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I want to start a daycare in Ohio but I don`t have the money. I have a business plan and a building ready to lease but I don` t have about 50,000 to spend on supplies and renovations. I have bad credit and my family doesn`t have the money to give for loans.
Hi Kellandjohn,
I know the dilemma
and I have some suggestions for financing. I suggest you become a corporation.
Why? Well let me tell you…
A corporation is its own identity. Meaning loans, debt etc
are given to the corporation not to the principals.
Now hold on now it’s not just as simple as incorporate and
money is easy to get.
You will have to build up a credit file just like a person.
There are several companies out there who can help you build a business credit
file.
You should apply for a DUNS number that is free and will be
used for investors, banks etc to use when deciding to loan or not to loan.
You can go the PPM route which is you 15% to 40% of your company
to private shareholders. You will need a business plan so make sure it is
accurate, and verifiable. There are several companies who will help you file
for this and they get paid on the back-end meaning they get you the money and
they get 2% - 5% of the final total of money.
If you are women there are several minority grants the government
offers to help minority business owners. Do a grant search online.
Also there is some angel investing networks that only do
women business.
A simple search for angle investors should reveal the links.
I would suggest looking at the SBA and SCORE websites for
some helpful advice and I think they will review your business plan for free.
-or-
You can scale down your business plan open up a home daycare or partner with someone whose home you can use build up your clientele and business bank account until you can get a smaller loan, or self-finance the move.
I hope this helps, good luck-Eric
A DUNS number is the worldwide accepted equivalent of what your
Social Security number is used for in the states. It allows creditors, companies
who do business with, potential clients and lenders to get to know about your
company, many lenders and venders will not issue credit without a DUNS number,
D&B issues a credit rating based upon history.
Without a DUNS number or good credit standing in DUNS then
the banks will require you to personally co-sign loans etc so they will take
your house or car if the loan does not get paid back. Vendors will want to get
paid in advance as they have no recourse to pursue or ability to judge bad loan
from good loan.
In other words having a DUNS number is essential to doing
business if you need a loan, or credit. It gives lenders a way to measure your
risk at paying them.
If you ever want to do business with the government you will
be required to have a DUNS number.
Also having a DUNS number will make you more credible in the
industry and taken seriously as business. (Otherwise why go through the time
effort and scrutiny??)
Now getting DUNS is free, Dunn and Bradstreet will track
your data, etc. However they have several programs to choose from that will
cost. Like a credit building program which takes more data. I think it cost
$250. You can go to the site and choose which program fits what you want to do.
(They always sucker you in with the free stuff then hit for the cash before you
can get out the door.)
If you are not under financial pressures then you can take
it slow get the free DUNS and build your good credit record. If you want to
fast track it then you will need to pay a fee.
It all depends upon your need.
http://www.dnb.com/us/
https://www.dnb.com/product/birsampl.htm
I hope this information is helpful,
EricI am happy to be of service.
Take care,
Eric
a lot of fun to run a daycare center, also you can make very good money too. Me and my wife run a daycare at our own home,, we watch our own kid and 4 other kids.
Me and my wife discuss about start up a daycare center but it is cost too much and they regs to have some kind of license such as CPR.
I highly recommend you this site http://care.smartchildguide.com you can get a lot of information there about daycare.
ohio is the best place to stark county childcare daycare school and some good schools doing it very well and children are very happy in this school .
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