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    16 Replies Latest reply on Feb 15, 2010 12:03 AM by autoclass2

    Auto Classified Website (Need a business loan).

    automoxie Wayfarer

      What a great forum this is. I've only been a member for a few hours and I'm extremely impressed with the helpfulness and professionalism that this community provides. I don't want to blow to much smoke, but I've been to many forums and none of them match your dedication or wealth of information. Thank you.

      Now I didn't just come to this site to compliment everyone, I need some help as well. I've been an auto dealer for the last 6 years, I sell exclusively on the internet using all the different classified websites. Now my partners and I are ready to start are own auto classified website with many improvements such as equal opportunity listings (nobody can pay to be at the top of the list), more photo's, larger photo's, bulk upload, video hosting, local ad campaign, very cost effective, etc...

      We have a business plan, and we have a marketing plan. We've talked to numerous dealers in our area and they've all expressed interest. We want to start local and spread to a national company with in 5-7 years. There are three partners with credit scores of 630, 660, and 710. We have no equity and need a loan for approximatly $300,000 - $400,000. Any and all suggestions will be appreciated.
        • Re: Auto Classified Website (Need a business loan).
          LUCKIEST Guide
          Auto, It sounds like you have all your auto's lines up. Have you gone to a bank YET??
          With both a business plan, and a marketing plan, it should be easy.
          It might help to have letters of intent from the numerous dealers in your area who have
          expressed an interest. Good luck, LUCKIEST
          • Re: Auto Classified Website (Need a business loan).
            WEBillions Adventurer
            A great amount of money these days comes from angel investors. Do you know anyone that might want to help out?

            If not, here is some loan info.

            You likely won't be able to get an SBA loan for some time. Your business will need to be stable and profitable to qualify for an
            SBA loan. You'd also have to put up basically everything you own as
            collateral.

            You should also consider an
            asset-based lender. The interest rate will be a little higher because
            they are more likely to loan to what they consider higher risk
            customers.
              • Re: Auto Classified Website (Need a business loan).
                automoxie Wayfarer
                I appreciate all your responses and will send off a couple emails today.

                WEBillions, how does an Asset-based loan work?
                  • Re: Auto Classified Website (Need a business loan).
                    wahoo85 Newbie
                    An asset-based loan is exactly what it sounds like--a loan (usually short-term) that is backed by a company's assets (e.g. real estate, equipment, accounts receiveable, trademark, etc.). See more @ http://en.wikipedia.org/wiki/Asset-based_loan and http://en.wikipedia.org/wiki/Asset-based_lending.

                    I work in the internet industry and, given the current funding environment, I doubt you'll be able to find angel/venture debt or equity funding without management that has experience running an online business. Also, most of the features you listed are available in a wide variety of self-titled "Web 2.0" classified sites (e.g. video listings).

                    If you are really an experienced auto seller, I have a business plan I can dust off related to online auto classifieds. It's not a classified site but it's a niche that is not currently being served and your experience with dealers is the part of the equation I do not have myself. If you'd like to talk more, send me your contact information.
                      • Re: Auto Classified Website (Need a business loan).
                        autoclass2 Newbie
                        Hi, I dont know if you still have this email address but I figured I'd
                        give it a shot. I'm just inquiring about the business plan you referred
                        to in your response on this post. I have an auto classified site in the
                        making up in Canada and it would really help me out to get the basics
                        on paper to start my business plan. I wont use yours verbatim by any
                        means, Im just a new business man that is completely swamped beyond
                        words and this would be an unbelievable break. I can buy it from you if
                        you wish, whatever it takes. Only reason for needing it so badly and
                        prompt is that I have an appointment on Weds with the bank and I have
                        tons of ideas and services to provide but no blueprint or outline, or
                        time for that matter, it would be such a help if I could just fill in
                        the blanks and then adjust it accordingly as I go.

                        Thank you for your time and if you could let me know soon it would be a great help and tremendously appreciated.

                        Take care and I hope to hear from you soon.

                        Steve
                  • Re: Auto Classified Website (Need a business loan).
                    MDF2008 Wayfarer
                    Hello,

                    I feel your pain;growing pains.

                    I have a couple pre-qualifying questions:

                    1. What is your budget for the completed website? Does that include SEO?
                    2. Are you outsourcing the website build? Datacenter? (DR)
                    3. Are you developing your own in-house software platform build?
                    4. What has been your gross sales for the last three year? (estimate)
                    5. Has your business plan been reviewed by anyone who understands your business model?
                    6. What is your strength and weakness as a company and partners?
                    7. What is your projected gross sales for 2008? 2009? 2010

                    I will have a couple solid suggestions once I get your reply.

                    All the Best. MDF2008

                     

                     


                    • Re: Auto Classified Website (Need a business loan).
                      blueboxer1 Newbie
                      Where did you determine $300K to $400k will be needed for startup?

                      I hope that number you came up with is for advertising. You can have this site built for less than $100k. Easily! There are already scripts (pre built templates) that can be easily modified to your specifications. Search google for this term, you'll see: "car listing website script".

                      Once you find your script you can outsource the work (sorry to those who are offended) to other countries to modifiy the website.

                      You can post your project on scriptlance.com, elance.com, odesk.com, freelancerchina.com.

                      Your website will be entering a extremely competitive market. Cars.com, Autotrader.com, AutoBytel.com are just some of the big ones. And depending on your location, there are probably so local targeted websites as well.

                      Have someone in the internet marketing business review your plan to see if its feasible. You can do more research at:
                      forums.digitalpoint.com
                      www.sitepoint.com/forums

                      Please let me know if you need help with any aspects of your research, and I can usually point you in the right direction to find information.
                      • Re: Auto Classified Website (Need a business loan).
                        TGA000 Wayfarer
                        You sir are in the right place. In fact, I'm exactly the guy you want to talk to.

                        My background: http://www.IanAuto.com

                        I'm the first guy in the world to launch an auto repair quotes site! We grow by over 125 - 250 people per day.

                        So if you want something on line in the Auto Repair market... give a shout.

                        Here, call me.

                        Office: 630-566-9189
                        jonnyandrews30@gmail.com

                        Also, why would you want to wait 5-7 years? Depending on how you set this up, you could spend 1/10th of the money and explode in record time!

                        In fact, I was recently hired by a shop from NY to create something very similar to what you're talking about. We're in development now.

                        Jonny Andrews
                        • Re: Auto Classified Website (Need a business loan).
                          Capital2008 Newbie

                          Hello,

                          I am an expert in creating Business Plan that will help you get a loan. I am also an investor in the Northern Va area. So let me know what you need. I have experience in Proposal management, brochure, newsletter. Basically my company is a marketing service provider. Please let me know how I can assist you in obtaining your loan. you can visit our site at www.capitalprestigegroup.com
                          • Re: Auto Classified Website (Need a business loan).
                            nMoncrief Adventurer
                            Automoxie,

                            I wish I had the cash to loan you! You've probably already got someone in mind for your website development, but if not, chech out www.kelseyads.com. On of their employees is a friend of mine, and they've done good work for me in the past. They design and manage the content for thousands of McDonalds websites, so I'm sure they can handle the dynamic content of your online car lot.

                            When you and your partners get ready to launch your website, please give me a call. I'd like to give you a quote for providing your Internet payment gateway and the merchant account for your credit card transactions. You can learn more about me at www.CreekFinancial.com. Although the website is set up to automatically generate anonymous rate quotes, I'd like to give you a custom quote since you'll be dealing with large dollar amounts. Best of luck to you in your new adventure!

                            Neil Moncrief
                            Creek Financial Services