Post a new topic
    9 Replies Latest reply on Sep 23, 2009 12:44 PM by TheSoloGuide

    I have completed my business plan....

    rahinson Wayfarer
      I have completed my business plan.....now Im ready to take it to the bank....until I talked to a score counselor and found out that Im not as ready as I thought I was.... She explained to me that lenders are requiring a fico score of 760....which mine is just slightly lower...said that most lenders are requiring at least 1/2 of the startup funding...which I planned on using the equity of my house for collateral which is about 35% of the startup costs....Ive been working on this business plan for well over a year now....This really stinks and bursts my bubble...any different advice?
        • Re: I have completed my business plan....
          cssi.us Wayfarer
          You have a couple of possibilities:

          1) Get the extra money from friend or family.

          2) Get some of the 'extra' money from future customers. If you have a business that will have customers and you can raise even a little from them, this ought to impress bankers (if you future customers believe your plan and put up money this is a great sign). Might help put them over the edge.

          3) Put it on a credit card! Not a great idea and I really suggest avoiding this!

          4) Find a partner for the business. An operating partner or a silent partner. Maybe an angel investor of some type in your community (just google angel investor to learn more). This will be challenging and take a lot of time to find someone, but if you really believe in your idea it could be the route to take. There is a ton to learn and do in starting a business and sometimes a partner can help in other ares besides just money. Still it's not a step to take lightly.

          In addition to score, I would go talk to some bankers as well. If you can get some feedback from them, you might find out more about what is needed.
          Plus you start to build up a relationship. If you come back several times with updates to the plan and with more money in hand -- eventually they will see that you are serious and committed. That will help them sell it to others in the bank (many business loans are either formally or informally reviewed by multiple people at the bank).

          Lastly, have you looked at the SBA site? Few startups can get an SBA loan, but the information on the site is useful. Lots of pages, but read all you can and you will learn even more.
          http://www.sba.gov/services/financialassistance/index.html
          • Re: I have completed my business plan....
            Tracker

            Rahinson:

             


            Sorry to hear about your long road to what seems like a dead end at this point in time. However, there are always options - it may take some research and creative thinking to come up with alternative solutions.

             


            How much money are you seeking for start-up funds?

             


            I recommend that you seek out the advice from a member here that goes by the nickname "phanio". Here's a link to his site:

             


            http://www.businessmoneytoday.com/

             


            I have participated with him on other forums as well as here and found that he has provided solid advice on a consistent basis regarding options for securing funds (and what you need to do so).

             


            Is there an opportunity for you to take on partners that can contribute to start up funds and have business experience that may compliment your own expertise?

             


            Did the SCORE counselor identify any opportunities in your plan that you could alter to reduce your start up costs? Some partners may be willing to come on board for sweat equity covering responsibilities that you are planning to outsource.

             


            Do you have the opportunity to launch your business on a smaller scale requiring less in start up funds and grow your business to your current plan as your business generates money?

             


            Without knowing more about your target market, your business idea and the amount of funds that you are seeking, it makes it somewhat difficult to give appropriate advice.

             


            Hope this helps.

             


            Doug Dolan

             

            The Solopreneur's Guide

             

            http://thesologuide.com/
            • Re: I have completed my business plan....
              Hymesdesign Adventurer
              The above posts are very informative and helpful, but they didn't mention one option you have right now. If, and this is only if, you are already able to produce a product of some kind you should look into going ahead with a store front online, it's much cheaper to do than you might think especially if you look around a little first. The site will help you gauge how good an idea you have in the first place and if the idea has any merit and you have any work ethic whatso ever you should be turning a profit in a few months. Look into free store fronts like ecrater.com and other solutions to lower your inital costs and you'll be able to save even more up front. Like I said this only applies if you can already produce a product and were eventually going to sell it online anyway. This isn't the best option you have but for instant gratification types it is the quickest to turn a profit, provided you know anything about marketing yourself and your product/service...but the above ideas are less risky in the long run. I do know however that doing what I suggested ended up saving me several thousand on an idea that would never have worked that I was sure was gold...a little of my embarassing past for you to chew on.
              • Re: I have completed my business plan....
                LUCKIEST Guide
                Completed my business plan

                Who are you?? Can I read your plan??
                <!--Session data-->
                • Re: I have completed my business plan....
                  LUCKIEST Guide
                  Completed my business plan

                  Who are you?? Can I read your plan??
                  <!--Session data-->
                  • Re: I have completed my business plan....
                    MoveForward Scout

                    There are other options, see:
                    http://www.usagovernmentgrants.org/womens_grants.html

                    You can have the best fico score in the world but the
                    business plan will not work for the bank and you are denied.
                    You can have this fico score, the bank reads your business
                    plan and notices you have the niche that will make it and
                    they will then find a way to back you (knowing you will be
                    bringing funds into their bank).

                    This is not a bubble bursting moment, you simply walked into
                    a wall, now you must go over it by jumping the hurtles that stand
                    in your way. Refocus by asking to speak to a bank officer as
                    him or her to review your plan and convience them to mentor
                    you through options for a loan (let them know how important
                    they are to your future plans).

                    Look into SBA (Small Business Administration) website for
                    additional loan options.
                      • Re: I have completed my business plan....
                        rahinson Wayfarer
                        I appreciate the advice given.... Even though I wasnt ready to present the business plan to the bank.... I went in just to get some straight forward answers from them...and got a great reception, and alot of questions answered. I was told by several people not to approach the bank until the plan was ready to be presented....There again...dont always believe what you hear...They were very receptive, liked the idea, and are ready to help me every step of the way to get this to the bank board and present it....The actual vice president of the bank was in the room helping with questions and give me his personel cell phone number and told me to call him directly with any questions....I feel like its a whole new ball game again!!! Thanks for the advice and pick me upppers....
                      • Re: I have completed my business plan....
                        Tracker

                        Rahinson:

                         


                        Congratulations! That's great news - a nice shot of adrenaline to get your momentum going again.

                         


                        It's a great idea to approach a bank or other lender and find out ahead of time what they require for review when determining if they will provide funding. However, I would recommend that before you put a business plan in front of them, you make sure that it is solid.

                         


                        This will do a couple of things for you:

                         

                        • It will give you a higher chance for securing funds the first time
                        • It will reduce the risk of turning off a potential investor that might not give you a second chance
                        • It will give you better odds for success in launching your business

                         

                        Good luck. Sounds like you have a flexible bank that is willing to work with you to get your business off the ground.

                         


                        All the Best,

                         


                        Doug Dolan

                         

                        The Solopreneur's Guide

                         

                        http://thesologuide.com