Hi, I really want to start my auction business but here is the problem. due to past financial mistakes that are totally my fault. my credit is shot. I have no family to go to, and the banks and online institutions just laugh at me. I really have a profitable idea. i wont get into details here, its all on my website. i have exhausted all options. i have worked the same job for six years, and my checks are being garnished badly, so I dont know what to do. people go through hundreds of thousands of dollars like its nothing. all i need is about five to get started. I can even get started on less than that. any ideas would be very much appreciated...thank you. steve.
#1. "RE: Please help...Financially out of ideas" In response to Reply # 0
It sounds like you thought this out. Here are the pertinent questions that any investor or lender will ask: 1. Do you have a business plan? If answer is no, then create one. It is necessary to show that the idea is financially viable. 2. Are you a LLC, S Corp., or a single proprietorship? Answer should be anything but proprietorship. The other entities provide legal protection of your personal property. 3. How much money are you or have you put into the business? They need to know that you are willing to put your personal assets on the line for this venture If you don?t invest in your business no one else will. 4. Do you have a marketing plan? If not create one. It shows how you plan to get customers and make a profit. 5. How much money do you need to sustain the business for the first year of operation? Remember costs for storage, staff, car usage, utilities, fees/dues for memberships, website, marketing, attorney, CPA, etc. There are more costs involved in starting a business then the average person realizes.
When all of your ducks are in a row you will be better able to approach lenders/investors about your business. There are programs available from the local, state, regional government offices and nonprofits specifically geared to small business owners and do not base the decision solely on credit score.
Have you tried bringin in a partner for this venture? Have you asked friends, co-workers, etc. for assistance? Have you lined up your retail customers yet? They can be a good source to go to for financing. They can loan you some of the money up fromt in return for discounts later. You can set up a broker relationship were in they pay you a portion of a finder?s fee up front for particular items and pay the rest upon delivery. Have you tried peer lending sites ? Prosper, Lending Club, etc.
You have to get creative if yu want truly want to start this business. Also save a small amount from your paycheck every pay period. Saving $10 or $20 every pay period can add up pretty quickly.
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#2. "RE: Please help...Financially out of ideas" In response to Reply # 0
You have tough situation. You need to start thinking of ways to generate funding from your website by being creative. I have seen many people raise money by starting one idea and it leads to something bigger later on.
#3. "RE: Please help...Financially out of ideas" In response to Reply # 0
This won't help you right away, but I have spent the past year working on a new funding concept to help fellow Preneuraholics (serial entrepreneurs) like you. I will be launching a new website this fall geared towards folks like you that have a dream but just can't get funded through traditional sources.
I've spent the past 5 years helping others learn how to start their own businesses and write their own business plans. Everyone's biggest hurdle is usually funding so I'm changing gears.
Hang on folks, help is on the way!
(By the way, my current website below will be shutting down soon to make way for the new Preneuraholics.com.)