2.
Re: Start up & Financing Jun 25, 2008 8:11 AM
Without credit or collateral to get debt based funding, the only avenue you may have is to try to raise capital by selling equity. Do you have an investor-ready business plan with 3 years financial projections that can be presented to equity investor prospects to gage their interest? If your plan is solid and the business a viable opportunity you you may be able to find a local "Angel" investor who would provide some funding for you.
If you need a large amount of funding you should look at using your plan for the basis to have your attorney prepare a Private Placement Memorandum. Also known as a PPM this is the document that covers all the legal aspects of raising capital from from private investors by selling them stock (and sometimes bonds, which are often convertible to equity). if you are interested in raising capital that way then check with your attorney about a Reg D PPM filing; the costs etc.
Another thing you might want to consider is to buy a liquor store rather than start one. Funding and financing is usually much easier to get on existing businesses than start-ups. And you might be able to find structure a deal where you have minimal out of pocket expense to you to buy the business.
I hope that gives you some directions to explore. Best of luck to you.
Dennis Lowery
Adducent, Inc.
