Questions regarding loans in starting a new business

Discussion in 'General Business' started by Twi$ted, Aug 22, 2009.

  1. #1
    Hello, I have a full out business plan ready to open up a Coffee Shop in a town that does not have one yet! I was thinking, what is a better business to start right now?

    Anyways my main concern is getting funding for such a venture. My problems are the fact that I have no investment money at hand, and also don't have the best credit.

    So here's my main question(s). If I have a sound business plan including marketing information and demographics and financial needs and future profits all put together and I can put together a decent talk with potential investors, would someone invest the likes of me?

    Where could I go to find someone to invest or give out a loan for something like this?
    *Note I'm also only 20 years old, and I'm not sure if the age has a liability factor or not when involving big loans.

    Any help with these questions would be deeply appreciated.
    Thanks
    -Jesse
     
    Twi$ted, Aug 22, 2009 IP
  2. mjewel

    mjewel Prominent Member

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    #2
    Your only real chance of getting any funding would be through friends or family members. While a business plan is necessary, what is important is actual experience and/or your willingness to invest your own money - without either of those, getting traditional funding is going to be, for all practical purposes, impossible.
     
    mjewel, Aug 22, 2009 IP
  3. mentos

    mentos Prominent Member

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    #3
    Last time i work this way.
    But nowadays many bank very strict on approving loan.
    They will only approved those business ALREADY earned money not those claim that the business POTENTIAL to earn money.
     
    mentos, Aug 22, 2009 IP
  4. kalseo

    kalseo Active Member

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    #4
    I agree with Mentos!

    Try to invest about a $100 in venture capital search networks and it is possible to get funds. A friend of mine got about $200,000 in a similar way.
     
    kalseo, Aug 22, 2009 IP
  5. magda

    magda Notable Member

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    #5
    There may be some schemes through local or central government where you are, to help with start-ups - depends on a million different factors, but worth looking into.
     
    Last edited: Aug 23, 2009
    magda, Aug 23, 2009 IP
  6. woodley

    woodley Active Member

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    #6
    woodley, Aug 23, 2009 IP
  7. bigtime2

    bigtime2 Peon

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    #7
    You can try one of those lending clubs, online, where random people invest money and you pay them back. Lendingclub.com is one of them.

    Another thing you can do is get two jobs now, save ups some money so you can have it when you go to the bank to ask for a loan. Banks nowadays are not giving loans easily, especially if you are not investing any of your money, at least this is in the US.
     
    bigtime2, Aug 23, 2009 IP