Hi ya'll, My husband and I have decided to break off on our own and open our own business. We currently run a business for 2 absentee owners in the custom cabinetry and millwork industry. The owners are not willing to put any more money into this company nor do they have anything to do with the operation of it. So it makes perfect sense for us to set off in this venture and profit from our experience. My husband has 20+ years experience in this field and 4 years management experience in this job plus another two years management in a previous job. I have been keeping the books and handling all financials for the past 2 years, have taken online classes via IRS website and have very good knowledge of our legal responsibilities. Here's the problem. We are in need of funding for start-up, building lease, equipment, materials, advertising and operating capital to carry us for 2-3 months while we are becoming established. We are looking for 100K. Our credit is poor due to having to file a personal chapter 13 as a result of a medical crisis. We have only 18 months left until we have paid off the chapter 13. We sold our house in order to keep a forclosure off of us and save our VA loan to be used again. Our credit before that was very good and since the bankruptcy we have established very good "unconventional credit" thru our rent, and two car loans. We have no doubt that we can make this business very profitable due to our experience and the demand for commercial and high end custom millworks. Most of the competition deals in lower end residential. Those that do cater to high end residential, do not deal with commercial. We are in the Atlanta area now but plan to settle our company in the Henry county area. We specialize in Night Clubs and Restaurants. This is our dream and our chance to build something up for our retirement and our children. Is this hopeless or are there any options for us? Any help will be greatly appreciated. Blessings to all, Dawn
#1. "RE: Are there any funding options for me?" In response to Reply # 0
The very first thing you need to do is write the business plan. You need to have this worked out on paper before any bank or other lending institution is going to even talk to you.
Make an appointment iwth the local Small Business Development Center asap.
Tarnished credit isn't the only factor that is looked at. You have to be able to show in your Income/Expense Projections and Cash Flow Projections that you would be able to pay the loan and all other expenses and have positive cash flow.
Of course, the above isn't everything! You ahve to show a marketplace need and want for your services.
Your extensive experience in the field is also looked upon favorably. In your plan, discuss this extensively.
#2. "RE: Are there any funding options for me?" In response to Reply # 1
>The very first thing you need to do is write the business >plan. You need to have this worked out on paper before any >bank or other lending institution is going to even talk to >you. > >Make an appointment iwth the local Small Business Development >Center asap. > >Tarnished credit isn't the only factor that is looked at. You >have to be able to show in your Income/Expense Projections and >Cash Flow Projections that you would be able to pay the loan >and all other expenses and have positive cash flow. > >Of course, the above isn't everything! You ahve to show a >marketplace need and want for your services. > >Your extensive experience in the field is also looked upon >favorably. In your plan, discuss this extensively. > >Good Luck! > >
Very good advice to foolow!
And the one thing that should be emphasized is the fact that when you are seeking funding it is the funder that you have to convince
A question that I would like to ask though is why you want to start on such a large scale basis. Have you considered starting small or is starting with an outside business is the way you want to start?
Are they financing options? Sure there are but you have to remember that whether it be grants or loans or even both you have to show them why they should help fund you.
#4. "RE: Are there any funding options for me?" In response to Reply # 3
Kudos to you for still having the entrepeneurial spirit!!! One thing you might look into is the National Microenterprise Initiative, as they may help in obtaining smaller up to $10K loans/grants. Also, since your millwork will need to be installed, check with your local or state contractor's licensing board as well as any contractor's licensing schools, as they often times have many connections that aren't readily advertised. If you are looking for ways to possibly generate capital on your own, Bedzzz Inn raised about $92,000.00 in 90 days. You might want to check out their program. You can go to www.bedzzzin.com/raisecapital-tc.html. I am using it to raise the needed funds to start up my own custom guitar shop. I hope to be up and in full operation by year's end.
#5. "RE: Are there any funding options for me?" In response to Reply # 0
It is good that you have made considerable progress in your bid buid up your business plan. If your cash flow viability is well written out and your proposed investment is indeed prone to a good cash flow, I can assist you work out a loan at a very low rate in the company i work with. If you are interested, kindly get back to me : email@example.com. Marvin Jeff.
It is great to have support out there especially from people that have been thru the building of a business themselves. So far everything is going great. We opened for business March 6 and have been swamped in work since then. One of our loyal customers from the company we resigned from has indeed come thru with more work than we expected. We already have the money to purchase the building to put on our property with enough left over to seriously market our company and give us some working capital for a couple of months. It is amazing how much we have been able to do with virtually no overhead. We know that we will soon outgrow the ability to produce at home but we are planning to stick with this plan for as long as possible. We have made a financial plan that will allow us to purchase a commercial site and put a building on it in 12-18 months. Best case senario we can do this in cash! And to anyone out there that feels like your venture may be hopeless financially, DON'T GIVE UP!!! There are always things you can do to cut corners and start out small. Once we sat down and figured out the best and lowest cost ways of doing this and still meet our customer's very high demands, everything just fell in place. We are operating legally in every way; business license, accountant, EIN, sales tax, etc. We incorporated as an LLC which protects our personal assets. It can be done, sometimes it just takes baby steps to get there. Keep us in your thoughts and prayers and we will do the same for ya'll. We have never been so exited and I'll tell you the truth, it is alot more secure to depend on yourself for your livelyhood than on someone else. By the way, it isn't finished yet, but we are working on our website and hope to have it up and running soon...check us out at www.ddcustomwoodworking.com!