Forums: Discussions for entrepreneurs and small business.

OK, I am thinking 100k is a very hard amount to raise. 

I have looked at the figures and I can borrow 25k to get my retail store open.  Now this is a big gamble as I would not have any cushion if business is slow the first month (which I do not anticipate). 

With my salary I can sustain this for a short period if sales are not good.  My thought is I should take the risk...borrow the 25k and get the store open.  I mean if it doesn’t make it at 25k and getting the store open would it of made it with 100k to last a year?

What are your thoughts?  Would this be worth doing just to get my store open and making some money?

Roblue,

This will vary according to the specifics of the situation - which effect the actual and perceived risk. However, Venture Capital Firms (those that invest other peoples money) will usually want to "see" the potential for a ROI of 30-40% per year, with a shot at 50%.

Generally speaking, retail stores take some time to gain revenue momentum so you are putting more pressure for quick results. If you will be reducing the budget for marketing & promoting your store - that would also increase the risk.

Have you considered some test promotions to get people primed for your store opening?

Technically, capital comes in the form of debt, equity or grant. However, using a combination of sources and methods, we have identified over 50 ways to bring capital into a business. The “optimum” funding strategy for you (or anyone) will depend on your specific situation.

Send me a PM if you want to discuss details.

Roblue,

Thank you for your good words. I appreciate them and am glad to hear that you`ve found my "input" to be useful.

As to your question "Do any of these methods require little to no funds to incorporate" - there is a lot of "it depends" on several factors including:

1. How much capital is being sought
2. The "strategy"
3. The stage of the business
4.  What has already been done.

For example, almost every approach (except for personal borrowing) will require some form of business plan. Not necessarily a 60-page document but enough to provide the essential information.

A viable capital strategy should consider the resource limitations (both current and future) which sometimes means moving forward in steps and stages, so the resources are in "sync" with the objectives.