Forums: Discussions for entrepreneurs and small business.

I`m opening a retail store next month through my business after more than 2 years of marketing and building websites for other retail stores and small businesses.  I have retail space, computers, point of sale terminal, display fixtures and shelves, and some product inventory.  I need to purchase additional product inventory and have enough cash left to replenish my stock before items sell out.  Any ideas on where to go for funding within 1-2 weeks?

 

Here`s what I have going for me.  I already have most of what I need for the grand opening.  My products will fill a currently unmet demand and is so unique, it is all but guaranteed to be featured on the local news.  Our goal is to be featured on the national news.  Even if that doesn`t happen, we have a series of humorous videos prepared for distribution in a large scale grass roots campaign.  I have a 15 page business plan that explains the marketing plan in greater detail.

 

Here`s my problem.  Banks look at past performance more than they do a future business plan.  My tax records don`t show much business income because I was employed by someone else at the same time as I was consulting through my business.  Also my credit report shows a higher debt ratio than banks would like to see with a credit score in the mid 640`s.  I am currently wading through paperwork for a couple of banks but I`m wondering if there is a better way to obtain short term financing.  The overhead is cheap.  We expect a profit by the end of December.  Should I try to explain this to banks or should I seek funding elsewhere?

 

Thanks,

Tim

Tim,

Have you tried a personal line of credit, secured, unsecured?

 

Erin

 

Ok, I was a little too vague in my initial post.  It`s not so much the product that`s unique as it is the concept of the store.  We will be selling toys that are not bound with twist ties and rubber bands inside plastic packaging that scissors can hardly get through.  On top of that, most toys are painted with vegetable dyes and all are tested in store for unsafe levels of lead paint.  Toys are not a unique item, but unfortunately toys with easy to open packaging with no lead paint are becoming rare.  We will be the first store to specialize in this way.

 

Our current inventory is quite low and we don`t have anywhere near the selection we should have.  Toy stores need to be fully stocked in November and December for holiday sales which is why I asked about finding a good source of short (or long) term funding.  Can I use a cosigner with an 800 credit score to improve my chances of getting a loan?

Hi Tim:

 

You may want to try Fundraiser 1.0.  A major retailer needed to raise funds before their grand opening. Using this program they were able to raise $92,687 in less than 90 days. I used the program to earn enough to pay for my Online Travel Website. For more information email me at dsyeary@yahoo.com