Forums: Discussions for entrepreneurs and small business.

I have a business plan written to serve a consumer community that spent $13.9 billion last year, but is completely underserved.   I am a female entrepreneur who is currently employed, but believes that in order to do the job right, needs to dedicate 100% of my time to making it happen.  I have an excellent credit rating and some investments, but am not interested in using my home as collateral.

Investments in technology are key. 

First year funding looks to be somewhere in the $250k - $500k range.  What are my best options?  Thanks!

Hi there. Sounds like you’re in an excellent position to start your own business. While it’s true that you’ll likely be able to further your business concept much faster if you dedicate 100% of your time and efforts to it, I’d think twice before giving up a good paying job these days.

Naturally, you’re reluctant to use your home as collateral; however, if you quit your job, you may just do that, even if you don’t take out a second mortgage.

With that being said, you shouldn’t look at your capital requirements on an annual basis. Try to project everything over at least 3-5 years and factor at least 3-6 months worth of operating expenses (including your salary) into your overall capital requirements. Where do you stand then?

The $250,000-$500,000 area is somewhat difficult to evaluate. The amount is usually too small to raise equity financing and pretty substantial if you intend to raise that amount based on debt.

If you are interested in discussing your project in greater detail, please send me a PM and I will try to give you a few additional pointers.

I hope this helps.

Mark

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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

travelphile915,

I concur with mark's suggestion and would add that once you have identified the full capital requirements, you can look at the amounts needed to achieve the major milestones and see how that breaks out.

Getting some amount of capital -then using it to reach some significant milestone(s) will build creditability and increase the valuation of your company.

There are a number of ways to bring capital into a business and the first step toward success is to choose the one that is optimum for you and your business.

 

If you want to discuss your specific situation- feel free to drop me a PM or contact me directly.

 

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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

The problem you have (much like many new businesses) is that very few lenders will provide capital to new start up businesses.

Banks want three sources of repayment - 1) positive cash flow which you don't seem to have, 2) personal guarantee which would put your house at risk anyways and 3) collateral which you are not willing to provide.

Even non-banks lenders whatt to see strong credit and current positive cash flow.

Your only options would be to 1) scale back your business to the amount of funds that you can raise or 2) get out there and generate some business - then use that business (purchase orders, accounts receivables or credit card sales) as collateral to secure some working capital.

We list many options for businesses like your on our website - might be worth a look.

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Business Money Today
Small Business Loans & Start Up Loans

Hey travelphile915,

I'm doing the same at the moment. I've got a bigger website which earns me about $500 a month. Not enough to live, but enough to make it bigger. It is a community for product reviews like many others in the web.

I made the decision, that I will continue with my job. I'm a "safe" girlie, I would recomment it to you, too. If you save some money and work more yourselves, one day you'll be able to do it without credits or these Sh**.

Regards

Ecki