18 Year Old Seeking Small Loan

[dalexdesign]

I am 18 seeking a small loan. I do not have credit. I am starting an online shop and need approx $4k-$5k for business setup, marketing and inventory.

If you know any legitimate ways to get a loan at my age with no credit with interest lower than 12-14% please let me know.

I am in the process of writing the business plan. I want to become a LLC.

Thank You for your time!

[Raul]

Hi dalexdesign

Here are some thoughts about your business, hope this helps:

1) I congratulate you to make two key decisions:

- Write a business plan
- Incorporate an LLC

2) Ensure that your business plan covers different areas like:
- Your mission (to serve others)
- legal (the LLC part, your site's legalities, licenses, etc.)
- financial planning (show how much money do you want to earn and spend)
- communications (how are you going to reach your market)
- product (supply, demand, niche market, your competitive advantage, etc.)

3) If you are setting up a website, please take into account that a website works if follows the C-T-P-M process...

That means: it has valuable Content that attracts Traffic and Presell costumers and then and only then Monetize your visitors through many options (adsense, sales, etc.)

4) Have you considered work with drop shipping instead of buying inventory? That would help you to reduce your capital requirement, taste your market, take a measured risk, etc.

If you have any questions, please PM me or contact me through my website.

Kind regards,

[dalexdesign]

Due to the fact that I am getting into collectibles. They are no dropshippers around for what I plan on doing. I have looked around. The business is actually a sturdy one with a few out there in which have been in business for over a couple years.

I actually am setting up the website and the business planning now. I have registered my domain name as well.

I am picking a niche which is hot for all kids and adults and is available everywhere. The upside of my approach is the knowledge, passion and selection I can offer compared to big box stores.

I will be working with 1 dropshipper, possibly 2. The rest will be from my business inventory.

[Raul]

Hi dalexdesign

Having the knowledge and passion is a good advantage to succeed indeed.

However to find somebody to lend you money or invest in your idea (even small amounts) you have to think like him/her:

Why should I give you money for your idea?
How do I know that I'm not going to lose my money?
When I'm going to recover my money?

Therefore, here some comments or questions that you have to answer with your business plan:

1) Have you found your niche through a keyword research? If not, do it. Show the numbers.
2) Is this niche profitable?
3) Identify your potential costumer. Nobody can satisfy a huge market like kids and adults. This is critical to connect with your goal market.
4) If your website will be your main contact point with your market I highly suggest you to study the C-T-P-M process that I've mentioned before.
Here's a book named Make your Site Sell that's considered The BIBLE Of Selling On The Net to fully understand how to succeed on the net.
5) If you're on collectibles, how are you dealing with the suppliers' system?
6) Probably you'll have to show some experience before to approach somebody with your plan. For instance saying:
Hello Mr. Investor I've been in this business for the last xx months and I've incorporated collectibles LLC and built collectibles.com that nowadays has 2.500 potential costumers a month. So, as is mentioned in our Business Plan we need $ xxx in order to buy inventory of the product XXX, etc. etc.

Hope this helps. If you have questions please contact me.

Kind regards,

[CIsaac]

Hi Dalex,

I don't mean to sound negative here but finding the loan you need will be difficult with no credit at 18yrs old. Credit cards are usually your best bet for the dollar amount you're seeking. The upside is that some places will be open to giving you a credit card because you're just building credit, but the downside is that you may not get the limit you're seeking.

Definitely complete your business plan and you could also use it to find a partner or someone who will carry an executive title in your business. If someone carries a CEO, CFO, or President title (or something similar) they can apply for a credit card in the business name based on their own credit.