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Options for startup

by sheldon829, Performer

  • Created: November 18, 2010, 9:20 am
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9 comments

  I need some advice on my options, if any, for getting about $6000 to start a business.  My plan is to sell a product to high school graduates for graduation.  I have the supplier set up through my families fireworks wholesaler, and the profit per unit will be about 300%, at $6 each.  Initial order for the product will be $5000 with the remainder allotted to marketing.  I've been to many of the local schools researching if this is going to sell and all the feedback seems pretty good.  I'm wanting to start off small this year and send out about 1000 maillots to the heads of project grad, and am figuring on a 4% return with orders.  So with 40 schools ordering an estimated average of 150 units, I am anticipating a first year profit of $18,000. 

  The problem is I just got laid off and my credit is a mess at 528.  I really don't want to go through family to do this as we don't have that kind of relationship.  With my credit issues is there any way I can find some sort of financial help to get this off the ground? 

 

 Thanks for any advice.

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Alexben | Window Shopper | 12/14/2011 - 7:01 am

Even you get any kind financial problem in your business get help with us. Best of luck
Professional Web Site: http://www.ukguaranteedpaydayloans.co.uk/

johnjames | Window Shopper | 7/27/2011 - 12:50 pm

The only thing that I can think of is to fix your credit first before you go into this business venture. I know you want to start now, but I think you will have peace of mind if your credit is in good standing before you start your business. I'm not saying that your business will fail, but of course there is that possibility. So for me, I would fix my credit first before I start my business. That's just my opinion. I hope it could help in a way.. Good luck and God bless. 
Professional Web Site: http://www.paydayadvanceuk.co.uk/

phanio | Contributor | 11/29/2010 - 10:55 am

I realize that your relationship with your family might be a bit rocky - but, if you can pay them back in a year and use the profits to get away from them - that would be your best (cheapest - fastest) option. With you credit in the toilet - you have very few options left. For only $6K - most business owners self finance via credit cards or personal loans. There are also peer-to-peer lending and micro credit loans that you would fit very well all expect for you low credit score. I would suggest, before you do anything else, is to work on fixing your credit. Bring that score up to around 670 and you will have many options open to you - plus, fix it now and it will not haunt you the next time you are trying to raise funds.
Professional Web Site: http://www.businessmoneytoday.com/

JimD | Former Moderator | 11/22/2010 - 6:37 am

That is a great point rickedwards, if you were to get some orders you could more easily get financing. You make have to bootstrap the mailing without any inventory. After you do one mail, you may have a better idea of what the return is. I have done mass mailings before and I have gotten around a less than 1% return. JimD

rickedwards | Window Shopper | 11/21/2010 - 4:52 am

re-reading this you'll be in a much stronger position if you already have the orders. Some will definitely finance it if you can show it's just a case of buying the product and repaying them in a month.
Professional Web Site: http://www.simplepayday.co.uk/

sheldon829 | Performer | 11/19/2010 - 7:11 am

Thanks for the link Jim.  The 300% might sound a little amitious but the markup on this product is the same as fireworks.  I'm buying each piece for $1.20 and selling them for $6.  So with the shipping, advertising and such I think 300% is right on target. 

JimD | Former Moderator | 11/19/2010 - 5:54 am

sheldon, Keeping your expectations in check are important when trying to find investors or get a loan. Having a 300% profit the first year is very ambitious. This may be something that you will need to financing yourself. Take a look at these article because they may help you Loans for Business Owners with Poor Credit Bootstrapping Your Business - Is It For You? JimD

rickedwards | Window Shopper | 11/18/2010 - 4:01 pm

So your outlay is gonna be $6000 and your getting a 300% profit up to $18000, you sound pretty confidant so why don't you want to borrow money from family?   If it's a certain as you say then what's the problem?

sheldon829 | Performer | 11/18/2010 - 7:09 pm

  Mainly because I want to get out of my families shadow and do this on my own.  The relationship is a little rocky also, regardless, they would help me if I asked I just am trying everything I can to not have to.   And I am pretty certain my numbers are right, actually I'm trying to keep my expectations low.  I would be quite suprised if there was only a 4% return on the 1000 mailers.  I just am tryin to keep my numbers modest.