ForumsStarting a Business

dj,
I would be interested in helping you obtain financing.
Please email me at d.skolnick@skolnick-associates.com.
CC08

Ineed this capital to advertise my seasonal business, and also to buy more equiptment to compete with nationwide chains in my area, also billboard ads,ect. I am trying to build awareness locally. We have operated on a shoesting since birth. Need to become household name !

I just finished looking at your web site. Which business are you looking to capitalize for growth? DJ services and party/equipment rental require different presentations for loan purposes,

Do you generate financial statements on a monthly basis that clearly separate both revenue streams and the monies withdrawn for personal use? Also, can you list the capital expenses you've made for new equipment and when you subtract them out of your monthly gross sales would your business show a profit before any owner withdrawals?

Clearly separating your two related but different businesses financially and marketing plan wise would be a good first step towards determing the amount and type of financing you need. Once you've done that on paper, you will have a better picture of internal and external loan sources for the operating capital you have noq clearly defined you need. And, the person you discuss a possible loan from will understand what they're investing in and how you'll be able to repay them.

Several thoughts from your response post:

• Both separate businesses are great cross sellers for each other. Think of them as part of a larger umbrella organization which can channel business back and forth. But, analyze them separately in all aspects of running a successful business.

• You mentioned "bread and butter" customers. Which business do they use? What are they worth to you in gross revenue and profit? How did you acquire them and could they be a model for more of the same (if their profitability is good) and could they provide referrals?

• Web sites often reflect either the business owners personality, the web designers style, the expectation of the marketplace they serve (again your DJ business and event business may be two different looks or not) or just some how evolved without solid marketing plan behind them. I noticed a real mix of lots of things with two different styles (white space and equipment pictures & hard bright colors with play dates). I'd start with a solid business and marketing plan mission statement for each business and your overall umbrella organization and designed the web site(s) around that.

More thoughts later... Don Osborne, The Profit Puzzle