Investment - funding - Business

[BazR]

Has anyone on here started a business recently? I think I have covered this before on RT but need a refresh.

Whats the options for start-up money currently? is the banks going to lend me anything?

I have got suppliers and working on location, but without money I am goosed.

[Punx0r]

Have you got Business Link over there? It's a free service giving advice/tuition to startups and small businesses. They also run free courses every now and again.

I think your main option for funding is still creating a solid business plan and then pleading your case to the bank manager if you need serious cash.

Personal loans can be used for lesser amounts and there's no need to plead your case. Some lenders are happy for the money to be used for a startup. Although some people tell a fib and say they're going to spend it on decorating or something.

[BazR]

Hmm, the startup costs are going to be big though, around 40K at least. Not sure if I can bluff that sorta cash.

[mg-richard]

Im pretty sure you would need the capital to borrow against, do you own a house?

Mind you if your investing in stock and have a real good business plan you might be able to get some

[BazR]

Im pretty sure you would need the capital to borrow against, do you own a house?

Mind you if your investing in stock and have a real good business plan you might be able to get some

I am yeah Richard. I have toyed with the idea for long enough and I want to push ahead. The problem is, which you may know, you need stock on the shelf to sell it. The business plan end of things could make or break it.

The way I am looking at life/work currently is either I...

Work for a muppet and make him money

or

Work for myself and make me money

Many a man has tried and failed I am sure, thinking the exact same thing. But I am still young(ish), no kids (yet). I gotta try.

[mg-richard]

Im in total agreement

Its the same story of if you have money its allot easier to make money

There is some good ways around stock especially if doing mail order

But I have exhausted every way and not having it sat on the shelf behind you makes things allot more stessful and less efficient.

Also another thing I have found.

If you overstock or someone doesnt turn up for something, aslong as what your buying it trade price for that item, which it will be.
All you need is an ebay account with top rated status (this is critical) and you can sell it at cost all day long and get the money back

I think another piece of advice is dont go limited. The reason being you only take income as a company director which means you cant get a good deal on a mortgage lol

[98Ti]

Can't believe the timing of this post. Me and my younger brother are looking into opening a care provision franchise, he's been in the business for years and knows his beans. Over the last few months he's been with his new emplyer who was on the verge of closure and he's turned it all round to starting pulling in a massive profit for the owner - then he takes home less than 20k You're right about the options in life, work your nuts off to line somebody else's pockets or if you get lucky you can run your own business.

Our only problem at the minute is raising the £30k buy in, the there's the matter of premises and finding first months staffing of £25k

Not got as far as the banks yet, but that'll be make or brake for us.

Matt

[fergy7197]

hi Baz,

totally agree with your idea, hope it all goes well, if you have a sound, structured and carefully thought through business plan as well as a sensible cashflow forecast, you might be able to get some funding help.

i recently started my own business I funded it myself, with a small loan from my dad which is nearly paid back, tough going, I wish you all the best

[darwin]

http://www.investni.com/index.htm

[BazR]

Some cracker replies there guys, thanks.

This last ten years I have spent in stores and it appears to be something I can do reasonably well. I am hindered at work because I cannot put my ideas forward to improve it. I am frustrated with inefficiant ways and poor management basicly. I have offered solutions, but they are probably thinking I am trying to do their job for them and take insult from it.

As I read the above paragraph back to myself, it does indeed sound over confident maybe, but is this not what you need to be to push forward, to take a leap and succeed? Needing money to start up is one thing, but being in the right frame of mind is another. I do ask myself if I am wise at all when I run over the idea in my head every other night.

I am very close to one of my superiors whom also owns half the place and if I follow through with my plans I would be in competition with him and soon thoughts of betrayal spring to mind.

Its hard to know what to do.

[Punx0r]

I mentioned businesslink earlier, their website is also very useful and IIRC they have a decent template for a business plan.

Any bank giving you a business loan will expect you to personally guarantee it and most will expect you to put in some of your own cash into the pot.

You might be surprised how supportive the other guy is if you're not directly trying to take his customers... Presumably you have identifed some kind of niche for this business? It'd be a brave move to set up shop next door to an existing business, do exactly the same thing and try to just take their customers

A lot of people say that the business plan is important in itself rather than just as a tool to borrow money. It's a massive pain in the arse to write but it does make you consider stuff you might not otherwise have thought of.

I was advised that when talking sales/costs/profits, bank managers like to see not only your predicted ones, but also worst-case ones (that you can cope with) with a big gap between the two.

[618ireland]

I am very close to one of my superiors whom also owns half the place and if I follow through with my plans I would be in competition with him and soon thoughts of betrayal spring to mind.

Its hard to know what to do.

You have to look after number 1 Baz

I wish you all the best with this one, I loved working in stores in a motor factors, the day used to fly by. When I first started working there it was part of a nationwide chain (TopPart), it was part owned (33% iirc) by a local lad who had parted ways with the company over some issue or other, he got next to sweet f all out of his share. He set up another factors himself though out of a terraced house just outside the city centre, after a couple of years he moved to a much bigger premises near enough to the one he used to part own and put a big advertisement across the road from us After another few years he moved again (the place I worked in was in dire straights then due to bad owner decisions etc and closed eventually, they no longer have an outlet in Cork) to a very substantial unit and in the last year or so has opened a Kwik Fit type tire and service centre next to his factors.

If you have the motivation and you reckon that enough folks will buy off you it is well worth pursueing. Now getting £40K off the bank is another matter that I can't offer any advice on.