Financing a new business venture
Discussion
Hello all,
I'm currently researching the potential for a new retail venture and, as my business banking manager has cleared off early, thought I'd open this question up to the PH collective.
What are the chances of securing bank lending on a start-up cost of around £30,000 with a modest own investment of sub-£10,000? I know that's a "how long is a piece of string" question, but really just looking for the general consensus of how willing banks are to lend money to retail start-up's at the moment?
For the purpose of this question, you're safe in the knowledge that my business plan is shaping up to be very thorough (cash flow/break even forecasts, in-depth market research including focus groups, full cost analysis of rent, rates, shop fit-out, growth plan etc).
However, I don't have any experience of running a retail business. My experience is almost four years of running my own service-based business.
Am I onto a loser from the start in this current climate?
I'm currently researching the potential for a new retail venture and, as my business banking manager has cleared off early, thought I'd open this question up to the PH collective.
What are the chances of securing bank lending on a start-up cost of around £30,000 with a modest own investment of sub-£10,000? I know that's a "how long is a piece of string" question, but really just looking for the general consensus of how willing banks are to lend money to retail start-up's at the moment?
For the purpose of this question, you're safe in the knowledge that my business plan is shaping up to be very thorough (cash flow/break even forecasts, in-depth market research including focus groups, full cost analysis of rent, rates, shop fit-out, growth plan etc).
However, I don't have any experience of running a retail business. My experience is almost four years of running my own service-based business.
Am I onto a loser from the start in this current climate?
Business Link, Regional Development Agencies, Chamber of Commerce.
There are loads of grants available for startups - but does depend what region you're in.
And revelation from an accountant friend today - he has found that the best loans available at the minute are from HMRC - just don't pay VAT, PAYE or NI and agree a payment plan over three or four years (he's got a couple of clients running at 2% interest) - obviously not my professional advice, but might be of interest to the self-employed out there.
There are loads of grants available for startups - but does depend what region you're in.
And revelation from an accountant friend today - he has found that the best loans available at the minute are from HMRC - just don't pay VAT, PAYE or NI and agree a payment plan over three or four years (he's got a couple of clients running at 2% interest) - obviously not my professional advice, but might be of interest to the self-employed out there.
Very interesting - thanks for all your comments chaps - some good food for thought there!
And, yes, I want to retain all the equity in the business, although if I find an investor I think I can work with I might consider it. My last business partner was a bit of a nightmare, so ideally I really want to keep this one all to myself.
And, yes, I want to retain all the equity in the business, although if I find an investor I think I can work with I might consider it. My last business partner was a bit of a nightmare, so ideally I really want to keep this one all to myself.
Couldn't you look at reducing your start up cash requirement? A £30k loan has got to be a big anchor to drag along for the first years of a retail outlet, especially if you're leasing a shop.. If most of that's for "start up" costs such as shop fitting etc I'd look to cut back - there's a few very nice shops in this town with nothing in them but a pile of bills shoved through the letterbox. SOR on stock? Start off small? Markets are good for getting going (obviously not for designer clothes, or at least real ones) - I'm thinking about going for the shows as a part time "get started" retail business.
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