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    1 Reply Latest reply on Apr 1, 2010 6:42 PM by TheSoloGuide

    Thinking of building a golf practice facility

    hpgent Newbie
      I am thinking of building a golf practice facility in my hometown and that will be my small business. I have researched and found a company to build it, but any advice on the financing part?
        • Re: Thinking of building a golf practice facility
          Tracker

          hpgent:

          This is similar to advice that I gave on another post, but I see the community hasn't posted it yet.

          Here are some of the basics you will need to help secure a loan from a bank or investor(s):

          A business plan.

          Even though the business is already up and running, the lender may want to see what your plans are for investing in and building the business if you were to buy it. Your business plan will describe (amongst other things) your vision for the business, your knowledge about the market, how you plan on beating the completion, and what experience you have for achieving your goals.

          Clean personal credit with good credit scores.

          They will want to see that you know how to manage your money and repay loans. Each lender may ask for different variables on your report, but you should target having debt of less than 30% of your total available credit and scores of 700+.

          Some liquid finances of your own.

          Lenders will want to see you come in with some money of your own to purchase the business. This amount will vary depending on other factors. They will want to know you have "skin in the game", meaning you are more likely to see the business through troubled times instead of bailing out if it doesn't work. Plus, they want to know that if the business falls short of your profit projections, you have other means for paying your bills.

          Insurance.

          You will need to have you, your personal assets and the business covered by insurance.

          Financials from the current business.

          They will want to see the books from the current owners to see their sales, profits, expenditures and cashflow to see if the numbers are sustainable and work within your business plan.

          The reality is most banks are still very tight on lending. They in essence want to see you are an overwhelmingly sure bet before giving you money. Have you considered the option of bringing in partners that have skills complimentary to yours and funds to help get the business off the ground?

          I hope this helps for a start.

          All the Best,

          Doug Dolan

          The Solopreneur's Guide

          http://thesologuide.com/