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Forum nameFinancial Feast
Topic subjectRE: I need financing!!
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=105&topic_id=20&mesg_id=27
27, RE: I need financing!!
Posted by bizdev, Sat Aug-19-06 11:09 AM
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.