I need advice on how to get money to start a new business

**Devon** · 05-24-2011 08:16 PM

Hey guys, I have a question for anyone who can pass some advice my way. I want to start a new business in the food industry. My question is, I need startup money (about $20,000) where do I go to get a loan?.. because Im pretty sure its my only option. This is where it might get a little tricky, my credit is great but I'm in my early twenties and I currently have a car payment and mortgage. I have no problem paying for my payments. So back to the question... will a bank, credit union lend me money without any collateral? or maybe like someone was telling me about government loan programs too. I just started looking into this and I can not give up on what I want to do because of the NO MONEY issue staring me in the face. Thanks

**birdshooter** · 05-25-2011 04:08 AM

hmmm...that's a tricky one. May be if not the full amount you might be eligible for a part of it!

**JKansas** · 05-25-2011 10:08 AM

Check out your local SBA programs. In Kansas we have SCKEDD (South central kansas economic development district). I'm sure you have similar programs. The only problem with them is they expect meticulous paperwork. Business Plans must be perfected and include all relevant info. I think they like 25-35k loans so you might bump up into that. They like good credit and honestly, they are more friendly to companies with a track record, but it's worth a shot for an SBA backed loan.

**kevinkllewis** · 05-26-2011 05:09 AM

Devon, the best way to get money is bootstrapping and networking. Let me give you some ideas about bootstrapping. I attempted to have someone do this idea some time ago and they were not interested. What you could do is sell dinner plates to people who don't have the time to cook. Let's say you sell your dinners for $10/plate. if you sell 10 plates per day that is $100/day and $600/week (assuming you do not sell on Sundays). If it costs you $100/ week to produce those 10 meals you will have a profit of $500/week. If you save every dime of that profit it will take you only 40 weeks to get the $20k you are looking for. That is less than 1 year and you don't have to worry about paying back loans.

Networking is the other way to do it. Find as many networking events as you can in your area. Talk to the people at those events and let them know what your plans are and what your needs are. I have found there are people out there that really want to help young entrepreneurs succeed and have the financial resources to do so. Sometimes they just want a small percentage of the profits as repayment for startup funding.

By the way, I have an online course on entrepreneurship that goes in depth about this topic. The link to the site is in my signature. Check it out when you get some free time.

**mmoraider** · 05-26-2011 10:27 AM

SBA loans are a joke...unless your considered a minority they will put the same hate on ya like a regular bank. Easiest way to get some quick dough is signup for some credit cards.

Thats how I funded my ebay business. Not the best option but if your careful it can get you off the ground.

With the economy the way it is nowdays your options are limited.

**EntrepreneurHub1** · 05-27-2011 11:50 AM

How about using crowdfunding. Basically you present a project and ask for small donations. If you reach a certain percentage of your proposed amount you keep the money, and no payback is required. There are quite a few crowd funding sites out there.

**PennyBartlow** · 05-27-2011 12:24 PM

Do you have any equity in your property? Banks are very willing to provide a Home Equity Line of Credit because it is secured by your property.

Penny Bartlow
Receive the ‘WEALTH MINDSET REPORT’
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**micha8l** · 05-27-2011 03:48 PM

You'll probably want to visit a bank (but wait) before you go rushing there, you'll need to compile a strong business plan, you've got to convince them that your business will be successful enough to pay back your loan. It'll probably be worth your while hiring a company to carefully construct your business plan o confront your bank with. No detail too small. Additionaly if you're from the UK the government will actually give you a small loan to get you started this could pay for your business plan

good luck mate

**JKansas** · 05-29-2011 02:53 PM

I have to agree, SBA loans seem impossible for startups unless you are a minority, woman, veteran, or minority woman veteran. But, it's always worth a shot, maybe your local sba will be different.... or maybe youre one of those!

I also agree with the bootstrapping, it's what I did. It ruined my credit, i'm consolidating, voluntarily, to lower my montly bills and make this work, but it's working! If it works I'll have my business off the ground with very little debt... If not i'll be 24 and broke, not unlike many 24 year olds! We're getting to a point where I can see the light... and maybe 6 figures and asolid foundation next year. I don't regret it at all!

**tiger1** · 06-01-2011 04:57 PM

hi,devon tell me little bit about your business for $20000 investment what percentage of your business you offering.

**Flux_nutrition** · 06-02-2011 05:51 PM

Check out Kickstarter.com you might be able to get some money there.

**DangerousCurves** · 06-05-2011 07:55 PM

SBA is an absolute waste of time. Banks are a waste of time (in a good economy) needless to say now.. funding sources only want to give you money when you don't need it. The only way to get startup funds is to do it on your own.. Get creative.. You'll find a way if you put your mind to it. When i started Dangerous Curves Swimwear, i was in the same situation, 27, no startup money, just what i thought was a solid idea.. Everyone i talked to said it was a waste of time, waste of money, lousy idea.. So i said F#$k em, I sold literally everything i owned on ebay, and i mean everything.. my furniture, collectibles, literally everything that wasn't nailed down.. and a few things that were.. i raised 15k from the liquidation of my personal items, and took a cash advance from a credit card for another 5k and started the business.. The business launched in 1998, and it's still growing and going strong 13 years later.. If you believe in your idea, be willing to take your own financial risks before asking it of others.. you may find that you don't need them anyway.. and the victory is far sweeter! If i can do it, anyone can.. it only takes desire!