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Best ideas for how to come up with start up money--we are starting small with a home based business but even to join the Chamber of Commerce it costs $250, and I need a reliable vehicle for deliveries and possible even a little inventory and marketing money, you know, the usual. I am going to try to a loan from the local bank and then ask for an SBA guarenteed loan. I graduated from Women/s Econcomic Ventures entrepeneurship course and do have my business plan written but do you have any ideas for me to use before the loan is in place? Thanks for your input! |
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For both of my businesses, and for my husband's business, bootstrapping has been our funding method of choice. What this usually means is that I start the business on the side while working a full-time job, siphoning off incoming cash to the business. It can be exhausting, but it means that you really prioritize what's important to the business while you're starting up. One of the key challenges about this method is knowing when to dive fully into the business. With my first business, The Spanish Accent, I used MS Works to figure this out because it was the only free thing on my computer. With Jeff's business, we've used some of the various calculators here on JumpUp to start figuring this out. Other options besides bootstrapping: Hope that helps, Kira |
WELL I AM STILL LOOKING FOR START UP FUND. PEOPLE ARE GETTING MY BUSINESS PLAN BUT NO ONE HAS SAID ANYTHING REASONABLE ABOUT ASSISTING ME. WELL IF THERE IS ANY HOW YOU KNOW I CAN BE ABLE TO START UP PLS TELL ME. I NEED ROUGHLY $24,000. THANKS. |
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Look for a lender who does a lot of SBA loans. Maybe there is a governmental economic development agency in your area who either has these loans available, or can point you in the right direction. Look at your business plan, is it easy to read and well organized? Does it have an executive summary for the first page, including a description of the startup loan terms that you are looking for? Is it about 20 - 25 pages in length? Do you describe your industry and customers in the marketing section, and how you are going to market to them? Do you have believable financial projections and related charts included in your plan? What about your leadership skills. What makes your firm different? Do you have a mission statement and a vision statement? Do you have a short list of 5-7 critical success factors? (these are mission critical issues / events that must happen or be addressed in order for your business to succeed? These are just some ideas on what you can look at. There is a section here under resources that helps with business plan polishing. Rolaine |
Hi Cliff, I don't know how your Chamber of Commerce works, but ours is great... Yes they do want you to join, but you do not have to until you can afford to. Our Chamber as been the most help to me, From free financial advice, to assisting me in writing my business plan for funding and it was free, Go online to SBA online, or your local Chamber website... but in TN where I live they are the BEST, Also look up SCORE online, there are even free business workshops (They will get you thinking and motivated) Don't give up the only one that can do it is you.... |
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Roaine has some great comments! Business success starts with a proper business plan. Without a plan your company will be doomed for failure. If you are looking for a loan greater than $25,000 you must also plan on a repayment strategy. A lot of potential business owners miss out on the fact that loans have to be budgeted into the monthly expenses. Every day we see business plans at our office that have every single expenses EXCEPT the loan repayment! Cliff - In your question, there are many options. Have you considered going to a loan broker or exploring the vast business networks online? Jumpup is a good meeting ground however there are other portals that can connect you with lender directly. Ilya Bodner Initial Underwriting Group |
 10.30.2007, 11:04am |
Most people use a home equity loan or family loan for start up, since most lenders require 25% cash infusion for small business loans....As a commercial loan specialist, if you have any questions, please feel free to email me at christy@loanforbiz.com.......... Advice is always free |
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Christy, Although most business start ups tie in their personal assets that is not the best way to go about it. In fact, I would ask most business owners to stay away from 25% cash infusion small business loans or anything asking for such a large personal commitment (especially for smaller business loan amounts). Feel free to look at the writings of www.strongbusinesscredit.com - do you disagree? Ilya Bodner Initial Underwriting Group |
10.30.2007, 11:47am |
Ilya: However, SBA requires 25% down in cases without buying property with the buisiness....I do this all day long sorry to contridict!! |
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Christy, Your thoughts are very helpful. What I was suggesting is that a business owner has alternatives to choose from. SBA loans are a great option but before going down that route it is best to explore. Ilya Bodner Initial Underwriting Group |
If one is not working and have no disposable income, how can you apply for any loan...SBA or otherwise. I only need approximately $10,000 for my VA (Virtual Assistant) business...however, I do have another business idea that is great and will require way more than that, but I am trying to start off small. I can't even get any credit cards because they are based off of my credit and well, lets just say it aint so good...AT ALL. |
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Hey guys, I was just at a grant seminar...yes, I know...watch out! I went to get ideas and information on how to fund my small business. I have an office from home which is where I am going to be working so I don't need much, just some seed money to tie me over until I can start invoicing and such. Well, to my surprise, there are grants out there that we can apply for. Which, once funded will help out a bit. The fiscal year for the Federal Government is October 1, 2007...they have over 200 BILLION dollars to GIVE AWAY. Its just a matter of finding the grant that is just right for you and your business. The SBA might be able to help some. So check out the nearest one to you. Ask them about the grants and hopefully, someone will lead you to a great opportunity! |
I was interviewed by Anita Campbell of Small Business Trends on the subject of where entrepreneurs can find start-up cash. Perhaps the audio will be beneficial as you continue your search. http://www.smbtrendwire.com/2007/08/23/places-for-entrepreneurs-to-find-cash-for-business/ Shirley George Frazier http://www.SoloBusinessMarketing.com |
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Thank you! Will look into it. |
Grants are hard to come accross and typically even harder to get approved for. Although they are everwhere the ones that need it the most cannot receive grants. Shirley Frazier has a great link on here and I wish Bmartin2861 luck! I have put together some articles on www.StrongBusinessCredit.com that help some business owners understand the difficulties of alternative financing. Some things on there contridict solobusinessmarketing.com, I am curious for everyones feedbacks. If anyone has a positive experience with grants please let me know, I am curious if there are some testimonies. |
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The SBA isn't the only option. I got scammed pretty badly by one of those grant assistance companies, but then I did find one good one for all that. http://www.grantability.com Before I signed on with them they told me these tips, which I now pass on to you all(and I'm sorry if this should go in a scam avoiding section). 1. Be wary if someone promises you a grant. No third party is is a position to promise an individual a grant of a specific amount. Only the government or foundation who has the money can promise or issue it. 2. Grants are generally given for business start-ups, home purchase, and education. There are other programs of course, but personal grants and grants for debt relief are rare enough that I have never heard of one. If a company promises you a grant to get out of debt or to pay off credit cards, watch out for them. The best debt option is usually consolidation or refinancing. 3. This one is tricky, but before agreeing to anything, call every number they have provided you with. If the customer service number is different from the sales number, and there is another one for refunds, be wary and call to confirm. 4. How are they asking for payment? Do they accept credit cards, cheques, money orders? Credit cards are one of the easiest ways to pay, and also the easiest to trace. If they do not accept them, there may be a negative reason. 5. If a company says they are affiliated with another company, call both and check the stories out. |
Great information Mary G! I was an executive admin at a university and helped the researchers with submitting for grants. I worked there for almost 4 years before I was RIFed. Most of them were funded...one or two had to be rewritten for scientific questions...but eventually they got funded. I thought about refinancing but I haven't been working and some of my creditors have been paid late...so, its going to be hard for me to go that route. I attend some of the seminars to obtain information, but I never "invest" in them....primarily because I don't have the amount that they are requesting which is usually at LEAST $1,000. I am amazed at how many people will flock to give them a credit card or check for their two day class that is suppose to "teach" them how to properly apply...yada, yada, yada... Thanks for the link! I will definitely check it out! |
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Well i do not know what to say the start up we are working on is a ranch for termineal ill kids and we are looking at almost 2.5 mill by the time we can welcome the first child. all i get from other places like what we want is dead air we can not help you go away there has to be away to do it we do not want to go into debit that we are free to use all the moneys on the kids please help sorry if this was the wrong place to post this rickyg/imzade ranch |
Are you trying to do it as a non profit organization? check with your local SBA, they might be able to help you. If not, for a grant of 2.5 million, you may have to seek out trained personnel who have dealth with grants of that size. I have help the doctors at the university obtain grants that size but nothing in association with what you are seeking. Good luck to you. |
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What is the right avenue for grants if anyone knows? So that not to be scammed and a few diferent options would be great. |
Peggyd7, I have some experience in grants because of working at a university and the doctors that I supported would submit for them. That opened up various avenues for me. Since I have not worked there since May of this year, what I do, is I go to the seminars that come to my location and I LISTEN...I DO NOT PURCHASE ANYTHING. With most of the seminars, to purchase a membership is like $1200-1400. And of course if you do it THAT day its only $999! There are some websites that you can go to. I lucked up on a disk a couple of months ago that is a Grant Writer Pro. I haven't used it yet, due to my getting my business plan together. I dont remember what website but I ended up with this cd free. So check on line and see what you can find. Research, research, research! |
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It seems when ever you try to pull up grants online though you get about 2 million scam sites you have to go through....I have liked the advice above about grants so far and have been learning. But if anyone knows any solid info to pass on I think it's interesting. |
You can contact your local SBA office. They might be able to give you more solid leads. I am going there next week myself with my completed business plan. |
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Good luck on your business plan! |
Thank you! I hope you can find reasonable information to assit in funding. I will post to talk about my experience with SBA. I have a few friends who went there and they helped wonderfully with their businesses. Which is why I recommend them so freely. If someone has had a different experience, please enlighten us. |
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I've found this entire thread very enlightening. Thank you all! |
You can register with the Federal government to receive email notices about every new grant that is offered by any Federal agency. It's free. It helps you weed out the legit ones from the scams. their website = http://www.grants.gov/ They offer many, many grants, but most are earmarked for non-profit agencies, tribal councils, educational facilities and municipal governments. A few agencies like the US Environmental Protection Agency offer grants to small businesses, but these are very specific in nature. You can also do an online search at this website whenever your want to. Grant descriptions or requests for applications as they are called tend to be very wordy and are full of stuff you have to do to apply, and they are really paperwork intensive to apply for. Most states publish a State register. This is a newsletter that comes out every so often and lists all state grant opportunities, changes in regulations and other press releases. This is very helpful. Most have an email sign up list so you can receive automatic updates to read at your convenience. Besides the US SBA, check out agencies that do similar stuff but are local - sponsored by County, or Municipal and sometimes state governments. These smaller programs are usually called industrial development agencies or economic development agencies. They are actual government sponsored programs. You also want to check out your region's department of labor. They offer many freebie referral or employer help programs, including training grants to help you train your workers in missing skills needed in your business. Grants are wonderful if you can get them, but are exceptionally hard to come by so most businesses consider them out of reach. Watch your local newspaper. Sometimes firms will offer private grants to local groups as a community service, and this will be published somewhere, usually in the community news section or in the legal notices. Opportunities to bid on purchases made by governments also appear in the legal notices. These are often called RFPs or requests for proposals. |
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This is in response to BMARTIN2861. I'm in the same place as you. I started an online store a year ago. I am disabled and can't hold a regular job. So my income and ability to get a loan or credit card is limited if not nil. I have a disc for grants and I've been going thru it for several weeks now and I can't find a thing that would give me money for my business. There is nothing out there unless you have good credit or have a non profit business. Lots of grants for them. I wouldn't have a clue how to put in a proposal for the SBA. My business requires a lot of advertising. Just my Google Adwords, if I use the suggestion for 100% usage of my keywords, would cost me $90 a day. That's $32,400 a year. No one is going to give me that kind of money. Right now I use streams and banner exchanges. I'm spending about $400 a month just to get my store into the search engines. That takes a lot of work and my knowledge is very limited but thru trial and error, I'm getting into the page rankings a little more than I did 6 months ago. But to date I've only sold 2 items and that's not good enough for a loan of any kind. I wish you luck, but I can only see that it's going to be a tough road. |
im looking for start up money to start my own business.i have no credit. dois anyone know how i could get a loan or grant?email me at uri33derr@hotmail.com, thanks, Uri |
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I lost my job as a Network Administrator last year. Unemployment ran out before finding work ... then I decided to just jump in with both feet (good thing I float). Started a web design and hosting business from my home office. Pay $24.95 a month for my reseller account for web hosting, and things have been pretty good since. Here's the kicker ... I started this business making about $216.00 a week working part time as a bench technician repairing PCs two days a week. The business is still in its first year of operation, and clients are hit and miss, but when they do come they come it bursts, several at a time wanting the full meal deal of ecommcere, design, hosting. Still have yet to land the big fish, one got away 'Columbia Helicopter' but hey I gotta keep trying. What I'd really like is someone willing to loan me about $40k for a stake in the company or similar. What does anyone thing about that? My site is http://www.idreammediagroup.com if anyone wants to take a look and see what I've been attempting to do. Thanks! |
Eightball - Try searching for "strong business credit" (just like that in quotes) and see what companies can help you find a loan. To get business credit you need to invest $300-$1300 and afterwards you will get a loan...possibly. Sincerely, Ilya Bodner Small Business Owner Initial Underwriting Group |
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IIya Thanks I'll look into that. It's tough doing it like this and I'd like a little operating cushion. To pay a year in advance for things like my hosting services box, do some print ads, and some promotional goodies. Thanks again. |
I understand. You always need a "buffer" to get things going. That is why business credit is so important. We try to preach to our clients every day on how crucial it is to have business credit for survival. Start early so that in 10 years you look back and actually have something to fall back on. Sincerely, Ilya Bodner Small Business Owner Initial Underwriting Group |
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That's a good point llya! Also remember that: There are many ways in which business credit can help a business through the good and the bad times, and allow it to prosper. Some of the most common are for purchasing supplies and inventory on credit, instead of paying cash; which can reduce working capital and a company’s operating budget. In order to get a true business loan, which is not dependent on, nor does it report to the owner’s personal credit, a business would rely on having a strong business credit rating. Other purposes are for acquiring contracts for such things as utilities, and business to business relationships. In the case of B2B (business to business) relationships, if an established company is asked to do business with and extend credit to a newer company, the newer company’s odds would be greater if it had an established credit file. |
I would recommend a grant for you. Credit is going to put you in th hole and why should you start a business and have to work another job at the same time in the red with advertising, product, rent, phone etc. etc. etc. I have recently ran into an old flame of mine. We got to talking and she told me that she was working on developing a boutique talent agency in LA. I told her that I was working on a record store idea. After arguing about whether or not it would work, she finally told me this. |
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"I think that you should get a grant to start this so that when you fail it won't bankrupt you". This understandably pissed me off, but she gave me a site to look at and I did so begrudgingly. I didn't know that you could get a grant for a business, but the government has many programs where they give you money for all kinds of things. They say that they want to entice more people to start their own business and become independent, so they can pay more taxes I guess. I looked at what they offered in the e book and I bought and read some of it. There are so many programs and loopholes that it is difficult to sift, but I just applied to all of them. It takes patience and time, but this is the best way that I think could yeild some results. If you would like to take a look the site is http://mn1988.grants4all.hop.clickbank.net/. I would recommend this to someone who is serious, but it does take patience. I am still waiting on a reply, but they said it would take a few weeks for one. I am already buying records for the store. Wish you all the best of luck. |
Grants are not a viable option for a prosperous business. Do things the right way and borrow if you have to. Sincerely, Ilya Bodner Small Business Owner Initial Underwriting Group |
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Someone called my business cell offering to help me, but I'm a touch leary of getting funding from someone I can't meet with. I looked at the Grant site ... and honestly it's "scarey" if you get my drift. So in the mean time I've been contracting out to other design firms that can't get it done, and Craigslist. Been ok, but now it would seem the contractors are having trouble collecting and paying me. So I went with a new policy of pay me 50% upfront the balance on completion. Thanks for all the great info and if someone has other funding ideas, I'd love to hear them. Particularly ones where I don't pay something out and get nothing in return. "I am not a fool and am not soon to be parted with my money." Stephen Proffitt iDream Media Group www.idreammediagroup.com info@idreammediagroup.com |
Stephen, Be careful of Craigslist. Its a great site but there are a lot of abusers on there. Grants are a joke, as I've mentioned earlier do things the right way - lend! Business financing offers the alternative to personally guaranteed loans you get at the bank. Search for "strong business credit" (just like that in quotes) via google or yahoo to find a good match for you. All of these services cost $1000+ upfront BUT you get a decent amount of financing options in the short-run. Sincerely, Ilya Bodner Small Business Owner Initial Underwriting Group |
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