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12 Replies Last post: Apr 29, 2009 11:27 AM by ilyab0dner

Advice/Reality check

Nov 7, 2008 4:50 PM

Click to view elc1225's profile Start-up elc1225 2 posts since
Nov 7, 2008
I have been in the childcare business for 17 years. I recently came across a childcare facility that closed. I have crunched the numbers and can make it work but I have no capital to get started. It will take about 40 to 50K to stock the building with supplies, fix up the building, purchase a van and open the doors to start filling up the center. What are the possibilities of getting funding for this. I can run the business and make work. I just need to get started. Thanks.
Tags: alternate_financing_options, capital, financing, line_of_credit, loan, money, personal_credit, small_business_loan, start-up Report as inappropriate
Click to view NoBullFunding's profile Mogul NoBullFunding 278 posts since
Oct 6, 2008
1. Re: Advice/Reality check Nov 7, 2008 6:46 PM
in response to: elc1225
Realistically, if you have no cash of your own to put in, a bank loan will be very difficult. Aside from that, if the business was not profitable before, it will be hard to convince a banker that you can do better.
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Click to view Mongoose's profile Mogul Mongoose 270 posts since
Nov 2, 2008
2. Re: Advice/Reality check Nov 7, 2008 10:05 PM
in response to: elc1225
Building on what NoBullFunding had said about loans,
I would not recommend jumping into a business without a small buffer fund of your own, at least 20% of your own cash. Realistically, give it a little time and plan out financing this venture, and coming up with an 'escape plan' just incase things begin to falter. I hate to think negativly, but it would be horrible for you to get into this and then get stuck. Have you calculated all of your overhead and potential hurdles?
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Click to view TryTLC's profile Professional TryTLC 3 posts since
Nov 8, 2008
3. Re: Advice/Reality check Nov 8, 2008 5:58 AM
in response to: elc1225
I would talk to B of A about a small business loan and I would
talk to some parents that have been with your for decades
and ask them to invest into thier childrens future with
a day care center.

Fund raisers and yard sales etc,. ask for help.

Christina
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Click to view elc1225's profile Start-up elc1225 2 posts since
Nov 7, 2008
4. Re: Advice/Reality check Nov 8, 2008 8:34 AM
in response to: TryTLC
All of these responses are very good and just the kind of advice I am looking for. I have prepared my overhead and run the traps. It just a matter of determing how to get started. Thanks again for the advice.
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