Forums: Discussions for entrepreneurs and small business.

I need to locate money for starting an online business. I have lost my job and completely destroyed my credit so conventional lenders are just going to laugh if I approach them. I'm honest, sincere and have been self-employed before so I understand what I'm in for.

I have re-educated myself and have a person who is somewhat of a mentor offering guidance and helping me get  this set-up. I have my web site almost complete and have an inventory in place  and ready to sell. I just lack capital.

I'm attempting to raise this money by listing items for sale. So far, I haven't had any luck.

I'm new here......just joined today. I'd appreciate any guidance as I've exhausted all my avenues and need some input. Thanks! kate

Have you gone the friends and family route trying to raise money? That is probably the only option that you have as a stranger will not likely invest in your business.

your screen name pretty much sums it up for me! I don't have friends or family. I do believe in myself and in this venture and will find the funds to launch in the next month or so. I do have a lot of things to sell and those items will bail me out! thanks for the input! kate

I’m sorry Kate, but if coming up with $1,000 is a problem, you shouldn’t consider starting your own business. Please don’t get me wrong, I’m very sympathetic with your situation, but there are very few successful online businesses that can be started with that kind of money, let own operated at a profit that would enable you to reinvest some of the profits and life on whatever is left. On top of that there are taxes and other expenses that need to be accounted for.

I don’t know what kind of business you want to start, but there are two websites that may be able to help you raise the funds you need:

1. http://www.prosper.com (Per-to-per lending)
2. http://www.kickstarter.com (Per-to-per funding for creative projects)

I have been following these sites for a while and saw people with the right story get the funding they needed. Please note that “Kickstarter.com” funds only creative projects, however, people there simply contribute to a project they like to succeed; so these funds don’t have to be paid back.

Please feel free to check it out. I hope it works for you.

Cheers!

Karl

Kate, here's a different angle on this.  I totally get your situation.  You hit a run of bad luck, you're pressing ahead.  You have the right attitude.  A lot of people in the world don't get/are afraid of the idea that someone is without a support base of family/friends.  They think "Eeeek!" like you're a pariah or something.  Thing is, many successful people were in that situation.  They found themselves in an intolerable situation, through no fault of their own, and sought to change it.  And along the way, they encountered some who call them "whiners" or "complainers" when all they did is state the facts of life.  Side note: most people who call others whiners/complainers are the whiners-complainers.  Just an observation.   Anyway, you're not alone.

$1000 is a low sum for many investors to consider.  If you have a business plan, it might be a good idea to amp up the amount you're asking for, in order to attract the right investor.  Whatever the case, make sure you can trust the person, and look to keep a majority interest in your business if at all possible.

I admire our courage.  You are on the right path.  Keep it going, it will happen.

You can take the help of an financial institution which  will then help u to get the money.

Why not just get another job until you can save up the money.  It will make investing the $1,000 even sweeter as it's your own hard earned money.

Even working a job part time at minimum wage can save up that type of money pretty quickly.

Sometimes my parents would always tell me that if I was not willing to work for it then I probably did not want it.

If you take that approach you will be surprised at not only what you can accomplish but you will also learn what are the most valuable things to you and they are often not what you thought in the first place

I think FastVenture's advice is spot on.  If raising $1,000 is a concern for you, you're probably not in the best place to be starting up a business.  Additionally, $1,000 is not a fantastically huge sum of money; I would be surprised if an online store with only that much capital would be in a good position to succeed.

That said, if you're looking to raise money, you need a concrete business plan.  If you don't have a business plan, write one.  They are great tools for evaluating weaknesses in your business model.  If you have a business plan that stands up to critical peer review, you'll be in a much better position to approach someone for funding.

Owner - TrailLove - The Best Deals on Outdoor Gear

I'm sorry but I disagree with the above comment. I have run a business for over 30 years and made quite good money. About three years ago, I moved back to the midwest to take care of parents and brought my business with me. I have made little money here and have spent savings, etc. My credit is no longer pristine and if I had a way of getting $1000-$1200 I could do marketing (rather than just my own copier/printer), I could buy paint to fix up the building I'm in and buy a new computer. That would make a lot of difference. People in this economy are starting businesses because they have no income, no jobs and no real hope. They need the hope to get something going.... That's what my business does -- we help find work, knowledge, colleagues, and more. There are organizations like Kickstarter.com out there that might be able to help, but I really get angry when people DIScourage others instead of INcouraging them.

If we can all band together like they used to in the "good ole days of the west" when people worked with each other to help each other, then maybe -- just maybe -- we'll start seeing growth in the economy instead of the chaos that now abounds.

My comment wasn't meant to be discouraging, it was meant to be realistic - many, MANY businesses fail because they are under-capitalized, at which point all of that is just money down the drain.

If the original poster is struggling to come up with $1,000 and is unable to find an outside investment for her idea, then it probably makes sense to wait until she is in a more financially secure place before launching a business.

Owner - TrailLove - The Best Deals on Outdoor Gear