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10 Replies Last post: Aug 8, 2009 8:12 AM by Hymesdesign

Startup Money

Jan 24, 2008 7:14 PM

Click to view new2buz's profile Start-up new2buz 6 posts since
Jan 23, 2008

We are considering taking out a personal loan to finance the startup of our new business. Please share any advantages or disadvantages to this thought.

Can we pay off the initial personal loan later with a business loan?

We are very new to business and any imput will be appreciated.
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Click to view CEO Space's profile Mogul CEO Space 271 posts since
Jan 13, 2008
1. Re: Startup Money Jan 24, 2008 7:53 PM
in response to: new2buz
New2buz,

Wecome to the forum.

Well, although I don't recommend it now because at CEO Space we teach the methods of raising capital
and joint venturing, I have to say, in the early days, I used whatever personal funds and credit I had to
launch my businesses.

Would I do that now? No. Because as I said, I know better now.

Also, I knew that I was going to make a go of it no matter what. I know, a lot of people say that.

But this is after I was prepared. I went to the SBA and did their questionaire to see if I was really cut out
to be an entrepreneur. Even though I knew I was, who knows, maybe I wasn't.

And also, I want to make this aside note, I was just talking to another serial entrepreneur friend of mine today and I said, I have never seen any business survive and support someone when they keep a job.
And neither had she.

Now, don't go off a do anything crazy based on what I've said. I don't even know you. lol

But that is my input.

Good Luck.

Kathy
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Click to view new2buz's profile Start-up new2buz 6 posts since
Jan 23, 2008
2. Re: Startup Money Jan 24, 2008 8:10 PM
in response to: CEO Space
Thanks CEO Space,Katy

My husband is retiring from the military and want to start his own business. We were not sure of the legal problems we could incur if we paid the personal loan off with the income from the business. I've read enormous time to keep your personal and business money separate, but was not sure if in the beginning with no other options what would be the worst that can happen.

Anyone else as some personal experiences to share....

We have taking the first step today and obtain an EIN. Next hurdle registering as an LLC and financing.
Janice

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Click to view CEO Space's profile Mogul CEO Space 271 posts since
Jan 13, 2008
3. Re: Startup Money Jan 24, 2008 8:21 PM
in response to: new2buz
New,

Don't get me wrong. You need to keep your personal and business funds separate. You should have separate bank accounts and lend the business the money and account for it.

You can borrow the money and then loan it to the business. Then the business pays you
back and you pay the loan back.

Do you have an idea of what you want to do? A business plan? A team?

Kathy
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Click to view Green Biz's profile Start-up Green Biz 5 posts since
Jan 24, 2008
4. Re: Startup Money Jan 24, 2008 8:58 PM
in response to: new2buz
I have recently made some mistakes with my start up. I would be leary of any high interest loans. I would write a business plan and present to some banks big and small, global and local. I was given some advice that I have not followed yet. I have been told that you can present your plan to MIT in Boston. Present it to them and they will rip it apart. Take notes and go and work out the kinks, then bring it back to them until they do not have issues with it. I do not know if they still do this but the idea being that you need to write a business plan and present it to those more experienced than yourself and see what kind of critisisim you can drum up then rewrite until you succeed. Just dont borrow any high interest money.
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Click to view new2buz's profile Start-up new2buz 6 posts since
Jan 23, 2008
5. Re: Startup Money Jan 24, 2008 9:01 PM
in response to: CEO Space

CEO


We are in the entertainment business for families and coporations. We are working on the business plan to guide us through this process.


Thank you for the great idea.

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Click to view CEO Space's profile Mogul CEO Space 271 posts since
Jan 13, 2008
6. Re: Startup Money Jan 24, 2008 9:04 PM
in response to: new2buz
New,

You can also go to the SBA and get help from SCORE. We even have a SCORE counselor in this forum, Luckiest.

He can tell you more about that. You can also go to your local SBA office.

Good Luck.

Kathy
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