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    1 Reply Latest reply on Sep 15, 2009 10:30 AM by phanio

    need help with my small business

    focus202 Newbie
      Hello, I recently started my own retail business, mainly it focuses on car audio. I have the business license, dba name, ecommerce website,but no storefront. My problem is that I have no money to start it to its full potential. I mainly chose this field because me and my business partner are always ask about what we have inside our cars and people are always trying to buy our sound systems, so we decided to run a business selling car audio. We would like a store front but can't afford one, and would like to know where to begin. Our credit isn't perfect so we dont think we will have a chance at a loan. We have accounts set up with 6 vendors that accepted our applications so that we can buy product from them to get our business furnished. But we can't afford to by in bulk, only one item at a time and that will take forever, we will never get off the ground like that. We need help, any suggestions. How to get money, get a storefront, how to manage succesfully being in this type of industry, anything will help. Thankyou
        • Re: need help with my small business
          phanio Pioneer
          Some options. First, have you decided on a location? Given the large supply in unrented or unleased office space, you may have the power to negotiate a great deal with a landlord. If you can identify a peoprty that you would like to lease - approach the landlord with a deal that is in your benefit. Think about asking the landlord to set the rent based on your sales (for at least the first year). This way you will not be saddled with a large rent payment and no incomming cash flow. This will help you get established and allow the landlord something until your business takes off.

          Or, run this business out of your house or place of residence. This will allow you to get out there and get paying customers without the large expense of rent and utilities (and other overheads). You can do this for a few months until your business starts to grow.

          Regarding funding for your operations - you have to think about ways to bootstrap (nearly all businesses bootstrap in the beginning). This could mean using personal credit cards, savings, home equity loans, title loans or tapping friends and family. Even if your friends and family don't have money to invest - they may know of people in their network that do. In this case, set your repayment of the investment to trigger when you hit a certain level of income - thus, you don't have a set payment from the very beginning. You could also get out into your community and ask other business professional to back you while you grow - it never hurts to ask for investment - you never know who you will run into.

          Lastly, work with your 6 suppliers. Explain your situation and see if they will provide you some trade credit. This way you can order in bulk but not have to pay for those items until you make sales on your side.

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