Raising the money
Business Plan When approaching individuals or organisations for finance you will need a good business plan. You should adapt it for every pitch.
CDFIs (Community Development Finance Initiatives) can also help provide loans for businesses with a viable proposition and no security. For CDFIs in your area see www.cdfa.org.uk.
If your idea has an artistic or community angle look at a small 'Award for All' lottery bid - £5,000 could give you a way of testing your product/service in your local community.
Banks are not risk takers and in order for them to back you they will want security. If you don't have any then you may be able to get some backing under the Small Firms Loan Guarantee Facility but the bank must want to help you.
Investigate any grants that may be available to you by talking to your local Enterprise Agency or Business Link.
Put yourself in the lender's shoes and show how you will repay the money. Ensure your finances are based on reality not wishful thinking.
Banks are reluctant to fund early stage companies with little in the way of a track record. Offer shares in your business to friends or relatives, or consider approaching a business angel investor.
Friends and Relatives can be a good source of support, but make sure you have a clear contractual arrangement in case things go wrong.