You have carried out the research and written the business plan, how do raise finance? Assuming you carried an initial research, you should have identified some suitable financiers that you could approach.

On writing your business plan, you should have identified how much you need and what you need the money for. When raising finance from external sources, it is often helpful to show that you have already raised money personally, which you will be putting towards the business. Showing that you are willing to take a personal risk yourself, financiers are more likely to want to take a risk with you.

Sources of finance can vary, the easiest and most stress-free source, is your savings. No one asks you questions, and you are not accountable to anyone but yourself. This is assuming you have saved some money before venturing out to set up your business. If you haven't, do not despair you still have a chance though more tricky.

Another source of finance is family and friends, who believe in the business concept and are willing to invest or lend to you the money interest-free. If you have a mortgage, you might want to consider getting a re-mortgage. However, this is quite risky and you would need to seriously consider this option and where you have a partner, discuss it with them as well as you financial adviser.

A popular source that almost everyone thinks of first is the bank. Raising money always seems to be synonymous with the 'bank'. Should you choose to go along this line, it is imperative that your business plan is sound. Sound, meaning it is well written, clearly defines the business idea, shows potential and return on investment. Simply put, your business plan is your written sales pitch towards convincing an investor to lend you money.

You could either apply for a loan or request an overdraft. Ensure you compare the interest rates and repayment terms offered by the various banks. Tip: Never go to your bank, the one you have a good existing relationship with first. Use other banks as a test bed to practice and refine your responses, presentation and business plan.

The government, local authorities and charities are another source for business loans and grants; again, you would need a business plan. Government loans often offer a cheaper rate of interest than the high street banks. These are normally available via Small Firm Loans or Schemes available in assisted areas or regions falling within the Single Regeneration Budget (SRB) programmes.

The local authorities and charities also offer cheap loans and grants, these are often dependent on the area you live in, while some grants and loans are even targeted specifically at ethnic minorities and some, like Prince's Trust charity and LiveWIRE, are targeted at young people, aged between 18 and 30. For a comprehensive list of Government and Charitable financiers contact your local business link office.

Amongst the above, you also have the Private Investors also know as "business Angels" and Venture Capitalists. This is where things get more intricate and not often as straightforward as getting a loan from the banks, govt or charities. However, the Private Investors are willing to invest in more risky ventures but most times in return for shares in your company.

Venture capital funds are funds put up by investment trusts, pensions funds, banks, insurance companies, private individuals, regional development agencies and industrial corporations. These funds look to invest in companies that can reach significant profits in three to four years in other to regain their money. When approaching venture capitalists, good management and operating in a large or fast growing market can be vital.

Once again, remember to conduct a research about funds available to you; on the Internet, go to the library, visit your local business adviser or a business consultant.