What to do when the "Boot" is bigger than the "Strap"

bosscc2003bosscc2003 Posts: 1subscriber
edited July 2009 in Startup Funding
Hello everyone,
Thanks for taking the time to read my post, I`ll cut to the chase. Here is how the financial breakdown looks to fund my seed company:$1-1.2 million for land and buildings (debt financing)$500,000-750,000 for everything else (equity financing)  So, my question is, what do you do when A.) the cost to create the business exceeds any possible bootstrap amount that we could put together, B.) there is no way to work around how much is needed, it is what it is, C.) we have a mixture of financing needs and D.) are creating this business in an industry with very high growth, but virtually no demographic information available (believe me, I`m baffled at how little information is out there, I`ve spent 6 months looking and can`t even find local demographics). What concerns us is that aside from needing $500,000-750,000 cash just to open the doors, we don`t know if we can find a bank that will finance the land AND the buildings, which will have to be built new. While there are other concerns, this is the primary one and any information or advice would be helpful and greatly appreciated. Best of luck to everyone, thanks so much.PS - I have owned a business for the last 8 years, so I`m not completely oblivious to how businesses work. bosscc20037/16/2009 10:03 AM

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    From your post, I gather that approximately $2 million is required to get everything accomplished and open. Since real estate and construction is involved, your capital solution will likely include a combination of funding methods.  In general, it`s easier to accomplish if the founders are contributing some cash to the situation- however, other "strategies" may be possible depending upon the specific circumstances.
    If you`d like to discuss your situation (in confidence) send me a PM or contact me directly.
     
     
     
Sign In or Register to comment.