My wife and I are looking at starting our own business, and we don't know where to start

[KnoxRealtorVOL]

We are in the Knoxville area. Anyone who may have any experience or knowledge in this area would be much appreciated. Our business will require a store front and for a good deal of equipment to be ordered.

We just don't really know where to start. I went and spoke with my bank today and they said they don't offer start-up business loans, but who does?

It seems like the steps to take are:
-Find the space to lease
-Talk to a bank that will offer this type of loan
-Figure out how much you need the loan to be.

Am I in the ballpark? Or am I way off base here? I could really use some advice on where to start.

 

[robbymoore94]

You will need some sort of business plan that details what you are looking to do. What you are selling/making, costs/expenses, potential sales etc. The better idea a lender has of what you are attempting to do, the better they can formulate how risky your idea is.

 

[MAD]

We are in the Knoxville area. Anyone who may have any experience or knowledge in this area would be much appreciated. Our business will require a store front and for a good deal of equipment to be ordered.

We just don't really know where to start. I went and spoke with my bank today and they said they don't offer start-up business loans, but who does?

It seems like the steps to take are:
-Find the space to lease
-Talk to a bank that will offer this type of loan
-Figure out how much you need the loan to be.

Am I in the ballpark? Or am I way off base here? I could really use some advice on where to start.

Do you have a rich uncle?

 

[KnoxRealtorVOL]

You will need some sort of business plan that details what you are looking to do. What you are selling/making, costs/expenses, potential sales etc. The better idea a lender has of what you are attempting to do, the better they can formulate how risky your idea is.

Gotcha. So before I walk into whatever bank will offer this start up loan, I will need to have a really detailed plan in place, is what you're saying.

 

[KnoxRealtorVOL]

Do you have a rich uncle?

Nope

 

[VolunteerHillbilly]

link

 

[McDad]

Unlikely to get a loan for a start up small business. There is no collateral unless you own equipment outright. More likely to secure a LOC against an asset like your home.
Please evaluate the market for competition and need. How many others are already in the market? How long have they been there? What's their reputation? Where and how much do they advertise?
Commercial leases start at 3 years minimum (usually). Look at what is the best location and structure. Do you require a lot of foot traffic? Next to a main road for visibility? Will you need a lot of parking? Try to find a place with adequate signage and flexible rules on exterior signage to draw attention to your business.
Marketing, promotion, advertising. Do it everyday and do it longer than you think in necessary.
There are small business resources, like SCORE, utilize them.

Most businesses fail because they are undercapitalized.

 

[BigOrangeMojo]

What kind of business?

 

[Tri-CitiesVol]

We are in the Knoxville area. Anyone who may have any experience or knowledge in this area would be much appreciated. Our business will require a store front and for a good deal of equipment to be ordered.

We just don't really know where to start. I went and spoke with my bank today and they said they don't offer start-up business loans, but who does?

It seems like the steps to take are:
-Find the space to lease
-Talk to a bank that will offer this type of loan
-Figure out how much you need the loan to be.

Am I in the ballpark? Or am I way off base here? I could really use some advice on where to start.

@ButchPlz

 

[jaguinn5]

I just started a business last year. I was only able to get financing online and through family. Banks wouldn't do anything, even with a detailed business plan. I didn't have collateral and they wouldn't use my inventory as collateral. I wasn't even asking for much,but banks were just looking for reasons not to give business loans.

I don't know how much you need to borrow, but obtaining financing is your first step. It is WAY harder now than it used to be. My dad was floored that I couldn't just walk onto a bank and get handed money.

You still should absolutely make a business plan and market analysis, then go to banks and ask around. Go to several banks with it. It is a better option if you can get it, and you will learn a lot about the viability of what you want to do. If that doesn't work check out online loan options.

 

[ButchPlz]

We are in the Knoxville area. Anyone who may have any experience or knowledge in this area would be much appreciated. Our business will require a store front and for a good deal of equipment to be ordered.

We just don't really know where to start. I went and spoke with my bank today and they said they don't offer start-up business loans, but who does?

It seems like the steps to take are:
-Find the space to lease
-Talk to a bank that will offer this type of loan
-Figure out how much you need the loan to be.

Am I in the ballpark? Or am I way off base here? I could really use some advice on where to start.

@ButchPlz

McDad nailed it. It's going to be tough to get a loan as a start-up unless you're taking out something personal. We bought a 10-year-old existing business, but their financials were a mess and we couldn't get a bank to loan us what was a relatively small amount to buy it, so we ended up having to work out a payment plan contract directly with the old owner (which she violated repeatedly, so we then had to get lawyers involved and ended up paying a fraction of what we initially agreed upon).

As far as just getting ready to start the business, he's got all the rest nailed down too. Do your legwork. Frankly don't expect to recoup much in the first year or two. Realize it's going to be a bit to really make money especially with all the investment you indicate you'll be making. It's worth it usually to be your own boss but unless you've really got an angel around you it's going to be hard to get that start-up cash.

 

[GVF]

We are in the Knoxville area. Anyone who may have any experience or knowledge in this area would be much appreciated. Our business will require a store front and for a good deal of equipment to be ordered.

We just don't really know where to start. I went and spoke with my bank today and they said they don't offer start-up business loans, but who does?

It seems like the steps to take are:
-Find the space to lease
-Talk to a bank that will offer this type of loan
-Figure out how much you need the loan to be.

Am I in the ballpark? Or am I way off base here? I could really use some advice on where to start.

A well thought out, well presented and detailed business plan. Look one up or get some help. It ain't a car loan. Prob need to do some google work for small business lenders. Should also look at LLC, or something for tax purposes. I had a LLC for my rental houses, but didn't offer much personal protection when it went south and loans foreclosed. Took a bit to rebound from that. You will more than likely need to show some collateral or the ability to repay the loan if the business defaults. your only protection would be bankruptcy if the business fails. You do have to plan for worse, and work your butt off for hte best.

 

[GVF]

McDad nailed it. It's going to be tough to get a loan as a start-up unless you're taking out something personal. We bought a 10-year-old existing business, but their financials were a mess and we couldn't get a bank to loan us what was a relatively small amount to buy it, so we ended up having to work out a payment plan contract directly with the old owner (which she violated repeatedly, so we then had to get lawyers involved and ended up paying a fraction of what we initially agreed upon).

As far as just getting ready to start the business, he's got all the rest nailed down too. Do your legwork. Frankly don't expect to recoup much in the first year or two. Realize it's going to be a bit to really make money especially with all the investment you indicate you'll be making. It's worth it usually to be your own boss but unless you've really got an angel around you it's going to be hard to get that start-up cash.

Ditto. Even though you both want to go into this, I also suggest one maintains employment till it gets rolling to keep a tream of cash flow and benefits. It also looks better to the lender.

 

[GVF]

Also, if you have some edxtra cash, hire a local marketing firm to do a business analysis for you.

if you're thinking food business/diner type, also consider a well located food truck then move to brick and mortar down the road. You can get into a well furnished food truck for a fraction of the cost. And the ability to relocate it for maximum flow potential. You can go new or refurbished for $55K and up for a well stocked mobile kitchen, some even with small eating spaces on the roof, etc.

 

[ButchPlz]

Also, if you have some edxtra cash, hire a local marketing firm to do a business analysis for you.

if you're thinking food business/diner type, also consider a well located food truck then move to brick and mortar down the road. You can get into a well furnished food truck for a fraction of the cost. And the ability to relocate it for maximum flow potential. You can go new or refurbished for $55K and up for a well stocked mobile kitchen, some even with small eating spaces on the roof, etc.

Even if not a food business, figure out how lean you can start to have a viable product and grow from there. If you do that, you will be able to get the big loan a couple years down the line to get where you actually want to be.

Keep track of numbers, build a relationship with a bank, and have your long term vision down on paper and you'll be in good shape.

 

[GroverCleveland]

Do not personally guarantee a lease.
Look at SBA loans as a possibility.
Lot of good advice has been offered on here.

 

[txbo]

What type of equipment? I would think you could get a loan for tangible assets.