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    9 Replies Latest reply on Feb 7, 2008 6:25 AM by LUCKIEST

    I need Help!

    krystalsconce Newbie
      Ok, my name is Krystal Brening and I have been trying to get a small business loan for about 6 months. I already own an interior design company that has been open for almost a year. I have not made any money which I understand because the first year is usually difficult. But starting in the new year business is already picking up! I want to open a "Paint your own pottery store" and its going to be a store front also for my interior design, I want to support local artist and custom (unique) painted furniture. There is also great coffee involved. I live in the fastest growing county in FL, which has become "New Tampa" I have a great business plan, and have seen a SCORE twice!! I have done all my homework diligently but when I walk into a bank they just laugh at me (at least that is what it feels like). They don't want anything to do with me because 1. I can not prove any income (I am a stay at home mom) 2. debt to ratio ( I have a 670 score and never had a late payment, collection, I own my own home??) How am I supposed to suceed if I cant get anyone to even give me a chance. My husband owns a landscape architect company and he is doing well, but I want to do this on my own, I would like not to drag his company into the equation. I thought of having a partner but I don't know anyone that would do it, and not really sure if I can trust the idea. I need to borrow 35,000.00, does anyone have any incite on my situation????
        • Re: I need Help!
          Lighthouse24 Ranger

          Welcome to the community, Krystal.

          Your comments "I have a great business plan" and "not really sure I can trust the idea" don't go together. If it's a great business plan, you KNOW the business will make a profit. Honestly, your current situation may not allow you to get funding from a "traditional" lender, but a great business plan can help you attract potential investors or partners -- by showing them the profit potential on paper.

          At this point, it sounds like you have a great vision, but perhaps not a great plan that clearly shows how your vision will generate revenue (and how much profit it will make) -- so I'd suggest working on that aspect of the plan.

          If you're confident that you really do have a great plan already, I'm sure several of us in this community would be happy to give it a quick review and comment.

          Either way, I hope someone here can help you move forward. Best wishes.
          1 of 1 people found this helpful
          • Re: I need Help!
            CorpCons08 Ranger
            Krystal,

            I would be happy to speak to you about your situation.
            My firm specializes in commercial financing for entrepreneurs.
            You can contact me at d.skolnick@skolnick-associates.com.

            CC08
            • Re: I need Help!
              DomainDiva Ranger
              Hi Krystal, it seems like you have too much jumbled up in what you want to do. I see an interior design business, pottery painting, I-want-to-be-another-starbucks, art galley, furniture store etc. etc. etc.

              Your credit score is in the 600's because you probably don't have a large amount of available credit to show that say you were only using 5-9 % of your available credit every month.

              If it were me, I would make hubby a partner. My hubby and I are partners on a land development project, complete with contracts, Corporation, Line of credit and all of the other ingredients in the enchilada. You will also have a built in cheerleading section. Also, you ARE doing this yourself. He is funding you like anyone else would...YOU have to do the work...right? YOU have to make it a success.

              You don't have to drag his 'company' into the equation..he can do this as an individual. If he needs to get money from the company the accountant can tell him what to do and how to do it and where it will go on the 1040.

              The good news is that I was actually in a place like this in Berlin, Maryland. It was wonderful. There was a small cafe, that served sandwiches and tea room things and a small stage where the local talent entertained every Saturday night. One of my special purchases was a rolling pin made of walnut inlaid with turquoise. Its just a long piece of woood narrowed at the ends and finished out smoothly and the turquoise filling in any imperfections. Yes it was hugely expensive but you get the drift....it was made by a local artist. My husband uses it to make pastry and says it is the best rolling pin he has ever used. It will be the only kitchen gadget that will be an heirloom.

              The only thing in your plan that seems out of place is the pottery painting...too messy....too distracting. Loose that and you have a sure fire winner. Also look for space in the old downtown area or up and coming urban re-development. If you want I can detail some of the other things that this store carried.
              1 of 1 people found this helpful
              • Re: I need Help!
                LUCKIEST Guide
                K, Do you know about SCORE. SCORE helps people who want to go into business FREE of charge.
                You visit a SCORE office or go online. SCORE is a partner to Bank of America and provides FREE
                business assistance.
                Good luck, LUCKIEST
                • Re: I need Help!
                  krystalsconce Newbie
                  Thank you everyone for the help! Is there any other suggestions?
                    • Re: I need Help!
                      moogrdotcom Wayfarer
                      Perhaps you need to startup a "shell" company and work from there. By that i mean put into your business plan a process to make your vision a reality.

                      1. Incorporate
                      2. Get a Business Phone number
                      3. Get your EIN
                      4. Open Business Bank account
                      5. Get your DUNS number
                      6. Open some basic net30 accounts - uline.com, quill.com, reliable.com, nebs.com, fedex.com, ups.com or whomever you prefer. By some stuff - pay it off in full before the 30 days - buy obvious supplies such as checks, stamps, printers, paper and whatnot.
                      7. Open up a staples business card & office max card - do same as number 5 - buy needed items & pay in full
                      8. While you're drafting up your core business plan you have a "business" in place that now simply needs funding or credit to make a reality.

                      All of that can be done fairly cheaply.. just takes time. If you can commit to the above and get an understanding of how much YOU can invest you will better understand how to sell your idea to others (bankers and loan officers)

                      Using the above "system" you could then quickly apply for Chase, Citi and Bank of America business credit cards and start building up more credit.

                      The obvious advantage to getting business credit is it won't impact your personal DTI (debt to income ratio) so starting small and moving your costs to the business immediately will free up your personal report.

                      Most of this is just the "basics" to get going. I would recommend you open your business checking where you plan on initially borrowing from so you can leverage you assets & existing banking history.
                      • Re: I need Help!
                        LUCKIEST Guide
                        Do you really want other suggestions??
                        LUCKIEST
                      • Re: I need Help!
                        walterdon Newbie
                        do you have a good business plan,and still looking for loan?email me at walterdonn@gmail.com