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    5 Replies Latest reply on Sep 25, 2008 12:34 AM by Lighthouse24

    Where to begin???

    shyviolet Newbie

      I desperately want to start my own salon, it is an all men's concept salon, I have found the perfect location with high traffic, on foot, driving and public transport, the area is the perfect demographic both working and living as it is 53% male populated with the age range sought, and is in a perfect location with high visibility.

      I have no idea where to start, how to find funding, grants, angels or otherwise, and have roughly found that I will need $200,000 to get started and be fully operational with all I have researched.

      How do you begin when you have no assets? I would be leasing the space, the lease price and terms are both negotiable, and I am hoping for TI money.

      Can someone point me in the right direction for grants or other feasible methods of funding? I greatly appreciate it!

        • Re: Where to begin???
          bpmsolutions Newbie
          Check out SCORE...they are retired executives who help companies.
          There are also resources for women-owned businesses. Look at your state's website for small businesses.
          Banks may be willing to loan you money if you can show a solid business plan and have at least some equity to put into the business. Don't forget to check if friends and family can help. Even if they can't provide money, they may be willing to help with supplies or equipment.
          Sounds like you've done some good research.
          • Re: Where to begin???
            Iwrite Pioneer
            Shyviolet,

            Before you start applying for funding, you are going to need a business plan. Either SCORE or the Small Business Administration can help you with that and then with how to go about getting funding. The business plan will help you with most of the questions you are going to be facing.

            You can try to go it without having a business plan but it will make things a lot more difficult. Good luck!!!!

            My two cents worth.
              • Re: Where to begin???
                shyviolet Newbie
                Thank you both, I have been to the SCORE sight and am going to try to get to the local SCORE chapter in my area. I am struggling with the business plan as I am unsure how to do the projected financials for a start up business. I have been in the industry for over 11 years and would be a working owner, do I model my projected financials on what I am currently experiencing at my current employment as it is the same industry, or do I do a tiered analysis of what I expect to see regarding current market trends? Thank you so much for your help and advice, I very much appreciate it!
                  • Re: Where to begin???
                    Iwrite Pioneer
                    I am not going to try to answer that for you, it is beyond my area of expertise. Hopefully, someone else here or a SCORE counselor can answer that for you. I wanted you to know that I wasn't ignoring you, I'm not the right person to answer that question.

                    Good luck.
                    • Re: Where to begin???
                      Lighthouse24 Ranger

                      My suggestion (re: the question in your latest post) would be to build your expense projections around the most realistic view of the future you have (i.e., based on trends and such), but to build your revenue projections around the more conservative of the two approaches. You want to have an accurate operations plan (so if, for example, the facility would require a major electrical upgrade to accommodate a projected growth in the business, then your plan needs to reflect that expenditure). Yet since you intend to seek outside funding, you'll want your revenue and cash flow projections to be based on as little speculation as possible. I think you'd want prospective lenders to be able to independently come up with same numbers you do -- or better. If you're pitching to investors, other factors come into play (but that's another kind of deal altogether anyway). I wish you the best.

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