Question for business owners

[Nubbs]

How and where did you come up with the money to start your own business? Is there a certain percentage of "down payment" needed to get loans? I'm not very knowledgeable in this area.
Thanks
Nubbs

[OutCole'd]

Saved, Begged, Borrowed & Stole.
To get any kind of SBA loan, I believe you need at least two years experience in the industry you are going in. And it is tough enough to start out, let alone some kind of loan repayment.

[Mandelon]

Depends on what kind of business you are talking about. Typically you need some collateral to get a loan. Home equity line perhaps???

[BIGTYME]

i tried checking into this. i think many places want 30% down, I could be wrong althought its never happened:D

[NastyOne]

The bank of Grandpa.:D

[jerry billet]

depends entirely on the business, Can you work from home or small office? Do you need equipment. How about funding your receivables.
Three times I have started or been involved with start up trucking co. Sold out twice. This third one I intend to sell in the future too, I don't want to work forever.
Relied on parents and home mortgage for cash. This last one we used 401 monies on also.
Good luck
Jerry

[sleekster]

save and saved just be sure to incorporate and NEVER sign any document in your own name always as officer of the corporation especially things like leases and supplies, utilities etc. that way your only liability what money the corporation has when that is gone thats the end of it, no matter what t he company owes. also it is a good idea to have your wife or a family member on the payroll that way you will have a steady income. payroll must be made first then bills and then if any left over you.

[KrazyKa]

Originally posted by sleekster
save and saved just be sure to incorporate and NEVER sign any document in your own name always as officer of the corporation especially things like leases and supplies, utilities etc. that way your only liability what money the corporation has when that is gone thats the end of it, no matter what t he company owes.
Unless the corporation has built a credit history itself, this no longer works. That game has been played out and everyone who does business with a corp now requires a personal guarantee.
I have started a few businesses. Best way is to save and/or cash out your investments. Another is to take in investors, just make sure you always control 51% of the company. Getting a straight loan from a conventional lending institution is a royal PITA, if possible at all.

[Mandelon]

I hafta agree with that. When I started out I did incorporate (C-corp) to protect me and my assets from creditors. But I had to personally guarantee every credit card or lease personally or else they would not do it. Loans were at high rates so I just squeaked along.
Been 9 years on my own. Now I get loan offers weekly and the landlord finally took my name off the lease. Had good times and lean times but never missed payroll for the workers.
What kind of business are you trying to start up? Don't tell me you will be making boats.....:rolleyes: :D

[Froggystyle]

Originally posted by Mandelon
Don't tell me you will be making boats.....:rolleyes: :D
Yeah, just what the world needs, another boat builder... :rolleyes: :p

[HOOTER SLED-]

Aren't there some sorts of grants available also?? Free money is always good. I'm sure there is, you just gotta do the research. All too often there are grant programs(not just to start businesses) out there that people don't really know about. So there is alot of unused free money out there that no one gets. I did this for school. There is usually qualifications to be met to be able to obtain these grants. And the process to get them usually takes awhile, but with a little persistence, it would be worth it. There are also some of these available in certain cities for the purchase of a home too. Do the homework, or win the Lottery. :D
HOOTER

[Nubbs]

Originally posted by Mandelon
What kind of business are you trying to start up? Don't tell me you will be making boats.....:rolleyes: :D
Don't worry, I ain't gonna be making boats,............just jet skis and sea doos.:eek!: J/K Not sure yet, I'm just wondering if it's at all possible. I've worked for two different companies since I graduated college and I'm starting to think that working for somebody else isn't for me. I can't stand the a$$ kissing and corporate bullsh*t that goes on. I also don't like the fact that my reward (salary) is based upon what somebody else thinks of my performance. Especially when that somebody doesn't realize all that I do. The owner of the company once told me "One man's ceilings are another man's floors and there are no floors here". Boy was I stupid to believe that. I also feel that I'm capable of so much more than just being a money making tool for some rich dumbsh*t. I want to control my own opportunities, not have my opportunities limited by others.
Sorry for the long post, I'll quite whining now.
Thanks for all the info too.
Nubbs

[Dave C]

If you can start your business "on the side" then you can build it yourself without much input from anyone else.
If not good luck "finding" money.

[superdave013]

Originally posted by Dave C
If you can start your business "on the side" then you can build it yourself without much input from anyone else.
If not good luck "finding" money.
That's what I've been doing. It's moving along pretty well too.

[Nubbs]

Originally posted by superdave013
That's what I've been doing. It's moving along pretty well too.
Finding money, or business on the side?:D If you can tell me your secret, I'd like to find some money too.

[NashvilleBound]

Originally posted by Nubbs
Don't worry, I ain't gonna be making boats,............just jet skis and sea doos.:eek!: J/K Not sure yet, I'm just wondering if it's at all possible. I've worked for two different companies since I graduated college and I'm starting to think that working for somebody else isn't for me. I can't stand the a$$ kissing and corporate bullsh*t that goes on. I also don't like the fact that my reward (salary) is based upon what somebody else thinks of my performance. Especially when that somebody doesn't realize all that I do. The owner of the company once told me "One man's ceilings are another man's floors and there are no floors here". Boy was I stupid to believe that. I also feel that I'm capable of so much more than just being a money making tool for some rich dumbsh*t. I want to control my own opportunities, not have my opportunities limited by others.
Sorry for the long post, I'll quite whining now.
Thanks for all the info too.
Nubbs
Hey Nubbs....I am still unclear of what you are trying to pursue. If you dont want to post it PM me and let me know whats up......
NB

[Nubbs]

NB,
I'm not 100% sure yet. I've still got to save some more money before I get real serious. I'm interested in a dairy though. I've also got to move out of California too. I'm just trying to find out as much information as I can.
Nubbs

[superdave013]

Originally posted by Nubbs
Finding money, or business on the side?:D If you can tell me your secret, I'd like to find some money too.
Business on the side. I work most of the time until 10:30 / 11:00 at night doing something. Work hard, treat people right and the money will come in.
At the last Long Beach high performance swapmeet I was up at 3:00 AM to be sure I was in line before 4:00. My friend (who makes bitchen stuff) didn't go. Let's just say I "found some money" that day and he didn't.
The best thing about a side biz is I can live off of it and bank my checks from work. That way when I make the big jump to do this full time I'll have the scratch to get moving.

[Mandelon]

Don't think owning your own business ends the ass kissing. You just get a whole different set of asses to kiss.
If you can buy an existing business the current owner often will take terms. As in, so much down, so much a month for a few years with a balloon payment in 5 years. They agree to stay on a few months to make sure you get it....
Many businesses are available for sale this way.

[Nubbs]

Originally posted by Mandelon
Don't think owning your own business ends the ass kissing. You just get a whole different set of asses to kiss.
Yeah, I know.

[OutCole'd]

Nubbs, If you are serious about owning your own business, the best recomendation I could give would be to go out & read a book called " The E Myth". The best thing I have done for my business. Sets in a dose of reality.
Good Luck.

[clownpuncher]

For the last 20 years or so I've been a fireman. During this whole time I've also had several of my own businesses that I ran on my days off. (explains the graying hair)
My starting capitol was generated by anything from savings to borrowing from family. I've even had a friend insist that he co-sign for rather large line of credit for me, which we took him up on. Use your resources and imagination, but, be VERY cautious about getting in over your head at the start-up. Sometimes money is TOO easy to get and if the business doesn't succeed you could be stuck with a huge bill and a bruised ego. The difference is the damaged ego can heel quickly. Either way you go, GOOD LUCk to ya. You never said what you might be getting into. Is it a secret?;) :D :D

[Nubbs]

Originally posted by Nubbs
NB,
I'm not 100% sure yet. I've still got to save some more money before I get real serious. I'm interested in a dairy though. I've also got to move out of California too. I'm just trying to find out as much information as I can.
Nubbs
Clownpuncher,
I posted this earlier and didn't feel like retyping it. No secrets, I'm just not 100% sure yet.
Nubbs

[THE VIKING]

I startet my painting-thing up with 1000 bucks, an old pickup, a long credit at the paint store, and a reputation to be an excellent craftsman. Besides the hard work that is.
So common sence, hard work, is sometimes as good as money.
A year ago i found a house that i wanted to chabnge into a couple of apartments, i called the bank and asked " can i borrow 120000 dollars from you to buy a house, and then rent the apartments to someone"????
Is it a good deal?? she asked, "yes" i replyed, "then buy it, the money will be ready tomorrow".
So a good reputation is money worth too.
Good luck

[Sherpa]

I started a landscaping business after the property mangement
company that leased the house next to mine decided the fence
I just built was very nice. I went from 2-3 homes just doing lawns
and maintence, to pool decks, driveways, full-on concrete jobs.
mind you, my experience was from the age of 9 mowing lawns
and stuff.
I bought my equipment as I could afford, and the "new" jobs
required.
I have always had a fulltime job. My "real" job allows alot of
time off, since we work a compressed shift of 3-on, and 4-off,
then 4-on, and 3-off. 12hr day.
I got to where I was working 7 days a week. the wife didn't
like that at all. all my funds went right back into the "company"
in the form of new tools, etc.
I've gotten almost completely away from lawns now. (too many
asians doing full maint for -60 per house now.....
I'd say to start your business on the side. TRY TO NOT BORROW
ANY MONEY................ RE-invest into your company with as much
as possible......
I figure it this way. I can buy almost any tool I want, and it's
tax deductable thru depreciation.... So, by the time I want to
retire, I'll have a full-on machine shop/welding shop to be able
to do almost anything a shop could want to do.....
--Sherpa

[Cas]

Next year will be my 25th year in business as a general contractor doing mostly remodels, repairs and small additions.
I started out like many have suggested by doing work on the side and the most important thing, making contacts. By the time I started my own business, I already had many realtors I was doing work for. There was hardly any kind of transition going from being an employee to an employer.
Back in 1995, I started a golf ball business on the side with a Network Marketing company. It started working out real well until the company sold out to a bigger company just as I was bringing in $800.00 a month. I moved on to another golf network marketing company with a few more items. Within a year I was bringing in about $1400.00 a month until that company also sold out to a larger one. Both of them were done on the internet from home.
It was fun while it lasted but I hated the fact I really didn't have control over what I was doing. Funny thing about the latter, my first check was for $.78
The biggest suggestion I can make is find something that can bring you a decent return on the smallest amount of money. Maybe find something out of what you really want to do to make some extra cash. There are no guarantees that any business will succeed. Not saying what I did with the MLM's is the way to go but I didn't have any real money invested yet I got a real good return.
Oh, before anyone slams the MLM stuff, I hate most of them too! :D
There's a ton more to all this but this post is already too long.

[Flying Tiger]

Originally posted by KrazyKa
Unless the corporation has built a credit history itself, this no longer works. That game has been played out and everyone who does business with a corp now requires a personal guarantee.
I have started a few businesses. Best way is to save and/or cash out your investments. Another is to take in investors, just make sure you always control 51% of the company. Getting a straight loan from a conventional lending institution is a royal PITA, if possible at all.
A good example is the Chuy's restaurant chain. The largest purchaser of "on sale" tequila in the US (pronounced: To-kill-ya).
A few locations are franchised, a couple privately owned, but over 40 of them are each 51% owned by the founder Mark Evanston. The other 49% of each location owned by the person who supplied the cash.
He started out renting a long abandoned and beat up A&W rootbeer "trailer/patio cover/parking lot" in Moorpark Calif.
He stole the idea from a successfull chain in Mexico and Texas.
He got several people to invest, it took off, and it eventually ended up in court, each investor getting their own location, Mark keeping the rights to everything else and the original location in Moorpark.
The other locations the investors won in court have all since folded.
Prior to being successful with his Chuys chain, he tried other restaurant adventures and always failed, and was sued by those who invested.
He tried to imitate the Longbar in TJ, and several others,, always ending up broke.
But the Chuys chain took off, and dozens of lawsuits later, he's a multi millionaire.
Lake Havasu would be a good location for a Chuy's franchise. Not a 51/49 % split with Mark, but an outright ownership. I think in the long run, you'd have to own the dirt under the business to really pull away and make it.
It's a proven idea, and that's a good first step in securing a loan.
But, like KrazyKa mentioned, securing money is a new game in todays biz world.
I got my start in the Air Conditioning/refer biz when the owner of the FatBurger chain told me I was his best service guy, and should go into biz myself.
He said "Ya only need 7 regular customers to make it".
I don't know where he came up with that number, but he was right and my business took off.
I pretty much gave up residential service decades ago (except for friends or longtime customers), and moved into big ticket 200 ton and above locations where the money is bigger (several bartenders depend on me for a living), and they don't grind you on the bill, and I have very little competition.