Forums: Discussions for entrepreneurs and small business.

I want to start a business that needs 25-50k startup capital. I am 2 years out of bankruptcy (480k worth of medical debt). I am looking to incorporate but have no idea how to start looking for the capital. Any suggestions?

The bankruptcy will have an impact on your ability to get a loan - especially if you have no (or very little) collateral to put up. If the past 2 years show a good payment history - that will be a positive.

The first step in determining your "optimum" funding strategy would be to develop a "basic" business plan including a set of basic financial projections.

 

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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

Thanks for the input. I have no reall credit other than a vehicle loan (10k) that is religiously ontime. I don`t know what my score is of late. I am starting a business plan as we speak. I do have a good picture of how this business will work (the service I will provide, and the vehicle for it). I do have two questions: 1.)

The end result of this company will be 48 contiguous states. Generally speaking, is it better to start locally and grow into that goal or actually jump into selling nationally? BTW, this is a commercial construction business (flooring). There is no infrastrucutre involved except to network sub-contractors in every region that I will be doing business.

2.)

I am partnering with my wife in this venture. She is as good a salesman as I and there are advantages in female ownership in being awarded gov`t contracts. Is the any funding available anymore for woman-owned start-ups?

Thanks,

J

J,

That`s great that you are starting on your plan. Initially, you don`t need to have a 40 page, 4 color plan - just cover the core basics.

As for your 2 questions:

1. Generally it takes less resources to develop a market locally - so that may be a good way to go.

2. There are still some programs around for women owned businesses. You may want to check with your local economic development entity as well as the SBA

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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

J,

Your situation sounds a lot more complicated than mine use to be.

When I was beating pavement trying to get my own personal home-based business off the ground and establish it as a real business, 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.

Considering your bankruptcy history, your experience with lending institutions may be even more negative than mine.

However, I did discover 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 event better is that I was able to apply online, and I got my approval pretty fast, about two weeks.

I`m not sure what your credit score is right now.  But you may have enough to use this online resource.

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

Sidney,

Thanks for your insight,as well. I feel that I probably would not get much help from lending instituions right now (I know my personal credit would hurt, not help), but I won`t need 100k startup capital either. I haven`t finished putting the numbers to paper, but I feel that between 30-50k will be ideal. I certainly don`t want to hinder profits with a big note to pay on every month.

On a side note:

I was thinking about the business I am in now. I am a residential flooring contractor, and have been for about 17 years, operating as a schedule C. About 2 years ago, my wife set up a DBA and I registered it with DNB. We NEVER used the name, we never obtained any credit with it. Can I "upgrade" a schedule C to an LLC or c-corp, and would that qualify as a "shelf" corporation?

Thanks Again,

J

J

I can truly sympathize with you as far as the credit or bad credit portion.

I too am in search of capital for my own business.  Right now, I am going about things the wrong way, and I am trying to find a resolution that will save my business as well.

As I see, my solution is to identify and acquire available capital.

I`m currently sustaining my business expenses with my personal credit cards, and I have been doing so for quite some time.

Currently, I have successfully maxed out each of my personal credit cards.

Because of this situation, I am trying to get a loan in an effort to pay off all my personal credit cards and then, hopefully, be able to establish a business line of credit.

However, I find that most banks view me as a considerable risk because of my maxed out credit cards, and each attempt I make to acquire a loan is denied.

I am not quite ready to give up on my business.  It is all I have.

I believe that by paying off my personal credit card balances I will take the noose of the neck of my business.

With a business line of credit, I will be able to allow my business an opportunity to stand on its own two feet.

Sometimes, as a business owners, we are made to believe that a resolution to our financial situation is impossible.

But keep researching J, and your resolution will be identified.

I have heard many say that there is life after bankruptcy.

It`s not easy, but there is life.

Keep researching!

There is always a way out of debt for a business. It might just take a little creativity and time to get you back above water.

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china business card / Wall Street Journal Reader

Along the lines of raising capital, does having a couple of contracts for my business services help me get a small line of credit or business loan.  My personal credit took a hit in the last year and has dropped inot the mid 500s.

But as I have stated I have two current contracts and am expecting a third within the next two weeks. Would a financial institution look favorbaly on them? CAn I use them as leverage to get a L.O.C. of $25,000.

 

Good luck with the hunt for capital. Do you have any family or friends that could help out. It seems like $25k is not much for family and friends to come up with - but sometimes it`s hard asking them for money.



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