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    7 Replies Latest reply on Dec 31, 2007 12:47 PM by Profit.Puzzle

    Need operating capital !

    djmandan2001 Newbie

      My wife and I own a sole-proprietership event rental and Disc jockey service company. ( See my profile ) We have credit score around 600. (still trying to pay off debts from previous marraige ) We own a manufactured home, and cannot find financing for growing our business. We have shown very little profit as every dime not needed for living expenses has gone back into the business. We have purchased all our equiptment, vehicles needed to deliver ect. from proceeds of the business. I owe $ 58,000.00 on the house and it had a fha appraisal in July of 07 '. My question is, where do I go to get financing to grow my business faster.
        • Re: Need operating capital !
          CorpCons08 Ranger
          dj,
          I would be interested in helping you obtain financing.
          Please email me at d.skolnick@skolnick-associates.com.
          CC08
          • Re: Need operating capital !
            DomainDiva Ranger
            How much of this operating capital will you be using for marketing and advertising? Businesses do not grow without it.
              • Re: Need operating capital !
                djmandan2001 Newbie
                Ineed this capital to advertise my seasonal business, and also to buy more equiptment to compete with nationwide chains in my area, also billboard ads,ect. I am trying to build awareness locally. We have operated on a shoesting since birth. Need to become household name !
                  • Re: Need operating capital !
                    DomainDiva Ranger
                    Have you tried undercutting the competition by just a little on such things as childrens birthday parties and political events? Contact the Republican and Democrat precint chairmen in your area and work your way up the ladder. Also you can join the Chamber of Commerce...offer great service at a lower cost and see what happens.
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                • Re: Need operating capital !
                  Profit.Puzzle Newbie

                  I just finished looking at your web site. Which business are you looking to capitalize for growth? DJ services and party/equipment rental require different presentations for loan purposes,

                  Do you generate financial statements on a monthly basis that clearly separate both revenue streams and the monies withdrawn for personal use? Also, can you list the capital expenses you've made for new equipment and when you subtract them out of your monthly gross sales would your business show a profit before any owner withdrawals?

                  Clearly separating your two related but different businesses financially and marketing plan wise would be a good first step towards determing the amount and type of financing you need. Once you've done that on paper, you will have a better picture of internal and external loan sources for the operating capital you have noq clearly defined you need. And, the person you discuss a possible loan from will understand what they're investing in and how you'll be able to repay them.

                    • Re: Need operating capital !
                      djmandan2001 Newbie
                      We do keep records monthly, however i have not seperated the two businesses as I have been running them together. We can start out with a customers back yard and transform it into a elegant wedding. We deliver, set-up as to planning that took palce with customer, with Canopies, tables and chairs, lighting, and we d.j. the event also. That is why I think of it as one business. I will work on the seperation to determine how to promote them seperately. My yellow pages ads and all online advertising are geared to complete package deals. I do have accounts that are bread and butter for off season. You have looked at my website do you think it needs to be changed ? What aspects do you think are negative and in need of change ?
                        • Re: Need operating capital !
                          Profit.Puzzle Newbie

                          Several thoughts from your response post:

                          • Both separate businesses are great cross sellers for each other. Think of them as part of a larger umbrella organization which can channel business back and forth. But, analyze them separately in all aspects of running a successful business.

                          • You mentioned "bread and butter" customers. Which business do they use? What are they worth to you in gross revenue and profit? How did you acquire them and could they be a model for more of the same (if their profitability is good) and could they provide referrals?

                          • Web sites often reflect either the business owners personality, the web designers style, the expectation of the marketplace they serve (again your DJ business and event business may be two different looks or not) or just some how evolved without solid marketing plan behind them. I noticed a real mix of lots of things with two different styles (white space and equipment pictures & hard bright colors with play dates). I'd start with a solid business and marketing plan mission statement for each business and your overall umbrella organization and designed the web site(s) around that.

                          More thoughts later... Don Osborne, The Profit Puzzle