contact: Your local Enterprise Agency.

THE PRINCE'S TRUST - BUSINESS.

Provides loans and grants for young people aged between 18 and 30 years (or up to 32 in the case of the disabled) who want to start or develop their own business. It also provides advice, arranges training and offers marketing opportunities to those it supports. Loans of last resort are available at low interest rates up to £5,000. Grants up to £1,500 per person or £3,000 for a group working together may be available to meet the setting up costs of their business. The money can be put towards the purchase of fixed assets and items other than stock and materials, or for any training requirements

Contact for applications: - 01273 723399.

LIVEWIRE.

Livewire is a programme supported nationally by Shell UK to help young people aged between 16 and 30 years to start their own business. Through a network of coordinators and advisers it offers help putting together a business plan, business start up awards and post start up guidance.

Contact for applications: - 0345 573252 Livewire, Hawthorn House, Forth Banks, Newcastle Upon Tyne NE1 3SG.

THE CRAFTS COUNCIL.

The Council can provide grants up to a maximum of £2,500 towards the first year running costs of a craft workshop. Grants of up to £5,000 are also available for meeting 50% of capital equipment purchases.

Contact: - 0207 2787700 The Crafts Council, 44a Pentonville Road, Islington, London. N1 9BY.

REGIONAL SELECTIVE ASSISTANCE PROJECT GRANTS.

Applications are considered against a number of criteria including benefit to the national / regional economy and the creation or safeguard of employment. These are administered by The Department of Trade and Industry and paid directly to the businesses. They are limited to a maximum of 15% of eligible project costs or approximately £3,000 per job created or safeguarded, whichever is the lesser. No legal commitment towards the project should be made before the DTI formally agree the grant.

BARCLAYS ENVIRONMENTAL FACILITY.

Designed in conjunction with the European Investment Fund and European Investment Bank to assist businesses to finance environmentally beneficial investments. Barclays is the only bank chosen to operate this scheme which entitles eligible businesses to several benefits. The loan must be for an amount between £15,001 and £250,000 and to be eligible the business must have fewer than 100 employees and net fixed assets of less than £50m. Preference will be given to businesses with less than 50 employees.

Contact: - 0207 599 6239.

SMART.

SMART is the DTI's package of support which can provide grants to help individuals and small and medium sized businesses review their use of technology and research and develop technologically innovative products and processes. All applications are competitive and the following help is available: -

Technology Reviews.
Grants of up to £2,500 for individuals and firms with under 250 employees towards the cost of expert reviews against best practice. A consultant carries out the work.

Technology Studies.
Grants of up to £5,000 for individuals and firms with under 250 employees to engage a consultant to help identify technological opportunities leading to innovative products and processes.

Micro Projects.
Grants for up to £10,000 are available to help individuals and micro firms (under 10 employees) with the development of low cost prototypes of products and processes involving technical advances and / or novelty.

Feasibility Studies.
Grants of up to £45,000 for individuals and firms of fewer than 50 employees undertaking feasibility studies into innovative technologies.

Development Projects.
Grants of up to 200,000 euro to firms of fewer than 20 employees undertaking development projects.

Contact: - Your local Business Link/ Enterprise Office.

EUREKA.

A scheme for companies and other organisations who want to find a European partner wishing to share the technological, financial and commercial risks of developing new products and processes. The DTI may offer assistance towards the costs of assessing the feasibility of projects, researching potential partners and visiting them to discuss possible collaboration. Assistance with actual project costs may also be available to small organisations.

Contact: - Eureka Enquiry Unit Tele 0207 215 1618.

THE ENTERPRISE INVESTMENT SCHEME.

The Enterprise Investment Scheme allows qualifying unquoted trading companies to raise new equity finance of up to £1 million per tax year. The finance is raised from individuals who may each invest up to £100,000 per tax year and receive tax relief at the basic rate on the cost of the investment. Provided an investment is held for 5 years, it is exempt from capital gains tax when sold. Loss relief is available to investors against other taxable income or capital gains should the investment fail or be realised at a loss.

Contact your local Business Link / Enterprise Office.

NATIONAL BUSINESS ANGELS NETWORK.

A national service working across the UK to achieve introductions between private investors/business angels and businesses seeking finance.

Contact for Information Pack: tele 0207 3294141 www.nationalbusangels.co.uk

3i GROWTH CAPITAL FUND.

3i offer a variety of methods of raising capital for growth.

Contact: - Your local 3i office.
www.3igroup.com

SMALL FIRMS TRAINING LOANS.

Available to businesses with up to 50 employees to pay for vocational education or training. Loans of between £500 and £125,000 can be borrowed to cover up to 90% of course fees, books and other training related expenses (including cover for workers undergoing training), up to an overall average of £5,000. Repayments can be deferred for up to 13 months, during which time the loan is interest free for the business.

SFTL's are available as a result of a partnership between the Employment department and BARCLAYS, The Co-operative and the Clydesdale banks. However your local Enterprise must endorse the application before it is submitted to the bank.

Contact: - Your local Business Link office.

CAREER DEVELOPMENT LOANS.

Available to individuals who require financial assistance to undertake vocational training. Loans of between £200 and £8,000 are available if: -
you live or intend to train in the UK.
you are over 18 years old and not receiving a mandatory grant or full discretionary award for training or education.
you will work in the EC after the course.

The course is suitable for the work you want to do and lasts up to 2 years.
The loans are available for up to 80% of course fees, plus books, materials and other course expenses and in some cases living expenses if you are on a full time course. The Government will pay the interest due on the loan for the duration of the course and for up to 3 months afterwards or 6 months for people registered as unemployed. Then it's up to borrowers to repay the loan plus any further interest in instalments. You may train full time or part time or use open learning.

Contact: - Your local Business Link office.

LOCAL AUTHORITY GRANTS.

For full time courses it may be possible to get a grant from the Local Authority in your area.

Contact: - Your local County Council and Careers Office.

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