One idea to Build your Business, one idea to Scale your life. Every Wednesday.

Welcome to Winformation Weekly. My 13 years’ experience of growing a business from £0-£100m, and the life that goes with it. All wrapped up, in one winning weekly email.

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Winformation This Week…

Negotiation is one of the most important skills for both business and life. These days, whenever the subject of negotiation pops up, everyone is too quick to start recommending the book “Never Split the Difference” by Chris Voss. I’ll be honest, I don’t like it. We look at the Thomas Klimann approach on how to negotiate for long term success in today’s Life Section.

One of the biggest headaches in business is funding. Start up, scale up, exit. Whatever stage you’re at it seems you need finances to do it. In today’s Business Section I go through 20 ways you can do this. Our business was started with a mixture of 1 and 12 and then scaled using 13 mainly. 11 I think should be avoided at all costs, and if I was starting again, I would straight up use 17, takes longer but well worth it.

Business

20 Ways to Fund Your Business Without Selling Your Soul

Funding in business can be complicated, risky and scary. I need to fess up straight away, this is not my area of expertise. I have always relied on more money-savvy business partners. But I know the basics.

Here are 20 ways you can fund a business at any stage of its life.

1. Personal Savings (AKA "The DIY Approach") You fund the business yourself, no loans, no investors, just your own hard-earned cash. It’s simple, but risky if things go south, so does your savings.

2. Bank Loan (AKA "The Classic") Old-school but reliable. You borrow a lump sum from the bank, pay it back with interest. Good for people with solid credit and a proper business plan.

3. Government Grants (AKA "Free Money If You Can Get It") There are grants for startups and small businesses, but they’re often industry-specific and require paperwork that could put you to sleep.

4. Business Overdrafts & Credit Lines (AKA "Emergency Fund on Demand") Think of it like a safety net banks let you dip into extra cash when needed, but interest rates can be brutal if you overstay your welcome.

5. Asset Financing (AKA "Buy Now, Pay Later For Businesses") Need expensive equipment, vehicles, or machinery? Instead of buying outright, you spread the cost over time.

6. Invoice Financing (AKA "Turning IOUs into Cash") If customers take forever to pay, you can sell your invoices to a finance company for quick cash. They take a small cut, but at least you get paid faster.

7. Merchant Cash Advances (AKA "Borrowing Against Future Sales") You get money upfront and pay it back through a percentage of future card sales. Good for retail businesses but can be pricey.

8. Angel Investors (AKA "Rich People Who Believe in You") Wealthy individuals invest in your business in exchange for a slice of equity. They might also give you valuable advice if they’re not just in it for the money.

9. Venture Capital (AKA "Sharks with Deep Pockets") VCs invest big money but want serious growth potential (think the next Uber, not your side hustle). They’ll take equity and probably some control too. Avoid if you can.

10. Private Equity (AKA "Big Business Backing") Usually for established businesses looking to scale. Private equity firms inject cash but often make big changes to maximise profits.

11. Crowdfunding (AKA "Public Donations, But for Business") Simple, but risky mixing business with personal relationships can get awkward if things go wrong.

12. Friends & Family (AKA "Borrowing from the People Who Love You") Simple, but risky mixing business with personal relationships can get awkward if things go wrong.

13. Revenue-Based Financing (AKA "Pay Back When You Make Bank") Instead of a loan, you get funding in exchange for a percentage of future sales. Good if you don’t want fixed repayments.

14. Joint Ventures & Partnerships (AKA "Find a Business Bestie") Team up with someone who has the cash and skills you need. Just make sure you trust them, it’s like a business marriage.

15. Bartering & Sweat Equity (AKA "Trade Skills, Not Cash") Swap services instead of spending money. Example: A web designer builds a website for free in exchange for a stake in the business.

16. Pre-Selling Products/Services (AKA "Sell It Before You Make It") Instead of waiting for money, you get customers to pay upfront for a product or service that’s still in development. Works well for online courses, software, or limited edition products.

17. Side Hustling (AKA "Work Extra to Fund the Dream") Keep your 9-to-5 (or start a side gig) while you build your business. Less risky, but it takes longer to go full-time.

18. Subscription & Membership Models (AKA "Get Paid Again and Again") Instead of one-off sales, charge customers monthly or annually for ongoing access to your product/service. A great way to create stable cash flow.

19. Startup Loans (UK Government) (AKA "The Government’s Helping Hand") A government-backed personal loan (up to £25k) specifically for new businesses. Lower interest than banks, but you still have to pay it back.

20. R&D Tax Credits (AKA "Get Rewarded for Innovation") If your business involves innovation (tech, science, new processes), you can claim tax credits or even get cash back from the government.

Life

How to Negotiate Smarter: The Thomas Kilmann Model

Back in the 1980s, sociologists in America discovered there didn’t need to be a loser when it came to negotiation. It is because successful negotiation involves finding solutions that help both parties. Of course, that’s easier said than done. Going back even further to the 1970s, two American blokes, Ken Thomas and Ralph Kilmann developed their own strategy that identified different approaches to resolve the kind of conflict than crop up in negotiation. This all makes sense. Here’s a quick guide to show you how to do it.

It's not about battering suppliers into submission. I get it, price and quality is still the name of the game if you’re buying products. Just not at the expense of everything. You need to know your products have been sourced in the right way. It’s unlikely your customers want goods associated with unethical practices. So, get to know your supply chain. You’ll build good relationships that way, not to mention supplier loyalty.

Don’t bite the hand that feeds. When you collaborate with suppliers you are effectively building a long-term relationship. They’re far more likely to offer real value to you than if you’d strong armed them. Do that and there’s a risk they’ll hold it against you and take short cuts producing whatever it is you’re buying from them. Worse still, if your supplier has been given the nasty end of a stick when it comes to negotiation, they might go under. Then you as the buyer are in trouble.

Be both cooperative and assertive. Being cooperative isn’t about being a pushover, far from it. As the Thomas-Kilmann approach outlines, a win-win negotiation is the right blend of collaboration and competition, along with being accommodating.

Make win-win your aim. It’s all about being prepared. You’re not going to war, you’re going on a journey. If you’re asking for something from your supplier, make sure you actually know exactly what you want. Be prepared if that isn’t available and have a best alternative desired outcome if your negotiation falls flat. With that in mind, it’s best to get a feel for what your supplier wants. If both sides come to the table with this mindset good things can happen. So be open, be honest and start talking and you can win together with your suppliers.

Chris Voss is a hostage negotiator. And so his book Never Split the Difference points to the conclusion that all negotiations need a clear winner. I suppose if there’s a life on the line, then that’s obvious. You also don’t need an ongoing relationship with a hostage taker. But negotiation in life and in business is different. Negotiating so there is a win win means your suppliers and clients will keep coming back.

Until next week! 

Let’s win, together!