10 Things Mobsters Should Check Before Securing Business Funding
Hey Mobsters! It’s Sophie here from WrightCFO, your go-to expert in business finance, and today we’re talking about something that can be a game-changer for your business: getting funding. Whether you're looking at a loan, an investor, or other types of finance, knowing the right steps before you dive in can save you heaps of stress and money.So, let’s walk through 10 things you need to check before you go knocking on those funding doors. And yes, I’ll share what kind of funding this applies to, when it’s a GOOD idea, when it’s not-so-good, and what risks to watch out for. Ready? Let’s go!Types of Funding We’re Talking About
First off, funding comes in many shapes and sizes:Business loans (bank loans, government-backed loans)
Angel investor or venture capital
Crowdfunding
Grants
Lines of credit
Each has its pros and cons, but they all require some prep work. When Is Funding a Good Idea?
Getting external money can be brilliant when:You’re scaling quickly and need capital for inventory or staff
You’re launching a new product or service
You need to manage cash flow during a slow season
You’ve identified a growth opportunity but lack the funds
But it’s NOT a good idea if it’s just to cover ongoing expenses that should be covered by your profits.
10 Things You Need to Check Before You Secure Funding
1. Your Business Plan is Clear and Strong
You want to be able to explain exactly what your business does, your target market, and how the funding will help you grow. 2. Your Financial Statements Are Up-to-Date
Lenders and investors will want to see recent profit & loss statements, balance sheets, and cash flow reports - so keep them accurate!3. Check Your Credit Scores (Personal and Business)
Good credit can make or break your chances. Know where you stand before you apply.4. Know What You Can Offer as Collateral
If it’s a loan, what assets can you put forward? Your house? Equipment? Be clear on this.Do you *REALLY* want to put your house or other personal assets on the line? Think carefully - this isn’t something to rush into lightly.
5. Be Clear About How Much You Need and Why
Don’t just say ‘I need money’. Be specific about the amount and how it will be used - more on this below.6. Can You Repay It?
Be honest about your cash flow. Do your projections show you’ll be able to meet repayments comfortably?7. Legal and Regulatory Stuff Is Sorted
Make sure your business is compliant and all legal ducks are in a row.8. Prepare Realistic Cash Flow Forecasts
Show lenders/investors you understand your income streams and expenses, and that you can repay the money.9. Gather All Supporting Docs
Tax returns, legal documents, proof of business activities - have these ready to go.10. Build Good Credit Profiles
This goes for both you and your business. Pay bills on time and keep debt levels manageable.What Are Reasonable Reasons to Ask for Funding?
To grow your team or inventory
To invest in marketing or new tech
To expand to new locations or markets
To cover a temporary cash flow gap during slow periods
What Are NOT So Reasonable Reasons?
To cover ongoing losses or poor cash management
To fund personal expenses or luxuries
To make up for bad financial planning
The Risks You Need to Know
Getting funding isn’t without its risks:
Debt Burden:
Too much borrowing can weigh down your cash flow.Loss of Control:
Taking on investors might mean sharing decision-making.Legal and Contractual Obligations:
Missed repayments or breaches can harm your business.Overestimating Revenue:
Relying on unrealistic forecasts can lead to trouble.
Remember, Mobsters, the goal is to use funding strategically to empower your business, not to create extra stress. Do your homework, be honest about your finances, and focus on sustainable growth.If you ever need a hand figuring out your financials or which funding options are right for you, you know where to find me — here at WrightCFO, always cheering on the Mums who Build!Connect with me on LinkedinAbout Mums Who Build
Mums Who Build is a mission-led community for ambitious mums at a pivot point, whether that’s navigating maternity leave, redundancy, divorce, burnout, SEN parenting, or simply the feeling that your old career no longer fits your new reality. We’re not another fluffy mum group. We are your board of directors who get it, a network of women who’ve been there, who are building too, and who are ready to lift you as you take action. Through our regular in-person mum meet-ups, skills workshops and networking, across London (Walthamstow, Stoke Newington, Crouch End, and soon Notting Hill) and our online membership, MOB+, we give you the tools, skills, and accountability to grow in your career, your business, and your financial confidence. Our three pillars of wellbeing, connection, and financial fitness are designed to help you rebuild with purpose, prioritise yourself without guilt, and use motherhood not as a barrier but as your launchpad to thrive.