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    2 Replies Latest reply on Jun 16, 2008 3:30 PM by LUCKIEST

    HELP! Start up business financing needed

    MIstartup Newbie
      I am in the process of trying to start a business in the Rockford, MI area. I plan to open a general bookstore and cafe in the quaint shopping district in downtown Rockford, MI. My initial marketing and research has shown great excitment and promise in my community. My problem is obtaining financing! I am 28 years old and they (the banks) are saying that I lack the assets to secure a loan. What do I do now? Have I exhausted my options? How do young adults start business?
      Thank you!
        • Re: HELP! Start up business financing needed
          Tracker
          When you are starting out and credit and collateral don't exist for you to use to fund a business; the only avenue you have is to raise capital from private investors. Often these are called "Angel" investors. Angel Investors can and do put money into small businesses. Many companies may have had some level of success in bringing on such a "founding investor" (even if it is friends and family that have put money into the business) to help them launch their business.

          The proper way to do this is to have an investor-ready business plan that you can present them that covers all the details of the start-up and gives them 3 years of financial projects so that they get a picture of the expected profitability (and viability) of the business. Once you get some initial interest from investors; ideally you should use your business plan to then prepare what is called a Private Placement Memorandum. That is the document that conforms to all the disclosures required by the SEC when it comes to selling stock in your company.

          So, "first things first"; sit down and put together your business plan or get help to do so. Make sure that it is solid professional plan. Then go to those in your commuity that expressed excitement and see the promise of your business and ask them to take a look at your plan; and if they know of anyone that is interested to become an investor and own part of the business. That might be a path to help you find your first investors for the seed capital to launch your business.

          Another alternative would be to find an existing cafe that has room for expansion and pitch them your idea of co-locating your book store there. There may be a way to make that work to your mutual benefit.

          I hope the above helps or gives you some ideas to explore. Good luck to you with your business start up.

          Dennis Lowery
          Adducent, Inc.
          • Re: HELP! Start up business financing needed
            LUCKIEST Guide
            Start up business financing needed, Welcome and good luck

            The post from Dennis Lowery, "Adducent", covers a lot of ground and good infomation.

            I also like to write about developing a Business Plan.

            My other suggestion is contacting SCORE. SCORE is FREE and can help you.
            You can contact SCORE in Person or on line.

            Do Not Give Up, LUCKIEST