Hello all...here is my dilemma and I seriously hope this forum can help me find some answers.
I am looking to open a retail business in a smaller Iowa community. A lot of community support for this store has been shown, as there is no retail clothing or gift store within at least a 20 mile radius (and then there is only 1 clothing store that sells name brand apparel, the next closest is 50+miles away). I have expertise, knowledge and education to own and operate the store. I currently have an associates degree in accounting and a bachelors degree in business administration, while currently attending school for my masters degree in public administration. I have worked for many retail stores in both a labor and manager setting and also have worked in accounting for a major toy company (wholesale and retail).
I have 2 buildings in the community that would be great for a retail store. One is cheaper, at an approximate sell price of $25,000, but will require a lot of cleaning and remodeling to be acceptable for my store (this one at 1500 sq ft also has 2 rental apartments upstairs). The other is a little spendier at $50,000, but will only require minor remodeling to be ready for opening (ceiling tiles, a few walls removed and is one level at approximately 2600 sq ft). My family includes many construction workers, all who have volunteered to remodel whatever I choose so the cost associated with remodeling will be material only.
So while I have a business plan, have done research, have locations scouted, have community support, and have the knowledge and drive to run the business....I have no funding source. And as everyone knows an idea is great, but the cash is needed to make it a reality. My question is this...how do I go about securing funding for this venture. From what I understand I do not qualify for an SBA loan because I will be over the amount for the micro-loan ($35,000) and have not been in business so can't secure the 7(a) loan. I don't have great personal credit, so my chances of securing a loan based on my credit is not likely. Is it possible to get a private investor(s) or a private individual(s) to loan the money (without needing to go to the bank)? I am not looking for a grant or hand-out, I want a legitimate loan but I need to know some various options. From my initial projections it looks like $200,000 would be the absolute minimum amount needed to get the building purchased, remodeled, equipment, supplies and inventory purchased, and a few months of working capital.
I know this business will take off and I also know there are many other smaller communities that a business such as this could expand to when the time is right. I am hoping there is a very wonderful source who will help make not only my dream a reality, but also help a smaller community survive and thrive! Thank you in advance to anyone who helps with this!!
Elizabeth
I am looking to open a retail business in a smaller Iowa community. A lot of community support for this store has been shown, as there is no retail clothing or gift store within at least a 20 mile radius (and then there is only 1 clothing store that sells name brand apparel, the next closest is 50+miles away). I have expertise, knowledge and education to own and operate the store. I currently have an associates degree in accounting and a bachelors degree in business administration, while currently attending school for my masters degree in public administration. I have worked for many retail stores in both a labor and manager setting and also have worked in accounting for a major toy company (wholesale and retail).
I have 2 buildings in the community that would be great for a retail store. One is cheaper, at an approximate sell price of $25,000, but will require a lot of cleaning and remodeling to be acceptable for my store (this one at 1500 sq ft also has 2 rental apartments upstairs). The other is a little spendier at $50,000, but will only require minor remodeling to be ready for opening (ceiling tiles, a few walls removed and is one level at approximately 2600 sq ft). My family includes many construction workers, all who have volunteered to remodel whatever I choose so the cost associated with remodeling will be material only.
So while I have a business plan, have done research, have locations scouted, have community support, and have the knowledge and drive to run the business....I have no funding source. And as everyone knows an idea is great, but the cash is needed to make it a reality. My question is this...how do I go about securing funding for this venture. From what I understand I do not qualify for an SBA loan because I will be over the amount for the micro-loan ($35,000) and have not been in business so can't secure the 7(a) loan. I don't have great personal credit, so my chances of securing a loan based on my credit is not likely. Is it possible to get a private investor(s) or a private individual(s) to loan the money (without needing to go to the bank)? I am not looking for a grant or hand-out, I want a legitimate loan but I need to know some various options. From my initial projections it looks like $200,000 would be the absolute minimum amount needed to get the building purchased, remodeled, equipment, supplies and inventory purchased, and a few months of working capital.
I know this business will take off and I also know there are many other smaller communities that a business such as this could expand to when the time is right. I am hoping there is a very wonderful source who will help make not only my dream a reality, but also help a smaller community survive and thrive! Thank you in advance to anyone who helps with this!!
Elizabeth
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