Forums: Discussions for entrepreneurs and small business.

 I have been working on my business idea for roughly the last year now, and while I have been told by several people that it is a sound idea and that I have a solid business plan, the fact remains that I have absolutely no money to put towards this venture.  Of course I have been assured by those who believe in my idea that there is money out there, specifically through the SBA, and that as long as my idea is solid, I can receive funding.  On the other hand, I have talked with many skeptics who feel the only people who can realistically start their own business are those who have a great deal of their own money set aside already.  Coming from my financial background, my fear isn`t so much that I can`t secure the proper loans, rather that something will happen and I will be unable to repay the debt.  While I have confidence in my idea, I am also practical in the sense that I am aware that any and all businesses are subject to financial hardtimes and certainly even the best laid plans can fail.  I have gone through all the steps to start my business, but I am terrified of applying for a loan, fearing that in a matter of months I may find myself living on the street.  I came here hoping to hear what others think about the idea of only those with money can make money, and to possibly be reassured that I won`t be living in a cardboard box should I go through with my plans.  While we hear of so many success stories, for each one I am sure there are ten times as many failures.  Thoughts or opinions?

Well my wife (and I) were dead broke when she wanted to buy our first salon. I mean we were making ends meet, me working an 8-5 and her making some money. But that didn’t stop our dreams. Fortunately we decided to start small and fortunately the place she was working at went up for sale. She applied for a personal loan and got 10K, which was her first larger sized loan, a scary part in her life. The owner then agreed for payments for the next 10K. That was 3 years ago and we now laugh at how scared we were because now we have loans for 10 times that amount. So we started a business on a broke budget.

My point here is that it’s about how much you believe in your idea, and how hard YOU’RE willing to work for it. My wife was so determined to own a salon she never gave up and succeeded. You might get turned down 30 times but you shouldn`t give up, there`s funding out there for the project you just have to find the right bank or investor. You know SuN has a member that was homeless and started a business.

I`d also like to add that you should have some type of contingency plan. It might take a year or even more to get the funding, and you NEED to have the float time so you’re not living in a box on the streets. Heck when we bought the salon it took almost 2 months get all the paper work drawn up, have the lawyers look at it, etc. But the deal finally went through.

One thing we found was that people that lack the drive to be an entrepreneur always seem to give negative advice. Not sure why, maybe jealousy, who knows, but don’t let those people discourage you. We had family tell us we would fail, we had friends say don`t do it, so we used that as fuel just to prove them wrong. Funny now, because were succeeding and they wont talk to us anymore. Oh well.

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He who gets greedy like a pig, gets slaughtered like a hog!

Hey Woodsy,

It`s interesting how we come across the skeptics and a lot of times fall prey to the fear they generate. That very fear, you start owning and prevent you from trying. You`ve gotten this far with your project the next phase is looking for funding.  You fear failing without even looking into it.

A little over a year ago, I thought we were at our last breath with our business. I had one house that I thought I can fix up and sell straight away.  I borrowed that money from a friend who wanted to jump ship before we even got a start to rehab it.  Needless to say, things were falling apart fast. I was ready to go back to work for somebody else.

It was a solid mess that anyone could`ve just walked away and called it a day. I used what we had left to finish the job, give the money back to our "friend", and re-financed the house with a cash out.  I know-more debt you would say?  I had to go all out with faith that I can turn this around. 

I did. 20 houses later, my business is at its highest potential.  I`m even able to fund other projects outside of real estate.  Looking back now  I`ve learned to take on every challenge with plenty of courage, faith in myself, and unquestionable conviction.

Take the risk and accept the challenge!

LT


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http://www.face2facevideocard.com
"videos can say it like it is"
09-21-2007

www.senatinproperties.com
real estate investments

I think it depends on the business.  If it`s a product, you need tons of money. If it`s a service you only need a bit of money.  But you always need some money.   

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

MN thats true and usually when I choose a service I try to pick a need service not a want service.

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He who gets greedy like a pig, gets slaughtered like a hog!

woodsy424… I feel exactly the same way as you when starting a biz. But really, it does “take money to make money.” At the same time, it takes a well thought out plan and a backup plan.

I agree with the “start small” concept. I also know that the true survivor, survives. You WILL find a way to keep the house pay the bills from loans and all that. You have to. It may mean shutting down a failed business and going back to work for “the man,” but it can also mean, never working for the man again.

You can work for “the man” until you save up enough to fund your new business idea, or you can take a loan (bank, friends… whatever). I guess what I am saying is that no one here can tell you if it’s right to go or not. Success is not something that people can foretell. They can only give an opinion on a plan (Business Plan).

It sounds like you have a great plan, with which others believe can succeed. Now you must ask yourself… How much faith can you put in someone else’s “telling of the future?” I think you can tell your future most accurately… of course input from others will help you decide if your ideas, and plans are likely to succeed…

As to the post question…I think it’s easier to make money when you have money… but I think it’s very possible to make money from very little money. It’s all about the plan and attention to details. How accurate is your business plan. If it’s completely accurate and no hidden factors derail your efforts… you will do fine! Whatever your decision, there is always a risk.


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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

I, too, agree with MNGrillGuy. My business required very little money to start. My suggestion regardless of what type of business you want to start: start small.

I can`t imagine that anybody would be so lucky as to not make any mistakes when starting a business. (I`ve made several myself.) And when it`s a small amount of money, and money that was actually yours, you aren`t in nearly the mess you would be in had it been a mistake made with a large amount of borrowed money.

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Accounting Made Simple | Sole Proprietor Tax Guide

having started up and failed a few businesses myself - I`d say it definitely takes money - whether it`s yours or someone else`s. I`ve yet to find a business that can be started with no capital.
While it`s true there are grants and loans for small businesses from the SBA and the government - it`s just not as easy as people will have you believe. Banks just aren`t lining up to give small business owners cash - in my case - I am/was trying to start a wing franchise. It still takes putting up your own money, having experience in the field, near perfect credit, collateral, and a lot of time filling out paperwork.




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No Eternal Reward Will Forgive Us Now for Wasting the Dawn.

If you are truely terrified, now may not be the time to move forward.  In my experience,  in order to succeed, you really need to be at peace with your decisions.   I recently found that this aligns with all that "law of attraction" stuff that`s been on the web and on TV in the past year.

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Cheers, Steve

I believe it is all about planning and selecting right resources. You do not have to have a lot of money, but you have to have the resources that compensate for the money you do not have. For example, if you were going to open a Kiosk in a mall, it would be good to know who the mall manager is, and build a relationship with them. Later, you will fund out that he or she may be willing to help you out on the first month`s rent of the Kiosk. Next, you may have a supplier is trying to get into the market, but you was the first to approach them with your business plan. They will send you enough product to get you started on a 30 day credit term. All you need now is your sales ability.