A $ question..

Alcapown · 06-08-2009, 02:18 AM

Hey, I am just wondering before I post anything about my ideas, business plan etc, I am just wondering the best course of action for a 19year old, bad credit because of early mistakes at the age of 18 with a credit card, to go about getting start up costs to go into business for myself. From what I gather, I guess draw up and create a great ,creative, legit business plan and presentation and then head to the bank, and present it as best as possible , ask them how I can make it better etc. Is that the best course of action? I'm not really delving into the business itself with this post, but the best way to get the start up money. Thanks for listening.

Alcapown · 06-08-2009, 02:21 AM

Oh and as far as dollar amount, which presents the major difficulty imo, from research I would think around 50-65k. Forgot to add that.

noob · 06-08-2009, 03:10 AM

Two things. First, most experienced entrepreneurs would highly advise against bank loans. Second, in this economy you're going to have a hell of a time getting a bank loan even with good credit let alone being young and have bad credit (even with a co-signer).

I highly recommend you do a bunch of research as you're definitely missing a lot of info from just that post you've made (not trying to be an ass, just point out that you should research more before asking the question as I highly doubt anyone here will give you complete written instructions with absolutely no other knowledge about what you're getting into).

If you're wondering why not go the bank loan route, I answered in more details here: business plans and proposals

Alcapown · 06-08-2009, 03:27 AM

Quote:

Originally Posted by noob

Two things. First, most experienced entrepreneurs would highly advise against bank loans. Second, in this economy you're going to have a hell of a time getting a bank loan even with good credit let alone being young and have bad credit (even with a co-signer).

I highly recommend you do a bunch of research as you're definitely missing a lot of info from just that post you've made (not trying to be an ass, just point out that you should research more before asking the question as I highly doubt anyone here will give you complete written instructions with absolutely no other knowledge about what you're getting into).

If you're wondering why not go the bank loan route, I answered in more details here:

That thread was a great read, much appreciated. And basically, my question is just a general question as to how start up funds are achieved from an outside source, especially to someone of my age and credit, and is a bank a legit probability in which to achieve said start up funds. And after reading that thread, apparently it is a last resort, although I am a bit confused as to the other options.

Alcapown · 06-08-2009, 03:35 AM

Basically my reason for posting is a general question as to what are my/the best options to go about funding start up costs from an outside source. Such as what are the available options besides the bank and knowing my age, credit etc, that I can pursure and have a shot at even given my handicap.

Alcapown · 06-08-2009, 01:30 PM

Any other advice, knowledge etc would be greatly appreciated.

Alcapown · 06-09-2009, 12:14 AM

shameless bump.

noob · 06-09-2009, 01:32 AM

As mentioned in the other post, you want to explore other avenues such as raising the funds yourself by several means, finding ways to raise capital, through a job and savings, whatever it takes. You can also ask friends and family although most would also recommend avoiding this route to avoid the pitfalls of ruining the relationship, going through an angel investor, and finally a VC.

In no particular order but those are some, not all, of the options on the table. In most cases you're going to have to prove a concept if you're trying to raise funds through other means than yourself which mean ideas on paper and no actual business creation or no actual running business equates to very little chance of success at raising capital.

The only chance I can think of off the top of my head (which isn't necessarily your only option), is to find a business partner who is willing to invest and you are the main workforce in exchange for both of you running the business together. Otherwise you're pretty much going to have a tough time raising funds.

chuff1026 · 06-09-2009, 02:56 AM

ok
this is just in my experience. i find money for startups so i think i know a little about this

1. VC is out of the question for the kind of money you are looking for

2. Many people say that you should get investors. now if you do not have any family that are willing to invest, the idea needs to be a KILLER of an idea for a random investor to invest 50K plus in your project.

3. find a family member with good credit to cosign on a loan..there are still startup loans available... if this is an option explore it.. loaned money is usually cheaper than invested money....

4. build business credit..this may take time if you do not have money to purchase a shelf corp...but its worth it..you do not need strong personal credit to build business credit and you are not personally liable for the credit so the risk of the business stays with the business. if you have the money to buy a shelf corp, it will run you $2000-$5000 depending on the vendor.. i have a couple..but it all depends on your goals...

marC