Startup business need funding

[brokedreamer]

Hello everybody! Im making the plunge into entreprenuership and am trying to get some tips, advice, help from people who have been in a similar experience. Im basically trying to start a retail store but due to my credit (which is between 620-700), the fact Im a startup, and being unemployed I cant seem to find the funding I need to get things off the ground. I have a few personal credit cards with not more than a $1000 limit and a business credit card with $1000 limit bu its still not enough. I tried seeking help from local non-profits that offer microloans but even they want my own equity to be involved ( I dont have equity, just an dream). I dont qualify for an SBA loan as the few banks in the area that offer SBA loans dont offer it for startups. I even tried peer-peer lending but they also dont help startups and want a high credit score. I was wondering if anybody has been in my shoes and was able to get funding to start their business? I am currently bootstrapping as well and have gone to the extent of selling collectibles I own. Any help would be appreciated. Some more info to know is that my student loan will be back into good standing within a month, I have never declared bankruptcy, aside form my student loan I dont owe any money. I am current on my bills.

[Freelancier]

Based on your description, the only people you'll likely be able to get funding from are your family members. No investor would invest in someone with neither expertise nor their own equity. Maybe instead of following your dream now, keep the dream in the back of your mind and work to get the experience and contacts necessary to realize your dream. In other words, if you run a retail store, someone will consider funding you to run another one.

[brokedreamer]

Based on your description, the only people you'll likely be able to get funding from are your family members. No investor would invest in someone with neither expertise nor their own equity. Maybe instead of following your dream now, keep the dream in the back of your mind and work to get the experience and contacts necessary to realize your dream. In other words, if you run a retail store, someone will consider funding you to run another one.

I gotcha, do you know of any funding options if I wanted to purchase an existing business?

[Harold Mansfield]

Hello everybody! Im making the plunge into entreprenuership and am trying to get some tips, advice, help from people who have been in a similar experience. Im basically trying to start a retail store but due to my credit (which is between 620-700), the fact Im a startup, and being unemployed I cant seem to find the funding I need to get things off the ground. I have a few personal credit cards with not more than a $1000 limit and a business credit card with $1000 limit bu its still not enough. I tried seeking help from local non-profits that offer microloans but even they want my own equity to be involved ( I dont have equity, just an dream). I dont qualify for an SBA loan as the few banks in the area that offer SBA loans dont offer it for startups. I even tried peer-peer lending but they also dont help startups and want a high credit score. I was wondering if anybody has been in my shoes and was able to get funding to start their business? I am currently bootstrapping as well and have gone to the extent of selling collectibles I own. Any help would be appreciated. Some more info to know is that my student loan will be back into good standing within a month, I have never declared bankruptcy, aside form my student loan I dont owe any money. I am current on my bills.

Yep, I've been in your situation..student loans and all. Unless you find a friend or family to loan you the money, you're pretty much on your own. Ideas are a dime a dozen and there's nothing so special about a retail store that's going to impress a private investor so much that they will give you...no experience, no equity, no money, bad credit..thousands of dollars, to most likely fail as most small retail stores do.

Why a retail location that will cost you thousands in start up and overhead that you have no chance of getting, and not eCommerce which you can start with a few thousand and little overhead?

[SpeakerLia]

It is easier to get a loan if you have a job. Banks want to see that you can definitely pay them each month. With no job and a new business it is tough to get money. Consider getting a job. Then get the loan and fund your business. Work it part time after work. You can quit your job when your business replaces the income of your job. You can also joint venture with others who have money. You can also sign a promissory note to borrow from friends and family.

[phanio]

Great ideas here - especially working and starting your business part time and that you would be better served starting your retail operations online and then move to a store front in the future. And, with all the resources out there - including ebay, amazon, etsy, etc. you might be able to start your business with just a few dollars - not thousands.

Not sure why a micro lender would turn you down because you don't have equity? Most of the micro loan programs I know don't require equity - they do want collateral but will take personal collateral if you don't have business assets.

While many have stated that loans or investment from friends and family will work, know that you might also think about applying for a personal loan or line of credit. Most local and regional banks as well as credit unions offer these products and their standards are much more lenient than business loan standards.

Lastly, have you talked with suppliers - both here and abroad? Many will offer trade credit - allowing you to source their products, mark them up and resell them for profit. They do not require payment from you until you sell those goods. This will give you the chance to get inventory, use your own or one of these international eCommerce sites to sell those products and get you earning revenue without spending anything but your time.

[Paul]

Not to pile on but Harold and Freelancier are right. To be a bit harsher, based on your info, the chances of financing a retail store are about nil.

Also, as has been said, running a retail operation is NOT easy operationaly or financially. Start up inventory requires cash. Trade credit takes a long time to secure. Even with trade credit it is difficult. Trade credit is just a cash flow tool, like a revolving line of credit....fixed expenses continue regardless.

Unless you really know retail in general and your product line specifically its a bad idea.

The best advice was using the internet outlets to get your feet wet. Ebay and others are brilliant in that you pay your "overhead" after the sale and only when you make a sale. A basic online Ebay store is about $ 20 a month and then between Ebay and Paypal you pay around 10% to 12% for each sale. Much better than paying $ 1000 for rent, plus utilities etc. BTW-without personal credit and a deposit you are unlikely to find retail space anyway.