Help!

After 13 years in the industry, I'm finally starting the upscale retail florist shop I've always wanted. I have a BS in Business Administration, have completed my Business Plan, have a lease that'll be ready to sign at the end of this week for a retail suite right next door to a brand-new Starbucks (great foot traffic!), and a venture capitalist interested in providing financing for fixed assets...but I need WORKING CAPITAL to get the doors open!

I need $150K for the first year's expenses, but don't have 25% of that as owner's equity, like a 7(a)SBA loan requires. I left regular employment 2 weeks ago to pursue this business full-time, so I've lost my verifiable income (thus, can't get a secured loan on my husband's salary alone). I'm the most well-off person in my family, so no investor/lending opportunities there.

Anyone have ideas on finding $$$ to get a good business up and running?!?!

THANKS!!

Hi. I quit my job in January 2006 to obtain financing for an
upscale lingerie and sleepwear boutique. Everything is ready,
there is not a lingerie store in the area. I have secured a
lease, I have great lines coming in, EVERYTHING is ready to
go...Here it is August and I'm still not financed!!! I'm in
jeopardy of loosing my lease, my lines are ready to ship &
i have no money! I'm in Mississippi, you would think that with
all the money received from the Katrina Relief projects, that
financing would be easy. NOT at all.
 
I am hanging in there, I hope you do the same. I know your
frustrations and have shed many tears with many more to come.
Your idea sounds great and I hope you get financed soon. When
you do get financed, would you please pass along your
knowledge so that I too can get financed? 

Hi my name is Veronique and I too need financing. How's all going with you now? I hope everything is going well with you. I would love to hear what's going on with you now.
My business partner and I are on the verge of opening a bridal boutique in a suburb of Dallas but we're looking for financing.... We have our vendors in place, ready to purchase our bridal gowns, shoes and Jewelry. We were hoping to open in Jan but that may be put on hold. We were told to start small and bootstrap and we're trying to do that. I will say we're planning to rent a space in the mall in a kiosk and sell our bridal attire. We're going to use our laptops to show gowns that we offer and we'll bring some different dresses and other items with us.... I too understand frustration...
Vee

So we have two businesses here with leases and no money to open up shop? How did that happen?

I wish I could offer you more help and hope. What I will do is post a warning to others.........DO NOT SIGN A LEASE WITHOUT HAVING YOUR FINANCING IN PLACE!

A lease is a binding contract (I'm sure everyone knows that). If you default on the lease the landlord can sue you. And trust me, they need only miss one month's rent (even partial rent) and their attorney(s) will be all over you. I don't understand how anyone could sign off on leases without your financing in place. Didn't they require security deposits? Didn't they require personal financial statements showing your net worth, liquid assets, loan info, etc?

Additionally, I always advise new business owners to keep their "day" jobs while their new businesses are getting off the ground. Hire someone else or have your spouse handle the business (when possible) while you work your regular job until the business can sustain both business and personal expenses. If these are not viable options, then you MUST have enough cash on hand to get your through the first 6 months to one year.

Do not let your excitement cloud your judgement and end up placing your dream in jeopardy.

It will be extremely difficult to get funded now that you have left your employment or if you don't have strong enough collateral. Again, I wish I could offer more help. Good luck to you, I hope this works itself out.

Thanks for your suggestions, Sylvia.

Let me clarify on the lease -
I have a lease "proposal", meaning I haven't signed the official lease agreement yet, and will definately NOT do so until the financing is in place.

Keeping my "day job" wasn't an option - I was working as a contract employee, and the project I was on was terminated without notice. So, due to circumstances beyond my control, my day job was over earlier than I'd planned it to be.

I have new hope now, though. After researching at the SBA website, I came across a company who helps entrepreneurs put together the most comprehensive SBA loan proposal package possible. I purchased their program, and so far I am impressed with the wealth of helpful forms, outlines, suggestions and instructions. I thought my business plan was complete...far from it!

I'm now working diligently to complete an SBA loan package for submittal to a preferred SBA lender. This has been a godsend, since I'd already asked 3 banks for help with an SBA loan, and no one ever returned my calls or even told me what I needed to do for an SBA loan. Now I have everything at my fingertips! I'll keep you all posted as to my progress, and if the program really works. If interested, check it out at www.easystepkits.com/sba

Megan, I'm glad to hear you're still working on your financing and found an option that is working for you.

Also (for others in similar situations)remember to utilize your local SBDC's (Small Business Development Center). They offer FREE help with locating SBA lenders in your area. SBDC's are usually housed in local community colleges. It really isn't necessary to spend money on software or forms. My business plans (which I wrote myself)have been approved by SBA reps and I never used templates or software. See below for more info.
http://www.smallbusinessstartup.biz/plan/

Do keep us posted Megan and good luck!

UPDATE: I found financing!!

Using the product I mentioned previously to put together a very comprehensive and professional SBA loan application, Business Plan, and Market analysis, I have been able to get a SBA financing for my business! I definately recommend www.easysetkits.com/sba for anyone looking to put together a slam-dunk package for financing - it isn't a quick process by any means, but I was approved by the first bank I approached with my package!

I've had to change my strategy a bit, though. The bank was very enthusiastic and anxious to process my loan request, but needed to see that I would invest actual cash into the business equal to at least 20% of my startup costs. To satisfy that requirement, I removed all of my large equipment purchases (flower cooler, delivery vehicle, computer hard/software) from my startup cost analysis, deciding to lease them instead. This lowered the overall startup requirement as well as the amount the bank expected me to contribute. Then, to get the cash for that contribution, I've put my husband's truck up for sale - with his blessing, of course! It still hasn't sold, so I'm looking for creative ways to make that happen before my loan is ready to close since the bank needs proof that I have the cash.


So...I always say "nothing's done until it's done", but thought I'd give you all an update on my progress!

A few Possiblities,

What do you need the money for?

You could get capital leasing?
Various Suppliers

Negotiate possible tentant extensions and terms?

Negotiate supplier arragements with creditors?
Export Development

Angel Financing with Higher Rates of Return?
for items you need that will produce a profit in a few month
if you can guarantee this.



www.businessgrowth.ca
contactus@businessgrowth.ca

If you could put if off for a few months maybe you can do an at home business long enough to gain enough capital. Depending on the business you start will depend on how long it takes and also the desire. I know first hand cause we had so many medical bills and my hubby couldn't work so the pressure was on. I had to find something that would work that I could do quickly. Thank God I found it and now my whold family (kids too) does it. I hope you can find something (even if it temporary to get you to the "something" you really enjoy)
:7

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I know of a business owner who started their florist at home. Four years later, she just opened her own shop.

Just a thought.

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