Business Start Up Loans
Discussion
Consider raising equity finance rather than debt finance. Debt is attractive to many first time enterpreneurs and business people because they think they're losing the upside and control of the business. However, very few sources would lend serious money to a complete start-up without some form of security. They would also expect regular repayments and can be very quick to foreclose if you experience repaying them. Equity on the other hand is not repaid immediately giving you more breathing room in those early days when cashflow can be tight. So consider angel investors, seed investors, and crowdsourcing the money. It may be difficult for a traditional small business to raise money this way but it's at least worth considering.
Zoon said:
Good scheme. Cheap loans and mentoring to boot. It has much merit.However, it's a palaver to get it with business plans, cashflow projections, presentations to boards etc. all required over a multi-week process. Your other option is to approach a commercial finance broker who will source a commercial lender for you at a higher rate but who will approve you if your credit is clean and if a homeowner gives a Personal Guarantee for the loan. Then you'll get the money with minimum fuss in a matter of days.
Good luck whatever you decide.
My experience with start-up funding was 'forget it' if you ask any of the high street banks (unless you are able to put up an asset as a guarantee) I only managed to get bank lending after 18 months of trading.
Either seek an investor, save the money yourself or borrow from friends/family.
Either seek an investor, save the money yourself or borrow from friends/family.
kev1387 said:
About 40k looking to raise
Serious question - why so much cash? I'm guessing that's the cost of buying equipment to fit out premises and the consequent rent/rates/utility charges for 12 months.Could you get started with NO equipment or premises at all? I'm thinking either,
- Organise some sort of running/exercise club which meets at a local park, or
- Rent somebody else's gym and run some classes in it.
To my mind the success/failure issue in the business is going to be whether you have the right inter-personal skills to bring the punters in and keep them coming. It might be a good idea to test that out before getting into the capital expenditure and premises commitments. I'm concerned the big initial spend and commitment might turn out to be a millstone around your neck. You need to crunch the numbers sufficiently to understand how much income per hour you need each and every week to pay all those expenses and give yourself a living on top, let alone the impact of taking on any employees.
I suspect you will need a LOT of customers to make this thing fly.
Ozzie Osmond said:
Serious question - why so much cash? I'm guessing that's the cost of buying equipment to fit out premises and the consequent rent/rates/utility charges for 12 months.
Could you get started with NO equipment or premises at all? I'm thinking either,
To my mind the success/failure issue in the business is going to be whether you have the right inter-personal skills to bring the punters in and keep them coming. It might be a good idea to test that out before getting into the capital expenditure and premises commitments. I'm concerned the big initial spend and commitment might turn out to be a millstone around your neck. You need to crunch the numbers sufficiently to understand how much income per hour you need each and every week to pay all those expenses and give yourself a living on top, let alone the impact of taking on any employees.
I suspect you will need a LOT of customers to make this thing fly.
What Ozzie says above:Could you get started with NO equipment or premises at all? I'm thinking either,
- Organise some sort of running/exercise club which meets at a local park, or
- Rent somebody else's gym and run some classes in it.
To my mind the success/failure issue in the business is going to be whether you have the right inter-personal skills to bring the punters in and keep them coming. It might be a good idea to test that out before getting into the capital expenditure and premises commitments. I'm concerned the big initial spend and commitment might turn out to be a millstone around your neck. You need to crunch the numbers sufficiently to understand how much income per hour you need each and every week to pay all those expenses and give yourself a living on top, let alone the impact of taking on any employees.
I suspect you will need a LOT of customers to make this thing fly.
Why not start with personal training off-site to raise the money. You are going to struggle with bank lending, you have dismissed the government lending so you are left with private equity or crowd funding. Or nothing. I would look at the other options, if I was you.
I was (initially) prepared to put up some capital myself (in return for personal training - as you are only down the road from me), but would not sink £1 (let alone £40k) into a business with someone who does not even respond to or monitor their own questions (to people who you asked for free help).
Big turn off for me financially. I wish you all the best though.
Julian
JulianPH said:
What Ozzie says above:
Why not start with personal training off-site to raise the money. You are going to struggle with bank lending, you have dismissed the government lending so you are left with private equity or crowd funding. Or nothing. I would look at the other options, if I was you.
I was (initially) prepared to put up some capital myself (in return for personal training - as you are only down the road from me), but would not sink £1 (let alone £40k) into a business with someone who does not even respond to or monitor their own questions (to people who you asked for free help).
Big turn off for me financially. I wish you all the best though.
Julian
Julian!!
There is no need to be like that!!!
This is suppose to be a friendly forum and stupid comments like yours regarding WHY I haven't responded to the comments that have been made by yourself or other members are totally out of order!
Clearly you can't be bothered to find out the facts 1ST, as to why its taken me this long to respond!! I suggest in future you find the facts out 1st before you make a stupid comment like you have put!
If you must know as to why its taken me this long to respond, when i initially wrote this post i was in Spain on holiday, and half way through hols had wallet & phone stolen! Didn't take lap top or iPad with me either, as thought wouldn't need them. How wrong i was.
Only got back to the UK today and then had the pleasure in reading your silly comment!
Think before you write in future Julian!!
Kev
Why not start with personal training off-site to raise the money. You are going to struggle with bank lending, you have dismissed the government lending so you are left with private equity or crowd funding. Or nothing. I would look at the other options, if I was you.
I was (initially) prepared to put up some capital myself (in return for personal training - as you are only down the road from me), but would not sink £1 (let alone £40k) into a business with someone who does not even respond to or monitor their own questions (to people who you asked for free help).
Big turn off for me financially. I wish you all the best though.
Julian
Julian!!
There is no need to be like that!!!
This is suppose to be a friendly forum and stupid comments like yours regarding WHY I haven't responded to the comments that have been made by yourself or other members are totally out of order!
Clearly you can't be bothered to find out the facts 1ST, as to why its taken me this long to respond!! I suggest in future you find the facts out 1st before you make a stupid comment like you have put!
If you must know as to why its taken me this long to respond, when i initially wrote this post i was in Spain on holiday, and half way through hols had wallet & phone stolen! Didn't take lap top or iPad with me either, as thought wouldn't need them. How wrong i was.
Only got back to the UK today and then had the pleasure in reading your silly comment!
Think before you write in future Julian!!
Kev
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