Forums: Discussions for entrepreneurs and small business.

I am currently seeking funding for my business. I have completed my business plan, demographics, competition, years 1-5 projections and all the "homework" on my business.

 

I am 24 years old I have no assests, I live with my parents and only have about $35K to invest in my idea which costs 250K-300K to startup.
 

I was thinking about an SBA loan but i have been reading that you need at least 15% of the startup money excellent credit which i have (715) and collateral which i do not have.

I have 2 out of 3 of the requirements.

 

Is it possible for me to buy a foreclosed house that is in really really bad shape like falling apart for 5K but it assessed for 70K and use that as collateral towards my SBA Loan?

 

If not what are some other ways I can get my funding?

 

Thank You in advance.

That said, the SBA is not the only game in town. There are other possibilities, where the executability factor may mean more than a specific percentage for down payment. The viability of each is depends upon your specific situation.

 

If you`d like to discuss your situation, contact me directly using robert@bizgrowthmasters.com or send me a PM.

More details needed, about the business. I find it unlikely that a bank will give you $270K for nothing of tangible value.

 

Have you talked to your local bankers?

 

 

Attention: Potential Investor(s)

I am currently looking for funding for my business, below you will find information so that you can determine if this would be an investment opportunity you may be intrested in.

[B]
Ownership and Management
[/B]

My business will be owned and operated by me. As a sole owner, I am uniquely qualified to manage this opportunity. I have an associate’s degree in computer science and have been the manager of a transportation company for the past six years. This has qualified me to deal with many different types of customers and make sure they are happy. I have solved various problems in the work area and do my best to better the company in any way I can think of. I also love to make kids happy and bring a smile to their faces.

[B]
Business Summary
[/B]

This new business is a proposed Children’s / Family Entertainment Center and will offer indoor entertainment and recreation for families with young children ages 0 – 14 years.

Activities will include, a variety of inflatable play structures, including a children’s 5 in 1 Moon Bounce, Bounce Playground, Giant Slide, Dodge Ball Bounce, Obstacle Course, Boxing Arena along with other complimentary games and activity centers catering to our target age group and their parents. Themed as America, the facility will incorporate fun games and equipment for all ages.

Primarily operated as a party facility, My business will market itself as an “Edutainment” Center catering to the growing desire of parents (especially mothers) to see their children learning, growing and nurtured as they play.

My business will further drive revenues from an assortment of popular redemption games and a well-stocked merchandising counter, concession machines with snacks and beverages, and areas for creative play opportunities along with comfortable seating and viewing areas for parents.

[B]
Target Market
[/B]

My businesses target market is young families with children ages 0 to 14 years.

This age group will be the majority of the play center’s patrons. As a demographic, they have the ability to express where they want to have birthday parties and enjoy family entertainment and what they want to eat.

Our secondary marketing focus is mothers. Mothers tend to fill different roles, which will lead them to patronize my business. Weekdays they gather with their toddlers and other mothers, and mothers tend to plan birthday parties and family outings.

Our third target market will be sports teams, organizations, and other community groups for group bookings, special events, etc.

[B]
Funding Amount
[/B]

My business will require $298,489.00 in total funding for start-up and operating capital. In addition to a management investment amount of $30,000.00.

Our key objectives during the first 12 months are to develop a profitable base of new and repeat customers. To support this, the management team will employ a guerilla marketing strategy to get my business into the hearts and minds of the local / target community. We will do this by working with local schools, daycares, church-groups, and seasonal activities and team wrap-ups, small corporate events and family reunions, among others.

[B]
Intended Use of Funds
[/B]

The intended use of these funds will be a variety of things, for a detailed list of these funds contact me. A brief description of the funds are fixed assets:activities, fixed assets:facility, build-out/ leasehold improvements, soft cost-startup: deposits, advertising & marketing and inventory.

[B]
Time of Investment
[/B]

The loan amount of $299,489.00 will be paid back in 60 months (5 years).



If you are intrested in investing in this business please contact me and I will be glad to present you with more information on this business opportunity.

Regards,
Craig

Craig

 

be very careful about this. I have seen many situations like this involving private investors and they don`t generally turn out well for the business owner.

 

The fact of the matter is, when someone invests that kind of money they will have substancial control of your operation, you will be beholden to them.

 

There will be language in any contract that will allow them to take control of the operation if it is not performing to their expectations.

 

Do you have any other options? Can you cut you intitial capital requirements, and operate from the cash generated from the business?

Mark,

 

At the moment i have no other option. I have not yet taken my loan needs to a bank yet, so before anything I will try that. Other than that I can not cut my capital down very much. I deff do not want anyone to take control of my business. I don` think I would be able to build as I go because i would need a nice place and cash to get the business to me an to get going. No one would want to come to my place if its like shabby loooking. Do you have any ideas for me?

 

regards,

Craig

If you only want the 300k total, save up 60k and ask for 240k. If you`re going to add a year`s expenses, you`ll have to figure them out - salary and whatnot, and adjust both sides appropriately. This is a thorn in my side as well. Hope your idea works out. Just avoid investors.

Oh, here`s how I plan to get my startup capital. Are you going in on this alone? If you`re not, you might have significant startup money already. I`m going in with two people. I`m taking out the big loan in the end. Both of them are going to find out how large of a personal loan they can be approved for. I`ll save the difference, they`ll take the personal loans, which won`t count against me any, and we`ll have the collateral. If one of the loans falls through, we use the savings and repay the loan that comes through early, and the person at worst gets a credit boost. If you have friends going in on this, you can use personal loans to earn the equity for the big loan. I have a thread going asking for tips on this strategy lower down on the page, but the strategy seems sound to me.

Craig

 

In the past 10 years, i have seen 3 instances of businesses taken over by "angels". Send me an email with your specific questions.

 

Where are you located, do you have a business plan, pro forma financial statements, or any relationships with banks?

 

 

Yes i have my business plan finished along with my projections for years 1-5. I will be located in NJ.

 

I do not have nay relationships with banks.