How to get deposits from people, beforehand?

[krupt]

I have a question I am stuck on.

I am looking to launch a new venture - this would be in the new year.

You guys might remember my Summer School idea I threw around on the board some months back.

Well I have kept on doing research on this on the side and I am at a point where I moreless have everything in place.

One thing I do not have in place is what I wish to ask you guys here to see what you suggest.

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I want to bring people over here to London. So I need accommodation. I have found some good places with good rates for large groups of people for accommodation.

So far so good -

But I need to book this accommodation 6 months before hand. So if I want to open this for the Summer of 2008, I need to book the accommodation by January.

Now what I wanted to do was, anyone who wanted to take part in the product/course, has to pay 50% deposit upfront.

This 50% from all the people would give me enough to take out the accommodation.

This is where I am stuck - how can I get 50% deposit upfront from the all the people interested 6 months beforehand?

Why will they trust me? How do I make them trust my business? It is a new business...what is the best way to do this?

50% deposit 6 months beforehand and then, 50% on their arrival date in London. That is what I want to do and what I am thinking but how to get tht money out of the people 6 months beforehand.

Is it a long shot or is it possible?

[fisel]

Anything is possible.

How much is the deposit?

What exactly are you doing?

Do you have a polished business plan?

[krupt]

Deposit would be around £500 and yes I have a polished business plan

[jasaunders]

Your best bet here is to not get the deposits from people that far in advance. If you were a thriving business, space is limited and it fills up fast, then it might be possible. Otherwise, it might be reasonable to get a deposit 2-3 months ahead of time.

Your best option is to negotiate with the place offering accomodations. Tell them you can't pay that far in advance and see if you could work something out. If not, maybe you could find a different place that will.

[fisel]

I think you’d have to put yourself in the customers position and decide yourself if you would leave a deposit for that amount that far in advance for whatever it is that your doing.

I’d probably have to agree with jasaunders on this one, 6 months is a long time to leave a deposit down on accomodation especially for a new venture. If you cant negotiate with the place offering the accomodation, I’m sure in the London you’ll find somewhere that will.

[krupt]

Thanks Josh, I'll do that and see what other accommodation buildings I can haggle around with. I think they said 6 months as I wanted to book around 200 rooms.

[ltressel]

I would take £100 deposits as an early commitment from your prospects. Be honest that this is to put a hold on their accomodations. You can show all the receipts collected to your accommodation "partner."

The receipts shows that you have commitments and therefore you can use that as a leverage for them to hold your rooms for you. Hopefully with out you having to put down any money or less than the 50%.

Keep shopping it as Josh said and find someone who would say yes to your proposition.

LT