money

[whisperwillow]

i was told that someone my age could not get a business loan because i need some kind of collateral which i don't happen to have right now. i either need good credit references or a piece of property or somethig to show them that i will be able to pay them back. at the moment i don't have any credit refernces because i haven't established a credit history. what are other ways that a 17 year old who wants to start a clothing store could get money fpor their business. my family and friends don't have the kind of money that they can just hand out so borrowing from the is out of the question. and how do i find an investor? i was told of sponsers as i have said on another thread but i still don't know quite how that works. PLEASE HELP!

[nado]

Firstly, do you have a business plan and/or a direction or market you wish to serve that has demand for another clothing shop?

[iGROWyourBiz]

i was told that someone my age could not get a business loan because i need some kind of collateral which i don't happen to have right now. i either need good credit references or a piece of property or somethig to show them that i will be able to pay them back. at the moment i don't have any credit refernces because i haven't established a credit history. what are other ways that a 17 year old who wants to start a clothing store could get money fpor their business. my family and friends don't have the kind of money that they can just hand out so borrowing from the is out of the question. and how do i find an investor? i was told of sponsers as i have said on another thread but i still don't know quite how that works. PLEASE HELP!

Traditional financing comes from a bank - they generally look for 3 "C's"

Credit
Collateral
Cash Flow (this is regular money from an existing venture)

Startup or "venture" capital is the hardest to get.

At 17 you cant be legally held into a contract. Which is why you don't have a credit card (without a major snafu) in SOLELY your name.

You might have a car loan, bank loan, credit card with a co-signer, but its not in YOUR name alone.

Gotta get your parents in on anything you do until your 18. No way around it in the USA. No one will dare get into a contract that can be voided, just because you want to. Thats what the law says.

Family, Friends and Credit cards are how most small businesses get financed. Loans, especially business loans for a new venture are hard to get.

Business plans are more or less an "entry fee" to weed out those not serious. No one gets financed because of a business plan, whether traditional or through venture capitalists or angels.

People invest in people. You have to show not that the IDEA is good, but that YOU are good, and capable of making the IDEA WORK!

If you had money to lend, and someone said i have a GREAT idea for commercial space travel, i just need an investor, yet they never even flew a model plane, much less been to space or have any clue on astro aeronautic engineering. Would you RISK losing your money? No, not unless they had as much risk as you do.

In the venture capital world (private investors) there is a saying that the owner needs to have "skin" in the deal.

Meaning someone besides the guy putting up the money, needs to have something to lose.

Its easy to walk away from someone elses money when things start to fail, not so easy if you can lose your home over it.

One great thing - work at a clothing store -even if its minimum wage, and learn as much about everything as possible. Stay late, go in early, ask about how inventory is done, how advertising is done, sweep the floors, ask to silently watch interviews, learn about the companies history, open up, lock up, how is loss prevention handled, what are overhead costs.

All that for minimum wage? You will do that and a lot more should you open your own shop.

[Booyeah]

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