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Any luck with this?
I am looking to open a Bagel Shop, but not sure I want to take on debt. I am paying off personal debt and don't want to go right back into having a loan.
I would check with your local bank. Also there are allot of goverment fundings out there that bonds and such can help you. Also when you get your business started dont forget a website as well. http://www.pandorasdesigns.com/ I would start with small business goverment funding Google search.
You need to do your research because there are many options available to you to day. It is difficult due to the sad economic times we are in but it is possible to make your dream a reality.
Did you check out business cash advance, unsecured business loans, private investors, family and friends to help? You need to try everybody you can for assistance.
Don't give up!
Hope this helps.
Unless you are going to get a loan from family and friends who are simply willing to help out, you will need to put together a formal business plan.
If you are unsure of how to put a plan together, I have a free page on my site to help out. Here is the link:
Not all lenders may require that you show them all sections of the plan - some may only request to look at the Executive Summary and Financials - however, it will still be helpful to your business if you complete all sections. This will give you a better focus for you business and an understanding of your market.
I recommend that you (and bmullen) seek out a member in this community that goes by the screen name "phanio". He provides excellent insight into various lenders, how to break down your financial requirements to seek funds from multiple lenders and info on what they require.
Unless you may miss a specific window of opportunity, I recommend that you complete paying off your personal debt first. As a small business consultant advising people on their start-ups and having owned and operated a couple of my own businesses, I know the financial "surprises" that pop up. You have a better chances for survival (both financially and emotionally) if you don't have the burden of paying off personal debt while potentially struggling to launch a business at the same time.
I hope his helps.
The Solopreneur's Guide
Unfortunately start-up small business loans are very very rare at this time. Here is what I would try:
1. If you are looking for a very small loan you might type in "Very small business loan in (your state)" into the search engine of your computer. Sometimes there are some regional programs that have some grant money they can give out in small amounts. You might be required to participate in business classes learning how to prepare a business plan (or similar) to participate in these programs but it would be worth it. Also I've seen a company callled No PG Business Funding that advertises no collateral or personal guarantee pop up in this kind of search. I have no experience with them and know nothing of their requirements but a quick search might be worthwhile.
2. More pressure is being put on banks to put out more money to small businesses, and while almost all will go to established companies, you might have some luck with one of the SBA Micro loan or ARC loan programs. You would need good personal credit and some collateral. I would contact SCORE and request counselling (ask for help in securing financing) and they will assign a Counselor to help you who may be familiar with local banks and other sources of financing. SCORE can also help you with business planning and THERE IS NO CHARGE FOR THEIR SERVICES.
3. Have you considered a partner? While I don't usually recommend Partnerships, one thing a partner can bring to a business is money to match your experience. If you go this route choose carefully and get SCORE to help you draft a Partnership Agreement (& maybe run the agreement past a business attorney).
4. Last choice - Your own money or loans from family or friends. If you have equity in a home you could use an Equity loan (advantage low interest rate). Or, if you have a life ins. policy you might be able to borrow against it (very low interest rates). Another way to use your own money is a credit card (many small businesses do start this way - I don't really recommend it, but if you have to, make sure your card carries a low interest rate). If you consider asking family or friends to help out, a good Business Plan will help you present your case. SCORE can also help you prepare a good plan.
In this economy, most small businesses do have to use choice 4 to get started. Hope this gives you some ideas. Good luck.
There are many options for you - but they may not be what you first think about when seeking a loan. most new business onwers think that their only option is their bank - but, banks usually don't fund start-ups - you have to work your way into a bank loan. But, that does not mean there are not other options - you just have to get creative. This could mean finding non-traditional lenders or loan products (there are many) or combining loan facilities together (based on need or use) to get the funding you need. One mistake many new business owners make is trying to get one, all-inclusive loan - which rearly works for new businesses. To point you in the right direction, however, would need more information like the amount you are seeking and the use of these funds.
Business Money Today
Don't do it. Not yet. Are you certain that your bake goods are unlike any other (established) bakery in your area? Do you specialize in 2 things that you can't get in your area at other places? Think vintage if you haven't. Everyone wants to go back to simpler/Mayberry times. My place is as Mayberry as you can get, and we'd love to find a baker we could count on, as well as buy from.
Vintage is the new and improved. That's my motto. You can use it, because it sells.
Just remember it HAS got to taste Homemade. Grocery store bakeries are too convenient and inexpensive for hard working people not to pass up. BUT, if your product _keeps _and tastes the goodness of Aunt Bee's or Grandma's, well, this is what I would do until I saved enough of my OWN money to invest.
I'd find boutiques, vintage shops, small women's and men's clothing shops, bead stores Scrapbooking venues...you get my point, anywhere where single men and women or busy moms go. Or, just any small (privately) owned business, where owners who have the ability to place my baked goods at the front door or register with their coffee and tea's. Anymore, they better have those amenities to offer their customers. For Free.
Bake your bum off and get your product out there first. Or bake and package (cute or unusual packaging,) some up and take them to community colleges or Universities where the professors can place them in their lounges but make sure you have your biz cards or your packaging includes a contact number. They're always having some event or potluck thing going on.
Just get your stuff out there and see what your consumer thinks of your product first.
Forget Gov't. Grants. Jeezalou....just forget the government. There's a hitch no matter what.
And, if you're here in Phoenix...contact me please!
Starting a New Business.
I just sent over a link with Free information on starting a new business from selecting the name to filing state paperwork to setting up your business bank account. The site is: http://www.bdcandassociates.org/NewBusinessStartup.htm There is also a site that helps small business with a sorta of Emergency Business Loan, but it is a membership. That site is: