Home: Message List - Financing your first business

Re: Financing your first business

upandcomer — Mon, 09 Jun 2008 17:04:35 GMT

I plan on finishing college this year, and during that time I will find a suitable location for a bar. As soon as I get out of school I will work during the day and start getting through all the red tape at night, and in two years take out a loan and remodel a vacant building. In another year the business will be operational. So basically the business will be operational in four years from right now.

Re: Financing your first business

Iwrite — Mon, 09 Jun 2008 16:52:11 GMT

Thanks for sharing.

I am trying to get my agency on its feet with as little financing as possible. I am saying that I haven't had to finance anything yet but I'm in the early stages. My plan is to use as much of the equipment that I already have, and work from home unitl the business flow is such that I need to get a space.

My accountant likes my plan, and thinks my projected numbers are good. I just need to land one or two nice size clients to make this work.

That's my plan.

Financing your first business

Bridge — Sun, 08 Jun 2008 03:18:22 GMT

With all the postings of people looking for money to start a business, I thought it would be nice if members shared their own quick stories on how they financed their first business.

I'll start us off:

After disusing options with my wife, I took a home equity line out for the full amount of equity in our house (can never have enough money and it is hard to go back to the well - get as much as you can the first time).

The plan was, I would try the business for two years and if it did not work out, we would sell our pay, pay off the first and second (equity) mortgage and start over.

I've been in business 2 years and have a $0 balance on the equity line.

If you are not ready to risk your own money, ask two questions:

1) is your business plan sound
2) why would other people risk their money on you

I work now from home, spend plenty of time with kids and have a little time left over to answer questions on line. Only problem is my boss is a jerk sometimes...

This was my "big" finance plan after being VP of Financial Planning for a public company and helping other companies raise funds.

I look forward to hearing from other members!