Hi ladies, I'm interested in opening my own business and I know exactly what type/kind of business to open. However, I don't have the funds to start or open anything at the moment. It is a dream, of all of the sudden, and i am not going to let it go because I know it is a fantastic idea. Here is my question. For those of you who have a personal small business, did you apply for a business loan and if so what do you need to get approved, besides the good credit. I hope my age doesn't interfere, it shouldn't right? I'm 27, I don't even know why I'm thinking my age can be a problem...just a thought. Who do i talk to about this to help me prepare and such before i apply for a loan. Any advise? of any kind, gladly appreciate it. thank you much
I have a small business and I didn't take any loans. I did already have my equipment to get started, but anything extra I needed, I purchased as needed, slowly.
Advice? Put all your ducks in a row, so to speak. Make sure your credit is good. Apply for a small business loan (pre-approved) then potentially seek investors.
Should someone adviSe you...take note that they might want to take advantage...perhaps taking adviCe from an attorney could set you off in the right direction.
I hope you do WELL in your adventure........God Bless....
Contact a SCORE counselor in your area (link provided). You will get expert advice for FREE. Also, you will need a solid business plan. SCORE can actually help you with this (for free!). You can also check out the SBA (small business administration) for loan information. But, you should really exhaust all of your personal resources (friends,family etc..) before borrowing from an institution, as it is really quite difficult these days, and expensive (not to deter you). Age has nothing to do with it, although experience in the field that you are pursuing does matter to a bank. Whether it's actual work experience or education. Check out the links I gave you, and Good Luck!!
http://www.score.org/index.html
http://www.sba.gov/category/navigation-structure/starting...
Your age should not be an issue so don't worry about that.
You need a solid business plan, good tax accountant and good legal counsel.
We fund our business 100% from personal funding and no loans. If you go to a bank to get a loan, they will want to see your plan, forecast for revenue, etc. In essence, you would meet with bank officers on a regular basis and THEY tell you what you need to do.
We did not like that idea because we run our business the way WE want to and answer to no one.
It is a job, 24/7 in our case most of the time and that's good because it means we are busy! In the beginning I was new to Quickbooks and I have a tutor come in occasionally at $85/hour to help me make sure I have done things correctly per IRS codes.
I don't know how large your business is but cash flow is critical. We are in the raw materials industry and there is always a chance someone will reject a load of material for some reason or another.. IF that happens to us, we'd lose $50,000 instantly. That would hurt us but not end our business. Also we deal a lot with trucking companies and you have to be insured properly so that materials get where they are going correctly. SO planning and making sure all bases are covered is critical.
Good luck!
Depending upon the business you are in, vendors may have 'start up' plans. For example, I needed pharmacy inventory and several drug vendors at the time would provide 6 months of inventory, no interest for 6 months. Since we used the inventory by then, repayment was no problem. There are likely classes by the Small Business Administration or BBB in your area that will also help you.
First and foremost do not worry about your age, women are a protected class under the ECOA equal credit opportunity act. If you can not afford a business attorney, seek help at your local library, books like opening a business for dummies, any books related to opening a business, you will need a CPA (someone) that can guide you on Tax issues and what nots..
First and foremost you will need to get all the proper lic for your state. You name for you company and were you want your tax bills sent (usually your home at the start). If capital is a problem right now, is this something you can do out of your home for now until you can raise enough capital, can you start small and build up to it? Signature small business loans are easy if your fico scores are good, But they are small, if you need a larger one, what type of collateral do you have, any 401K ect. Be prepared to show the bank you intentions on paper, the capital needed, what is it to be used for and how you plan to make a profit. Sometimes it is best to just obtain a credit card for small business, I am sure you have seen the ads of A.E cards. But knowledge is the best way to help your self and the future of your company. Research and research... Good Luck... I am working on starting me a homebase, internet business.
You can open an internet franchise (kind of like amazon.com) for under $1000.
What makes you want to own your own business? Is it working for youself? Your own hours? Just curious.
It depends on your business. Don't take a loan out until you get everything in order and you can show the bank your plan. Also, as a serial entrepreneur, I recommend bootstrapping as much as possible - which means designing your own website, barter services and so forth.
