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    4 Replies Latest reply on Nov 17, 2008 4:54 PM by CFO4Hire

    Funding Start-Up Cost

    care_smit79 Newbie
      I recently graduated from college and is looking to start my own retail business. Some of my friends told me that in order for me to start my own business requres me to have money to put into it. I would like to know how can I start my business with no money down and where can I find the funds to cover my start-up cost?
        • Re: Funding Start-Up Cost
          Navigator
          You need an angel investor. Right now is a hard time to start a business unless you have prior success. Not trying to rain on your parade.
          Imagine if someone with no experience running a business wanted funds and didn't want to put their money in.
          Fortunately, there are ways you can bootstrap for very little-- just a few thousand, depending on what you sell.
          There are folks who might lend, but with no collateral, they will basically own you and charge a high rate.
          Use a credit to finance-- we used AMEX to build us up years ago.
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          • Re: Funding Start-Up Cost
            LUCKIEST Guide
            Funding Start-Up Cost, Welcome

            Who are you?? Where are you?? What kind of business??
            How soon do you plan on starting your own retail store??

            Do you have a Business and Marketing Plan??
            How much funds do you need and for how long??

            Do you know about SCORE??
            Good luck, LUCKIEST
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              • Re: Funding Start-Up Cost
                care_smit79 Newbie
                My name is Cassandra and I am in Mississippi right now. I am planning on moving to Chicago by the middle of next year. I would like to open a retail business selling a range of clothes for infants, women and men, as well as accessories and electronics. I would like to start working on it by next year or the year after. I do not have a business plan written out but is in the process of researching the industry and other retail stores. How much funds do I need? I would estimate a range on $75,000 or more to cover the start up cost and reconstruction.
              • Re: Funding Start-Up Cost
                CFO4Hire Newbie
                It is very challenging to raise money in today's environment, especially if you have limited business experience. If you are unable to raise funds from family/friends or an angel investor, I would suggest that you talk to the your local economic development director. They may be able to provide some assistance, but they usually are not too willingly to fund soft costs (ie. organizational costs) or working capital requirements. They are more interested in funding tangible costs like construction/leasehold improvements for your retail store. They will ask for your business plan and marketing plan. In addition to yourself, its important that your business plan shows employees being added to your business. They will like to see the owner paid as an employee. In considering funding, economic development agencies like to calculate the amount of payroll taxes and other local taxes that the business will be paying to justify their funding to you.

                Good luck!
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