Forums: Discussions for entrepreneurs and small business.

Hey ya`ll,

Just joined yesterday and stuff. Before I actually go through and post my request, are there any investors or loan officers or whatever on here that is willing to fund me on the basis of a solid business plan and not my credit score?

wildstorm,

Generally, investors (who purchase equity) are less inclined to use the credit score as a major factor in their decision. On the other side, traditional lending institutions (banks) are almost sure to use it.

Since your post mentions your personal credit score - I assume it`s not too good. Depending upon the amount, there are sources for debt funds even if your credit score is low.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Hmmm..... ok. Well I guess it doesn`t hurt to try so here goes:

I am looking for funding in the amount of $17k. The two ventures that I want to get into are reselling upgraded used/refurbished computers on eBay and the local community and offering a visual effects creation service for the independent film community which is pretty much worldwide.

The Summary of the ventures:

These ventures are explained in detail in my business plan which I created in Microsoft Word and can be emailed to any investor willing to review it. Basically with the reselling of computers, I would buy used PC`s that are at least in the range of 1 month old to 3 months old and upgrade the hardware such as new graphics card or more ram or a bigger hard drive and resell them to customers at a resonable prices. I started out selling new laptops on eBay. Started the business last year in January. My gross income in 2006 was $19,373 on eBay. Not many first year startups selling on eBay can say they made that much. Which is why I believe I can increase revenue by selling upgraded used computers on there. The other venture, visual effects, I will be advertising my service to independent filmmakers all across the world who want custom made visual effects added to their films at broadcast quality and affordable pricing. I`ve setup a portfolio type account on youtube. My account features some visual effects clips that I have done for myself and can be viewed by visiting this link:

http://youtube.com/profile?user=wildstormfilms

Thats pretty much what I`m looking for. I`ve been suggested to go to Prosper.com and I have but did not meet the requirements of starting an account on there. I`ve also been told to ask friends and family members. Its a good idea though and I`m sure it works for people but in my case no. My friends and family do not have that kind of money. I`ve been told to find a friend or family member who can co-sign for me so long as they have a credit score of 650 or above. That would work but I know nobody that even has a credit score like that.

Others have said to do the piggy backing deal. I agree that can work.... if you don`t have a mountain of bills to pay.

wildstorm,

While I fully understand the entrepreneurial spirit that drives the multiple project activity; when acquiring capital, I suggest that you focus on one or the other - especially when they are diverse.

It sounds like you have some market traction on the reselling of computers, so that may be more attractive to "capital" in the short term.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

I had a feeling somebody would have a statement like that which is why I already made a business plan specifically for the reselling of computers and other electronic peripherials.

As some of you may know last year I made $19k on eBay and I`m looking to build from that. Although in my previous thread I wanted to start a videography business and have been given advice and suggestions on how I should go about doing that business. So I have decided to do the videography as a part time deal as someone suggested on there. Buy what I can when I have the money to get equipment and focus on a stronger part of my business which of course is selling computers.

 

Now this venture is not strictly for just the internet. I also want to start selling locally as well. Of course this would be run out of my home for the time being. I`m located between 2 towns and we get medium traffic where I live. Its not going to stop with just selling computers either. I`m also looking to sell other electronics such as Playstation 2`s or Nintendo Wii`s and SNES, NES, games. Some new and some used. Selling computers, for example, used desktop computers that are no more than 4 months old can be upgraded with the latest hardware and can be sold for a fair price online and offline. Refurbished electronics are the best way to go in my opinion. I would also service computers for those who are having problems with their computers. All though there`s one place in town that does that, according to my research, a "few" folks around here have been unhappy with their service and I`m the ones that ends up cleaning the mess. So I`ve got some referrals but thought I might as well go and really get into this.

 

So yeah there`s going to be alot of competition on eBay. Competing with other sellers on there but I`ve managed to make more on there than I did when I worked a 40 hr job. Don`t get me wrong. I`m not doing this just because "hey, I can make millions on eBay." That isn`t and will never be my mentality. My mentality is to make the customer happy and I have done so with the 100% positive feedback rating. Only one time I had an item show up to a customers doorstep damaged and that was when I let the shipping store package the item. I always do my own packing of the items.

 

I will also be competing locally against stores like Walmart and one other computer servicing place in town. Of course with Walmart they sell new stuff but there`s always people here that are looking for bargains even though it is used.

 

For example:

 

(10) Dell Optiplex Pentium 4 computers - $3,089.95

Discription:

Pentium 4

2.8 GHz

40GB Hard Drive

1 GB of Ram

Keyboard and mouse

 

And this lot of 10 are refurbished computers.

 

So your saying "ok, 10 computers for $3,089.95 so there about $308 each. It doesn`t come with a monitor or speakers. There`s a rinky dink 40 gb hard drive and a CD rom drive oh whoop tee doo!." Ok so I`ll upgrade it.

 

Upgrade expense list:

 

1. 160 gb hard drive - $59.99

2. DVD Burner - $34.99

3. Dell 15" flat screen LCD monitor - $89.00

4. Dell PC Speakers - $15.00

5. Graphics card - $55.00

 

Total: $253.98 for upgrade expenses

 

Now I said earlier that the Dell computers are $308 each so my final price for a refurbished Dell Optiplex Pentium 4 with the added accesssories and upgraded hardware would be $610.00 + tax. So if I sold all ten of these at that price that would amount to $6,100.00 if I were to sell off all 10 before the end of the month. And since I would be selling other products as described earlier that end of the month amount would be more. Now your saying "well gee thats kinda expensive for a refurbished computer." Uh yeah but thats because I`ve gone through and upgraded it with newer components. You get more bang for your buck. So I believe there`s money to be made with this especially if I can buy, upgrade and sell 10 computers plus other electronics either over the internet or locally before the end of the month.

 

Startup Summary:

 

(10) Dell Optiplex Pentium 4 computers - $3,089.95

(10) hardware and accessories components for Dells - $2,539.80

(25) Playstation 2 game consoles - $1.250.00

(25) Playstation 2 Games - $368.00

(7) Compaq Presario SR1817CL Desktop computer - $2,667.00

(7) Hardware and accessories/components for Compaqs - $1,680.00

(5) Nintendo Wii game consoles with Wii sports games - $2,250.00

 

*packaging material provided by the local businesses

Total Startup Expense: $13,844.75

So thats the startup expenses for this venture. This has potential to be a money maker. As stated earlier this isn`t some get rich quick scheme but this venture will keep a constant cashflow. Plus Christmas is just around the corner so you can bet consumers are going to be looking to buy buy buy!

Let me know what you guys think.

I truly can sympathize with you.  When I was beating pavement trying to get my own personal home-based business off the ground and establish it in a professional physical location, I almost lost hope.  I kept hearing the same thing over and over again at every bank I tried. 

One of the biggest hurdles I faced as I tried to make my business a reality was how to convince a lending institution that my business would make enough money to repay the requested loan amount. 

The bottom line is that I found out, in each attempt I made to acquire a small business loan, that collateral is one of the biggest setbacks most entrepreneurs and small business owner have to face and overcome. 

I found it very difficult to convince any bank that my home-based business could be a tremendous success, if I could acquire the resources I so desperately needed to get things on stream.  The fact remained that my efforts were fruitless.

However, I discovered an online lending resource, www.thesnaploan.com.  Based on my experience with this site, I was able to successfully acquire a start up loan for $100,000. 

What’s even better is that I was able to apply online, and I got my approval pretty fast, about two weeks. 

It sounds like this website could be right up your alley. 

The website would work if my scores didn`t have to be a 675. I found that site on craigslist about a couple months ago.

Due to my many years in PC sales/service, I still find myself buying, selling and repairing/upgrading PC as a sideline. As this industry has always been, the profit is in the service not the hardware. The last PC I sold locally went to a client who was headed to WM to buy the special. I sold him a used (referb) for $125 more than what he could have bought new for. Why did he buy? Simple he wanted my service. I build a bullet proof system w/ pushbutton restore.

What I am saying is let your local customers finance your inventory. Sell up your services and get pre-paid on orders.

PM me for details on selling a service that PC owners want & need.


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