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    4 Replies Latest reply on Aug 30, 2009 9:39 AM by phanio

    Single mother needs financing for small business startup

    princesskawan Newbie

      I am in the business planning process currently but am a little afraid of the financing. I will need around $200thousand. That includes the building, 6 months of expenses, inventory, equipment, pretty much everything. Only problem is that I am a single mother with no assets and a credit score of around 629. I feel like a loan would not be possible and have tried searching for grants for low income areas and things of that nature. Any advice? There are no SCORE or SBA offices anywhere closer than about 4 hours away.
        • Re: Single mother needs financing for small business startup
          rencmbs.vate1 Wayfarer
          what kind of busines do you want to open ?
          • Re: Single mother needs financing for small business startup
            MoveForward Scout

            I see from your profile you are going to be selling candy, cookies
            and desserts. Your killing my diet, just spelling these words

            Have you tested the market with your products yet?

            • Go to members and find LUCKIEST he is a SCORE representative
            and he can assist you in your business plans.

            • You are very low on your money estimate. Have you taken in
            consideration Commerical Insurance and Liablity, Electric, Water,
            Business Licenses, Commerical Phone Line, Website,
            Marketing (advertising, phone book listing, etc.), Signage, Employee,

            • My suggestion: Instead of jumping into the Brick and Mortor
            technique and risk of lost income (the first three years of profit
            will go back into the brick and mortor overhead) how about
            networking. You have the perfect business to assist others who have
            the overhead!

            Visit non-francise restaurants, small airports, gas stations, pizza places,
            etc.bring samples and show them how your product can be added to
            there place of business. Make your business "Bakery on Wheels",
            delivering every week fresh products!
            Move your business into another business (such as Taco Bell
            and Pizza Huts partnership under one roof). Approach a business that
            compliments there business without harming it. Example: Florist, Bookstore,
            or other. Existing business's would love to have another business to team
            with who will provide additional foot traffic and provide additional help
            with the rent. Even look at franchises like Zaxby's, Outter's Chicken, etc.
            who do not have desserts on their menu's (I have food on the brain).
            Contact the franchise headquarter ask for the marketing director.

            Before contacting anyone, know your plan. For you samples complements
            your business plan (and if you get someone on a diet we will buy it ASAP!).

            In today's economy....think smart and out-of-the box without spending
            more than is nessassary.

            Best Wishes


            • Re: Single mother needs financing for small business startup
              phanio Pioneer
              Your probability of getting a grant for a "for-profit" business is unlikely. Most public grants are allocated to the state or local government who then puts out those funds to needed local projects - you might want to speak with your local or county governmenmt to see what programs these have. You could start by visiting your chamber of commerce.

              Your best bet would be to find a way to run your business on a more just in time framework. Instead of buying a building - lots of costs here - not just in financing the building but in its maintenance and upkeep - so, think about leasing. This is a great time to lease a building as there is a lot of unoccupied space and the owners of those spaces will usually make great deals just to have some funds coming in. You could think about basing the lease payment on a percentage of your sales - thus no fixed payment or up front fees.

              For the remained - seek out a small loan for each need - if you are seeking inventory - work with the suppliers - see if they will extend you credit (that you don't pay them until you sell the goods and collect from your customers). For equipment, seek an equipment lender - these non-bank lenders work with start-ups and understand your needs. For expenses try an unsecured lender or micro-loan. The idea is trying to get a $200K single loan is nearly impossible given your current background. But, if you can reduce that amount and break it down into manageable requests - you have a much better chance.

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