Funding for Business Start up without Capital

by Sally
(West Yorkshire )


Hi David,
I'm keen to start my own business and have a great plan, I was thinking of hiring rather than buying in the short term as I don't really have any funds after renting my own residential property solely, it's been a big wage cruncher. Do you have any ideas on how I'd be able to raise funds, or access any grants or loans for my business? I would initially need to employ an assistant, so maybe this would help with the gaining of a grant or short term loan?

I really feel there's a gap in the market, and there's room for expansion long term.I have long term goals for the business too.

Thanks in advance,

Sally

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Apr 14, 2025
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by: MobCater

Hey Sally,

First of all—massive respect to you for wanting to build something of your own, especially when things are tight financially. That takes guts, vision, and no small amount of determination.
Its not always easy.

You’re absolutely right—there is opportunity in the mobile catering world, and starting lean is actually a smart move, especially when you don’t have capital to throw around.

Let’s try this step by step, so you can see some real, practical options for funding and getting started without a pile of savings.

1. Start Lean – Hire and Rent to Reduce Risk
You’ve already nailed a smart mindset: hire and rent in the short term.

Hiring gear instead of buying helps massively reduce upfront costs. You’ll pay more over time, but you avoid that initial cash block.

Look into short-term equipment rental from catering hire companies or even other traders looking to earn a bit on the side.

When it comes to employing someone early on, think about whether you could start with part-time or casual help until you’re generating income. Even someone just during peak times can make a huge difference.

2. Explore Startup Grants and Local Support Schemes

There are some grants out there, but many have strict criteria. Still, don’t rule them out—especially with your intent to hire and grow.

Here’s where to start:

Local Council & Enterprise Partnerships
Check your local authority or Local Enterprise Partnership (LEP) website for business support schemes.

Some offer startup grants or matched funding, especially in areas with regeneration funding.

Government Startup Loan Scheme
Startup Loans UK offers loans of up to £25,000 with a low interest rate and 12 months of mentoring.

No upfront fees, and you don’t need to offer security.

It’s not a grant, but it’s one of the more accessible options if you’ve got a solid plan.

New Enterprise Allowance (NEA) (if you’re on Universal Credit or similar)
You may qualify for mentoring, a weekly allowance, and access to a business loan.

Ask your Jobcentre or local Work Coach about this.

3. Consider a "Soft Launch" to Prove Demand
Before going all-in, think about a way to prove your idea with minimal costs. You could:

Pop up at events using hired gear

Trade under a friend’s existing licence or at a local market stall

Offer catering for private parties with a borrowed setup

If you show traction early—like consistent bookings or strong social proof—it makes it much easier to:

Get funding

Justify hiring

Attract local business support

4. Use Partnerships to Share the Load
Since you mentioned hiring an assistant, you might consider a collaboration model, especially in the early days. Could someone come in as a revenue-share partner for a few months? You keep more flexibility while still getting support on the ground.

5. Look Into These Alternative Funding Routes
Crowdfunding

Platforms like Crowdfunder UK or GoFundMe allow you to tell your story and raise funds from friends, family, and your future customers.

Especially powerful if you’ve got a niche angle or something that supports the local community.

Microloans or Credit Union Loans
Some credit unions offer small business loans with fair terms.

Worth checking in your area—especially if banks have said no.

Family & Friends (with terms!)
Not always easy, but if someone believes in you, get it written up properly.

Even a few hundred quid to cover your first few trading days can get the ball rolling.

6. Make a Simple Business Plan (You’ll Need This Anyway)
Even a one-pager showing:

What you’re selling

How much it’ll cost to get going

Where your first few sales will come from

When you expect to break even

…will go a long way when speaking to grant bodies, lenders, or even potential partners. You are on the right track, ou’re on the Right Track
The fact that you're thinking carefully about funding, growth, and the long game tells me you're already miles ahead of most people who rush in.
You don’t need to start big—you need to start smart. Best of luck

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