Post a new topic
    2 Replies Latest reply on May 12, 2008 8:06 AM by LUCKIEST

    New business ducks in a row. Where to start?

    Digi_Jams Newbie
      I'm in the process of starting a small business in Birmingham, AL. I'm pretty far along in creating my business plan but I've hit a snag. The issue I'm facing currently is that my entire business model will have to change or evolve based on what type of retail space I'm able to secure. I hope that makes sense. With more floor space I'll be able to tool my business towards a larger target audiance while conversely if Im put into a smaller space I'm unable to generate as much income as I would be with a bigger space. The upside is that I will have less debt but potentially less income and overall growth potential.

      It seems as though in order for me to advance my plan I'll have to go ahead and secure a physical location. This makes it very difficult for me as i'm still in the process of rounding up the last of the funding. I'm currently sitting on $75k and need a total of $175k (for the big location with best potential, $125k for the small property).

      It seems to me I'll need to apply for a loan BEFORE securing my property. How difficult is it to obtain a large-limit business credit card? I'd like to hold my current cash to put down towards rent for an entire year upfront. I'd then need a good bit of purchasing power to complete the rest of my start-up.

      Any advice? Anyone ever dealt with BoA's business lending? Am I asking for too much?

      Thanks,
      Matt M.
        • Re: New business ducks in a row. Where to start?
          LUCKIEST Guide
          Where to start. First welcome to this web site.

          Where to start?? Start by telling us more. What is your background??
          And what kind of tool business are you talking about?? (Retail?? Manufacturing??)
          That is one of the reasons for creating a business plan to make sure that snags get worked out
          before you find yourself over your head. Do you have a Business Name??
          If you can start with the smaller property and get the business up and running and
          showing a profit, then maybe down the road, it would pay to expand.
          Do you know about SCORE??

          Good luck, LUCKIEST
            • Re: New business ducks in a row. Where to start?
              Digi_Jams Newbie
              My background is in retail management and technical installations. This is very similar to the business I'd be opening up. I have a business plan and I've had to revise it numerous times because everything in my plan hinges on what size space I end up getting. Starting with a smaller property limits the amount of product I can have in my business and will ultimately turn away 40% of my customer base (rough estimate). My wife is of the same idea that starting small and expanding years later is best. I, however, feel that starting small cuts my income down to just barely being able to get by. That means no hiring employees, no expansion, no savings, etc.

              I have a business name already...it's the one I'm using.

              I've heard about score and in my area it's gotten HORRIBLE reviews. The SBC it's based out of has a horrible reputation in my area. Numerous small business members in my area have warned me about dealings with them. I'm working with my local Chamber of Commerce at the present. They are somewhat helpful.

              Thanks for the prompt reply.