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    17 Replies Latest reply on Nov 3, 2008 8:39 PM by NoBullFunding

    Am i ever gonna get funded

    myboys Wayfarer
      I am looking to start a specialty retail store. I am so nervouse to walk my business plan to the bank, i feel that with everything that is going on they are very conservative. My husband and i had excellent credit BUT he was laid off for 10mo and now i have a few lates and overextended. We are now getting back on track and i want to go after what i have always wanted. With all this said will i find funding or am i totally kidding myself
        • Re: Am i ever gonna get funded
          CapSolutions Newbie
          I work at a company that has a capital development division, and we help find funding for start-ups. I've seen how the process plays out, and quite often I do see people "kidding themselves" unfortunately.

          I don't know your entire situation, so I can't tell you how viable I think your project is, but I will help you answer the question yourself.

          1) Do you have strong credit?
          2) Will you be bringing at least 20%-30% of your own money to the table to invest?
          3) Do you have a decent amount of collateral?
          4) Do you have a strong background in whatever endeavor you are pursuing?
          5) Do you or your husband have any past bankruptcies?
          6) Does your business plan properly express your vision, along with a clear plan to pay back the loan?

          If you feel pretty good about the above then you are heading in the right direction. We are living in very uncertain times, and banks are taking every precaution they can.

          Regardless, I wish you the best of luck. If you feel very passionate about your idea, and truly believe it will work, then don't stop until you see it through!
          • Re: Am i ever gonna get funded
            unikapparel Newbie
            I understand how you feel. I gotten about a dozen no by now from small and big banks. I have been able to move on and stay in business by funding things myself and the money that I make putting it in savings and then using half to buy more inventory. It's a hard time to get funding when you are start-up like us. I just keep trying and hoping that at some point the right people will say yes. Please don't give up and don't get discourage if you don't get funding right away. Do go and present your business plan amd give it your all. At some point someone is bound to say yes. Hope this helps a little! Good luck!!

            -Rose
            1 of 1 people found this helpful
            • Re: Am i ever gonna get funded
              intechspecial Ranger
              Where there is a will there is a way!

              If you can commit to success, and can prove that you have the abilities and/or the drive to learn, as well as the passion and obsession it takes to succeed in business, you will succeed.

              The question you asked is "am I ever gonna get funded".

              You should be saying "I will get funded as I refuse to give up".

              Let me quote a well known and famous business person: "You keep on paddling, eventually you will flow downstream".

               

              intechspecial(Mike)
              • Re: Am i ever gonna get funded
                intechspecial Ranger
                Another way you should look at this is like this:

                Walk into a bank and say: "Will you please fund me I really need your help", and the bank will find you desperate and potentially a dangerous investment risk.

                 

                Walk into a bank and say: "Here is why you want to fund me, and this is how I will succeed", and they will take you more seriously.

                 

                If they decline you, find out specifically why, fix the problem and walk into another bank and say "Here is why you want to fund me, and this is how I will succeed".

                Confidence will always trump desperation.

                 

                Mike(intechspecial)
                  • Re: Am i ever gonna get funded
                    DomainDiva Ranger
                    InTech, you make an excellent point here!!!

                    When I first started looking for serious funding I 'ASSUMED' that everyone would automatically 'get it'. If they 'got it' they sure did not 'act like they got it'.

                    My mouth got me funded since I could not shut up and talked to everyone, finally a friend stepped up and asked if I could use X amount of money. Stupid me I nearly turned it down until my tech guys said NO!!! take whatver you can get..lets get started. We did and the rest is soon to be history.

                    In addition to no one getting it. I was just bad. Terrible. I was scared and it showed. No one wants to fund a scardy cat. I was always upbeat and confident when I talked to my friend and could always answer whatever quesion(s) he asked me. I had been to Garage.Com bootcamp for startups and had bought the Alex Ramsey stuff, I was still bad.

                    My confidence as a leader has been learned on the run, as the team came together and I realized that I was responsible for not only the domain, but the people..the team. While we have existed on our programming funds, I have had to cash in retirement accounts as well. It's all a part of the job....the person with the idea is the responsible one...that means for computers, software, travel, meeting expenses, you name it. I have been fortunate to be able to get the zero percent financing for all of our computers and software and fortunate that I HAD retirement accounts to cash in. That does not mean it has been easy...everyone is sacrificing to make the launch. Team members collectively have more stock than I do. My key people have credit cards so that they are able to purchase what they need. No one has abused them.

                    The bottom line is that wailing about "Am I ever gonna get funded", is not going to make funds appear. Entrepreneurs have to start walking and talking. You better be ready to know exactly what you are going to do with the money once you get it. Decisions my friend are for people that don't know what to do. Before the start of any new direction, I always have Plan A, B, C & D as well as the back up 20 and punt plan. That way, depending on what life dishes out...I have the answer.
                      • Re: Am i ever gonna get funded
                        CapitalCoach Wayfarer
                        DomainDiva,

                        I applaud your spirit and willingness to commit your retirement funds to the project. I hope it works out for you.

                        I'd like to expand on your initial point I 'ASSUMED' that everyone would automatically 'get it'. Although you didn't say it, I've encountered many an entrepreneur (especially in Silicon Valley) that then beleives the problem is that they need to find investors that do "get it" - rather than refine their message.
                          • Re: Am i ever gonna get funded
                            DomainDiva Ranger
                            CaptialCoach, I so agree. However I was just bad. just plain bad. My presentation(s) were awful, I was awful...it was horrible. Really. Trust the Diva on this one.

                            I was so bad that if someone did get it (which one did and is still trying to steal the idea based on what not how), then they tried to take advantage of me by having me sign a bad contract. Others told me I needed to get rid of the technical team, financial and legal advisors I was using and use their people instead. I found VC's that did get it...but I was so bad that when they tried to take advantage of me, I would always refuse. But of course they had to try becasue I was SO BAD and the assumption on their part was that I was stupid and would do anything for money.

                            The VC/funding world is a brutal one...we are fortunate to be where we are now with the team and the product. Our Board calls the shots...not an investor. We are open all of the time to outside investors, so far we have not found one that is willing to be a part of a team. We have our angel and that is what we have. We are going to market.

                            So there VC people. :)
                              • Re: Am i ever gonna get funded
                                NoBullFunding Scout

                                While a good impression is important, I never approved a loan based on a good presentation alone. A lenders decisions comes down to the facts: good credit, cash into the deal, and cash flow generated by the deal will make or break your loan request. Startup are always lacking at least the cash flow part, which is why the other 2 are so important. If your credit stinks and you have no money to put into the deal, you really are better off waiting until you can rectify those issues.
                                • Re: Am i ever gonna get funded
                                  CapitalCoach Wayfarer

                                  diva,

                                  Don't be so hard on yourself.

                                   


                                  Acquiring capital for your business can be "brutal" - especially if you are not fully prepared.

                                  It can be especially tough if one is "going it alone". Helps to have a good team and some solid advisors.

                                  Be grateful for what you've learned and proud of what you've accomplished.
                          • Re: Am i ever gonna get funded
                            CapitalCoach Wayfarer

                            myboys,

                             

                            While I agree with most of the other responses, let me suggest that (if you haven't already) you get some external input on your business plan. Once you are comfortable and confident with it - then you "prepare" your short presentation for the lender.

                             


                            These two steps should help you be less nervous.

                             


                            How much capital are you seeking?

                             


                            CapitalCoach@aol.com
                            • Re: Am i ever gonna get funded
                              intechspecial Ranger
                              CapitalCocah -

                              What is the name of your company, and what is the name of your company's website?

                              Thanks
                              • Re: Am i ever gonna get funded
                                bernzpeed Newbie
                                Dear Myboys,

                                I have walked on those shoes before and I am sure I could say the same for many of us here. Times have really been tough and it has been a struggle. Luckily, prices of fuel have gone down dramatically and it helps saving that amount of money. Every penny we could save up adds up to survive. Last year, I had written a business plan for a residential senior care home. I did not know where to get the funding due to extremely bad credit history (I had 480 credit score) as I was really struggling to get by with the amount I was making.

                                Luckily, things change as I came upon Suze Orman's tv show and read her book. So I am able to manage my finances better, have investments and more importantly, getting my credit rating back in track. These past 2 years have been prosperous for me. I've paid out 3 credit cards. Also, I found a business partner who put faith into the project since the financial returns were attractive and at the same time we are helping our senior community. So far the business is in the licensing stage and we are almost there.

                                As any start up businesses, there will be challenges before opening and one of them was operating capital. So I turned to a peer to peer lending and though I did not get funding here due to my challenged credit history then, I would still recommend this to anyone as I have used this as additional income for me by lending money and at the same time helping others who were in a similar situation as me. Join a community and present your business plan. People will compete for you business just like ebay. You will be surprise with the results. This website has been recommended by the Money Magazine. You can also get a copy of this as they provide great money advices and rate great home-based businesses. I found one that I absolutely love and totally believe in and surprisingly it has been really good to my wallet.

                                Email me at bernz@bayabo.com for more information. I would be more than glad to help you in any way I can. I am so happy that I was given a 2nd chance at success and I just want to pay it forward.