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    4 Replies Latest reply on Mar 4, 2011 7:37 AM by jamrock

    Just looking to start already!!!

    Zing1234 Wayfarer

      Hi there Community,

       

      I'm looking to start a turn key operation. I have all the numbers and business plan worked out. I've given most of this info over to a "business planning company" that assists in locating financing for small business start ups, through a network of angel investors and private firms that allegedly loan all sorts of money all the time.

       

      My issue is, that this company wants $500.00 for a power point presentation and a couple other items. (a Profit and Loss sheet, Executive Summary to their liking, Cover letter, etc.) All of the information for these items I have already supplied to their company. It appears they will copy and paste the business plan into a more "compact presentation" to present to their potential investors.

       

      They offer no guarantee of funding or success, but is it a good risk to take?

       

      Would it be better to walk myself into a BofA, or Chase and see what they can assist me with? Or is Angel (and thusly this 3rd party) investing the way to go?

       

      The business is going to be run out of my home, we will be an entertainment provider for Birthday parties, Corporate, Festival, and Charity events.

       

      My personal credit has a stellar payment record, But right now I do have a high amount of debit.

       

      Whatever advice The Community can provide me will be an asset, Thanks.

        • Just looking to start already!!!
          JasonTees.com Scout

          Keep your $500.  Angels have little interest in a startup small business with no operating history.  It's a myth that Angels are looking to invest in small businesses based on an idea alone.  As you mentioned, you are better off doing some legwork yourself and applying at local banks.  There is no amount of "polishing" that a business planning company can do to change your credit profile so dramatically that you'd get turned down on your own, but get approved if they tried.  I'd venture to guess that they type of financing that they'll find is high rate debt that will put you in a hole before you start.

          • Just looking to start already!!!
            Tracker

            Zing1234:

             

            For whatever it’s worth, Jason is right. Take his advice

             

            Doug

            The Solopreneur’s Guide