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Thread: Getting $30K to start business

  1. #21

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    Quote Originally Posted by Dan Furman View Post
    Totally, totally agree.

    Here's another thing I have noticed in these threads - very few people want to put their own money into the deal. As in, home equity (like you did), draining their kid's college funds, credit cards, etc. Even the mythical great idea likely took some serious self-funding before any venture capital came in.
    I dont think what you are talking about applies to this thread. The person who asked for advise is just graduated out of college and he probably doesnt have any equity built up to this moment.
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  2. #22

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    Quote Originally Posted by alphadore View Post
    I dont think what you are talking about applies to this thread. The person who asked for advise is just graduated out of college and he probably doesnt have any equity built up to this moment.
    You have to remember there are a lot of lurkers on posts. There is a lot of information to be gained by experienced business people as well as people new to business from this thread.

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    I've done some quick research and according a report bankers use to help evaluate a client's business, the average pet supply store has a 53.4% gross margin and .4% net income. Ryanb4614, you may want to try to get a SBA microloan but it will tough. Traditional banks as well as microlenders have gotten a lot more stringent since 2008. You will need an excellent business plan showing realistic feasibility along with proforma statements. Iím not sure where you are located, so go to SBA.gov and search for microloans. There you will find the requirements and a list of lenders by state. Wishing the best!
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    Quote Originally Posted by alphadore View Post
    I dont think what you are talking about applies to this thread. The person who asked for advise is just graduated out of college and he probably doesnt have any equity built up to this moment.
    Sure it does. That's why I also said "credit cards, etc". The point I was making was that most people looking for money never want to put their own in, or do self-funding via credit available to them/etc.

    What, are you saying that someone out of college with good credit can't get a credit card? Or several?
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    Actualy post #1 of this thread said he just bought a house within the last year. I would imagine with the credit precautions that they have stopped loaning money for homes with Zero down, so, presumably, he does have some equity. He also referenced that he had excellent credit.
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    You could use a website such as Lending Club or Prosper both of which are pere-to-peer lending. Personaly I like Lending Club a little better, I was able to get more from them when I started my business at a lowere rate. I believe the max loan oferedis $25,000. Of course your could always ask friends/relatives for the other $5,000. Another option would be to open lines of credit.

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    if you dont have $30k i dont think the bank is just going to loan you $30k because you want it

    do you have $30k in equity in your house? then do a 2nd mortgage

    cash in your retirement
    borrow from family and friends

    thats what people do.....take a risk..

    my method would be simple...id save up $30,000....get a 2nd job, work over time....

    a suggestion i have also....hire someone to work at your pet store while you keep working your full time job....

    it may take years before your business makes a profit....mine took 8 months of part time before it was going good enough to go full time....some businesses never even get to the break even point...by hiring someone else to work the sales counter your taking very little risk....if you quit your full time job and the business fails you could lose everything you have in life.....while if it fails and your still working full time for someone else life will go on...you'll be out $30,000 but life will go on

    i always take the conservative approach....take the least risk you need to

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    Quote Originally Posted by Dan Furman View Post
    Sure it does. That's why I also said "credit cards, etc". The point I was making was that most people looking for money never want to put their own in, or do self-funding via credit available to them/etc.

    What, are you saying that someone out of college with good credit can't get a credit card? Or several?
    This is a good point. A lot of people who want to start a business want to do so with the least risk possible. The problem is that starting a business is all about risk. If you're going to take that risk, go all in. You can't ask someone else to risk their money if you're not willing to risk yours.

  9. #29

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    Another option is researching revolving loan programs that are provided by local economic development agencies. They get this funding through SBA, EDA, USDA to stimulate local communities by providing loans for businesses that need a little help in getting started or expanded. While they don't typically fund an entire project they can fill gaps in financing and make it easier for a bank to get on board. BusinessLoanFunds.com is a directory that shows these programs by county which may help you in getting funding.

    Good Luck!

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    ryanb,

    There are plenty of places to get the money you need to start your pet supply store. One place not yet mentioned here is online microfinance. While you can not borrow $30k all at once, you can borrow upwards of $15K from places such as Prosper.com and LendingClub.com if you are in the US, or Zopa.com and RateSetter.com if you are in the UK, or P2P Financial if you are in Canada. If don't live in any of those places, consider selling pet stuff online at first as a means of building up your business. You can get a merchant advance , which is like a loan, to buy inventory from Kabbage.com.

    Good luck with your venture. Don't let the naysayers get you down.

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