Hi Everyone, I am a self employed stylist and I am currently a booth renter. I want to open a salon by summer and I don't know where to begin to look for start up money. I have searched for grants and only seem to find spam. I am a divorced mother of 2 and I purchased a home recently, so it doesnt have much equity. Due to my divorce, I had to file bankruptcy a little over a year ago. I need 15-20k to start. i would appreciate any help in the "grant search" or anyone who knows of an investment company that would be willing to loan me the money. Any ideas would be appreciated! ~Cristy
#1. "RE: START UP MONEY FOR A SALON" In response to Reply # 0
As a business and grant attorney of 15 years, it is quite difficult to find grants for what you are searching for as to your salon. However, you may find a small opportunity with a local non-profit as to business startup opportunities. More than likely, you will need to obtain a loan and/or apply for a SBA Community Express Loan given your circumstances. For more information as to grants, check out www.innoventum.com/bizgrant.html
#2. "RE: START UP MONEY FOR A SALON" In response to Reply # 0
You are going to have to get a little creative in order to get this done. Think of joint venturing or partnering with an underperforming salon in the area . Build business credit without using your personal credit by joining www.thebestincredit.com. Get as many startup services as possible on a barter basis to avoid or minimize cash outlay. Alot of businesses fail to start or succeed due to a lack of resourcefullness not resources.
Good luck with your endeavor and feel free to contact us if you need any assistance
#3. "RE: START UP MONEY FOR A SALON" In response to Reply # 0
Grants are hard to get. My hair stylist doesn't have her own salon but the way she makes more money is she advertises in papers and everywhere she can. I would invest some money in advertising such as flyers, drop cards, business cards and advertising in papers like the thrifty nickle etc. That would be alot cheaper then trying to get 15k. Build up your client base as much as possible from this. You income will definitely go up and then you wouldn't have the headaches of owning your own salon and still reap the benefits of more income. Just my opinion.
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#4. "RE: START UP MONEY FOR A SALON" In response to Reply # 0
The current administration's "recovery" act includes funds for the SBA and here is what their site says:
The bill provides $730 million to SBA and makes changes to the agency?s lending and investment programs so that they can reach more small businesses that need help. The funding includes:
* $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA's guarantee percentage on some loans to 90 percent. The elimination of fees, announced on March 16, will remain in effect until the end of the calendar year or until the funding is exhausted. The elimination of fees is retroactive to the day the Recovery Act was signed into law. * $255 million for a new loan program to help small businesses meet existing debt payments * $30 million for expanding SBA?s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders * $20 million for technology systems to streamline SBA?s lending and oversight processes * $15 million for expanding SBA?s Surety Bond Guarantee program * $25 million for staffing up to meet demands for new programs * $10 million for the Office of Inspector General
If you call the SBA (local, regional, national) offices, you will be hard pressed to find anyone who can provide concrete information beyond , they are working out the details now.
#6. "RE: START UP MONEY FOR A SALON" In response to Reply # 0
Aurora is correct that the government is infusing existing government programs (such as the SBA programs) with more dollars. However, the fact that there is going to more dollars available does not mean it is going to be any easier to obtain such a loan.
You must still meet the stringent criteria required to apply for and obtain an SBA backed loan. You must QUALIFY.
Cristy, unfortunately your recent bankruptcy will likely keep you out of the running.
Keep in mind folks, to apply for an SBA loan (including micro loans), you need industry experience, collateral, EXCELLENT credit and your own cash (20 - 30% of your capital needs). Sounds simple, but if even one of those requirements can't be met, you cannot even apply.
It's a harsh reality, but I just hate to see people wasting time and effort and spinning their wheels.
First write your business plan, then you will know exactly how much money you need and you will know if you even have a viable idea. Remember, no matter what direction you take you will need to have that business plan in hand. (See below for help with writing your own business plan. It's easier than you might think!)
It can be done. You can realize your dream, but you might need to change gears to get there.