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  • Small business...

    Does anyone here know anything about small business ventures? I'm wanting to open my own business and I have no idea where to start. I know I need to get a loan, but I have no idea where to.

    I've looked on the internet and seen loans for 200,000 minimum 5 million max... and I'm not looking for that large. Maybe 100k, but probably not even that far up.

    I need maybe a template for a business plan and some good advice/driving directions on where to go with this plan I have. Anyone at all?

    -Mom
    Yer Mom /O>

    To all but me is the look given but never received. My heart sinks faster and faster every time I look into them, yet I do not understand their controling power on my soul. - W11114m W45h1n670n

  • #2
    Re: Small business...

    depends on if your selling merchandice or a service.

    the start up cost for selling goods is really large.

    The start up cost for selling a service is much smaller.
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    • #3
      Re: Small business...

      Check out this website. These people can help you.
      SCORE.org

      What are you trying to start?

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      • #4
        Re: Small business...

        Generally the first small business loan is hard to get, as you have no financials to provide the lender. Usually you'll need a couple/few guarantors to co-sign, and have something like 80% of the loan value covered in collateral for a first loan, if I recall correctly. At least that's what I can vaguely recall from my former job staffing a unit of small business underwriters.
        Beatnik

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        • #5
          Re: Small business...

          Originally posted by Hambergler View Post
          Check out this website. These people can help you.
          SCORE.org

          What are you trying to start?
          To that, I'll add: Small Business Administration
          [volun2]
          NS Game Officer. TF2 Admin. BF2 Admin / Scripter. PM with issues.
          Tempus: Pokerface is nailing it right on the head. Everyone who is arguing against him is simply arguing against reality.
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          • #6
            Re: Small business...

            If you're looking to get a start-up by yourself, and your parents aren't sufficiently credited or willing to co-sign you into one, You're looking at several (overcomable) obsticles.

            First thing is, there are loans designed specifically for small businesses. See poker's link in the above post. The thing is, you still need to find a bank willing to give you that loan. From personal experience, there is only one bank within 100 miles of me that even deals in SBL's, so you'll want to inquire at your local banks to see if they even consider it.

            Assuming you find a bank that would atleast listen to a proposal for a SBL, you're going to want to generate a bussiness model. You need to be as detailed as possible, and cover every possible angle you can think of. All of your potential start up, fixed and variable costs. Your evaluation of the market, what kind of competition exists as well as complimentary services that might increase your business. Any types of business you plan on doing, and how much you expect to be able to charge or recieve and your reasoning behind those numbers. Long term income assumptions and reasonings. If you're going to run/manage whatever this is, what makes you think you're capable of doing so. ect. ect. ect. Talking several pages, graphs, charts, you name it. But above all you must be able to prove anything you claim to some degree. Just making up numbers isn't sufficient.

            In the end what it will come down to is you convincing a bank that your proposed business can make sufficient money for you to afford to pay the bank back. It's true that a SBL doesn't necissarily take into consideration your personal financial ability to make payments, but you need to give the bank a very good reason to believe that you're capable of running a business that can. As always, significant investment on your part or co-signers/financial backers always helps.

            It's a lot of work, but if you can prove realistically that a business idea can make money, because of orginizations like the SBA, the money is out there.
            A friend of mine who owns a Dairy Queen even told me once that you have to be careful, because they're willing to throw money at you so fast that you'll never be able to see your rear again because of the debt. Granted, his parents were rich co-signers, but you get the idea.

            The key is just to be prepared when asking for a loan. If you show the bank that you have a very sound head financially and have really thought out all of the angles, the bank will be much more willing to tender you a loan than if you come in unprepared. Banks make money from lending money. No credit is not a huge issue, though bad credit is.

            And never immediately accept the first bank that offers you money. Shop around as much as possible, and see what you can get. That's just general advice for any loan.
            Last edited by Spyder; 08-15-2006, 01:02 AM.
            a.k.a. NinjaPirateAssassin
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            • #7
              Re: Small business...

              Best time to start a business is when you are already employeed. Lenders do not like to loan money to people who are self-employeed. Only if you have steady income or a high amount of assets will you get a loan. If you don't have a good credit history (600+ FICO score), forget about borrowing money from an institution. And if you have no history or experience in the business you are trying to start, that is a major strike against you. Best way is to start small with little overhead and your own money. If you need any equipment (computers, vehicles, etc.), buy used, not new. If you need startup funds, try getting a partner(s) or investors.

              Being self-employeed and running your own business is not for everyone. The best way is to talk to someone who is already doing it in your area, regardless if it is in the same industry. Every locality has it quirks with regards to demographics, economy, and laws. There is a whole slew of stuff that you have to deal with that has absolutely nothing to do with running the business (taxes, licenses, incorporation, insurance, etc) and it's better to get the real scoop from someone who actually deals with it on a regular basis. Get into the habit of keeping good financial records from the start (profit and loss statements, balance sheet, accounting 101 basically). And never, ever, do business in your own name as a sole proprieter.

              And the last piece of advice: have an exit plan. Just because you start a business, that doesn't mean it's going to succeed. Before you even start, know the scenario when you would have to close the business. This can be something like I have to make X amount of money in 4 years. Always remember that this is a business and do not get emotionally attached to it. It's a numbers game and if the numbers are not working out, it's time to call it quits. Wasting time on a deadend venture is unproductive. Learn from your mistakes and move on.

              Good luck.
              -33rd- BaneII
              Smokers & Jokers

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              • #8
                Re: Small business...

                You must spread some reputation around before giving it to Spyder
                great advice Spyder I am sorry I can't rep you for it.


                BaneII

                Plus rep for you that's some solid advice that I would definitely keep in mind if and when I decide to start a business of my own Thanks!
                sigpic

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                • #9
                  Re: Small business...

                  Yer Mom, you're 19 with no work experience. No one is going to give you an SBA loan. Those go to either:

                  A) An engineer and marketing pair who quit their six-figure jobs at a large company which they have been working for the last ten years to try an idea on their own.
                  B) Somone who has managed a restaurant for ten years and wants to open their own.

                  What happened to your Wal-Mart gig? Fall through?
                  -- Shroom
                  I tried smoking mushrooms once. Couldn't keep the pizza lit.

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                  • #10
                    Re: Small business...

                    Originally posted by Drizzid View Post
                    BaneII

                    Plus rep for you that's some solid advice that I would definitely keep in mind if and when I decide to start a business of my own Thanks!
                    That's cause I got my business degree from the School of Hard Knocks. ;)
                    -33rd- BaneII
                    Smokers & Jokers

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                    • #11
                      Re: Small business...

                      yermom - what is it you're planning on doing? I think that would help to know... i recently started out on my own doing consulting work, so i've looked into a lot of the logistical things of starting a business - fortunately there's really low overhead in what i do, so i didn't need any loans...

                      anyway - let us know!

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                      • #12
                        Re: Small business...

                        Originally posted by WhiskeySix View Post
                        yermom - what is it you're planning on doing? I think that would help to know... i recently started out on my own doing consulting work, so i've looked into a lot of the logistical things of starting a business - fortunately there's really low overhead in what i do, so i didn't need any loans...

                        anyway - let us know!
                        Indeed... setting up a small business like W6's is more about the logistics of calling yourself a "business" than securing funding for a retail venture.

                        I'll repeat the obvious here, but what type of business you're going for really matters bunches.
                        [volun2]
                        NS Game Officer. TF2 Admin. BF2 Admin / Scripter. PM with issues.
                        Tempus: Pokerface is nailing it right on the head. Everyone who is arguing against him is simply arguing against reality.
                        <anmuzi> it is not permitted to have privacy or anonymity
                        <LazyEye> yeah when I play on TG the server digs though my trash

                        Arm yourself with knowledge: TG NS TF2 BF2

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                        • #13
                          Re: Small business...

                          Obviously, a loan is not the first thing that should be on your mind when you think about starting a small business. I went down the road of starting my own business when I was about 20. I came up with an idea and a plan and I pitched it to a government program for young entrepreneurs. I then spent my loan on a car and failed to get my business off the ground. I was young and stupid, but I got a car out of it. :p

                          Unfortunately, I had to pay back the loan. :(

                          I settled for just completing my degree after that. Now I could buy a car of equivalent quality every two weeks if I wanted to.
                          Peace through fear... since 1947!

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                          • #14
                            Re: Small business...

                            A business plan is a MUST. Even if it seems tedious and full of things some might call "common sense", it can really get you on track. I would pick up a book at the local library about business plans and starting small businesses.

                            I would search for your state laws on starting businesses and taxes, learn if you want to set up a proprietorship, if you are going to have a partner, set up an LLC or even a corporation. Learn the differences, the benefits, and especially how your state handles taxes with these businesses.

                            In Illinois, to "start" my business all I had to do was publish in the paper and then send in that, some form, and a small fee to my county office to be registered as a business.
                            USAR

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                            • #15
                              Re: Small business...

                              in massachusetts, you can actually incorporate online!

                              https://corp.sec.state.ma.us/corp/Lo...Formation=True

                              perhaps you're state has such a form?

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