Startup funding for Computer Shop

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Startup funding for Computer Shop

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rsauers

posts: 4

Oct 23, 2008 12:16 AM ET Quote Report Abuse

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I have been researching the possibility of opening a computer shop in Hagerstown, MD but need funding for startup. I have been working with computers for some time now all the way from small computer shops up to managing servers for the government. I currently reside in Arizona but am trying to move back to the east coast. My fiancee and daughter are already there and I have been searching for a job. It has always been a dream of mine to open a computer shop and I think that area is perfect for one as there is no retail based computer shop in that area.

The reason I am interested in the area is that within 30 minutes of Hagerstown there resides 100,000 or more people which could create a great market for new PCs, PC repair, and mobile service. I have been speaking with a commercial realtor in Hagerstown and the average price for rental is pretty inexpensive (I should know more later this week). When speaking with the realtor I stressed over and over again it would need to be in a location which has high traffic and is highly viewable as most computer shops fail because they are usually tucked away pretty well.

I am looking for guidance on obtaining $50,000 (maximum) for initial startup which would allow for retail space to be obtained, stock purchased, store setup and servers/PCs built for in store use. Any advice would be appreciated.

robertj

posts: 1458

Oct 23, 2008 11:29 AM ET Quote Report Abuse

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You don`t mention one, so first of all, I`d create a basic financial statement.

Step 2 - make a list of your specific startup expenses.

If the results of these steps define a feasible business - then:

Step 3, before you leave your current job (if you haven`t already) - I`d explore the possibilities for some type of debt funding to cover your startup costs.

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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

rsauers

posts: 4

Oct 23, 2008 1:06 PM ET Quote Report Abuse

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Thanks for the advice. I purchased a business plan writing software last night and spoke with out Small Business Advisor at work today. I am going to work on a business plan and get some more information together about startup costs (servers, financial management software, ect.).

I think my best bet to obtain any type of financing (if going with a loan) would be something which involved the SBA since my credit is sub par.

Is there anywhere to obtain statistics which could be used in a business plan which would help with showing the profitability of this business? Also, what would I be looking for? I know the potential market size is one (contained in my first post).

robertj

posts: 1458

Oct 23, 2008 1:25 PM ET Quote Report Abuse

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rsauers,

Good Going!

Before I went hunting for a lot of statistics - I`d put down some numbers and the related assumptions.

For example - what are your assumptions for

-your average sale

- average customer value (commonly called LTV- lifetime customer value)

Work up a sound estimate of your startup costs.

I`d put these numbers together before I started deciding what type of capital to seek and where to go for it.

Just curious - which software package did you choose?

rsauers

posts: 4

Oct 23, 2008 9:19 PM ET Quote Report Abuse

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Business Plan Pro. As for the LTZ, would that be a yearly estimate and for average sale would that include services or strictly selling product?

Today I have been working on getting all the startup costs together but I can definitely go back and remove some of the stuff which I put into the spreadsheet. I was going all out on trying to think of everything needed and probably have more than what is necessary computer wise (servers and such) to start out with. I am trying to undercut myself as much as possible and over estimate everything else as much as possible to see if I still come out on top with profits. So far so good.

I am going to talk with a gentleman from a company called Source on Saturday. They are pretty much advisors on starting a business. I want to get as much input from as many people as possible so I can take the ball and run with it. It`s tough to think of everything and then decide what is and is not needed right away.

rsauers

posts: 4

Nov 12, 2008 12:46 PM ET Quote Report Abuse

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Hello Mr. Thomas,

I have sent you an e-mail about your inquiry.

Thanks,

Randy

mrpaulthomas123

posts: 8

Dec 11, 2008 4:46 PM ET Quote Report Abuse

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Good day Randy,

I have been out of town for a business.......And I have a software problem on my computer which results to alot of data lost.

write on this email below......and give me full details of all your inquiries so far.

Hope to hear from you.

Mr. Paul Thomas

154 Deptford High Street
Deptford, London
SE8 3NU
United Kingdom

Call: +44 (0) 7024080980

Fax:+44 (0) 8704909305

Mr_paulthomas@yahoo.co.uk

KimberlyJones

posts: 44

Dec 31, 2010 9:08 PM ET Quote Report Abuse

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If I were to create a business plan along with the expenses needed to run the business. I would add up all costs like rent of the store, salary, bills etc and compare it against the sales numbers and profits from services and sales. Find information on the average sales numbers. Also a lot of people do not consider the interest you will have to pay on loan you take for the start up.

All the best

Kimberly

canon drivers

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BMT2010

posts: 126

Jan 04, 2011 10:48 AM ET Quote Report Abuse

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Startup funding is very hard to come by especially if you have bad credit or slow credit. Most lenders - like to see that you have your personal life together as well as some type of track record to repay their loan. You seem to not have either. Banks and lenders just want to get repaid - nothing else.

With what you state, your chances for a SBA loan is very slim. You might look into a Micro Loan (up to $35K for startups) but they will (if they can get around you credit) only start with about $10K.

Your best bet is to bootstrap - find friends or family to help you out, use personal credit cards and personal assets to secure loans.

You might even think about doing this part-time out of your house until you build your business up a bit. Do it in AZ to get a feel for it before moving.

I would also suggest you find a SCORE office in your area. They are free to us and can help you research your idea.

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Business Money Today
Small Business Loans & Start Up Loans

SandraF

posts: 2

Jan 06, 2011 6:00 AM ET Quote Report Abuse

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Well, of course, every business start-up is a certain risk, though, there is no success without risk, so, it's very important to try. Besides, success depends not on the luck but on the proper strategy and approach to business. If you really understand what you do and you are confident in your actions, then you will reach the desired results. So, don't be afraid and go ahead.

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Urgent money problems can be easily solved with the help of payday loans online with no credit check.

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