Forums: Discussions for entrepreneurs and small business.

I have a business idea to start a local youth center in the area.  There will be membership fees, but there will also be a daycare center in the facility that will generate most of the revenue.  The area does not have any competition and therefore no where for the youth to get off the street.  The area is between Trenton, NJ and Philadelphia, PA so the area is getting increasingly bad and the youth has no where to hang out but on the streets.  They cannot even go to the mall anymore unless they are with an adult.

There is an empty building in the area that used to be a grocery store that is in the center of town and easily accessible for all of the teens in the area, but it is currently for sale for 3M.  It would also have to be renevated to use as a youth center.

I have done a market analysis and the business would be profitable, but I am stuck at where to go for funding since I obviously do not have 5M worth of assets to secure a loan.

Any ideas on where to go?  Is it even possible to be successful in getting a start up funding for that large of an amount for a business that isn't technology or can't grow exponentially?

Thanks in advance for any help you can provide.

robyn

Your project, while providing terrific social value, may be difficult to finance using traditional methods. The monthly payment on a $4 million dollar loan will be more than $30,000. This might be difficult to service from the child care revenue.  (a detailed set of financials will determine this)

You seem to have two sets of "customers" (day care and youth center). Will the location be convenient for both?

Although funding for this project, as conceived, may be possible, you may need to amend your business model somewhat or take a different approach.

The youth center project would probably benefit from having support of the "community" , so building your constituency will be key.

 

I hope this helps. If you'd like to discuss the specifics of your situation, feel free to contact me directly.

 

 

 

 

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

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