WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

150% funding achieved under new startup plan

MattTurpinMattTurpin subscriber Posts: 22
edited June 2009 in Startup Funding
I`m just posting to give some great news, and a lot of it aught be credited to the minds here. Bootstrapping - I didn`t think it was possible for a cafe, but it is. Here`s the deal: I`ve been preapproved for 75,000 by unsecuredsolutions.com. I`m not going to open a building cafe to start. I was talking to my consultants and they had mentioned the profitability of cafe carts, esp when located in hospitals. The startup cost for a cart is 25,000. I cut that down a bit by having some good networking and finding old highschool friends on facebook and such, who work in the depts I need, like graphic design and logo/sign work. We`re going to open two carts, self employed. I`ll still own the company as it`s my name on the loan. I`ve got a few thousand to cut the loan a bit. We`ll have two carts and 25,000 to spare. Then, when the carts bring in the profit, we can pool it to own a building outright. In the mean time, we`ll both be self employed and proud. Wow, I`m doing cartwheels right now. This years long daydream is going to happen. I`m going to shop banks for the best deal, but I know I have 75k if I need it. I also know I have 15k from the investor if we use that as well. I know I only need 50k total. The rest is safety net. I`ll be saving a fortune a year on employees alone. I seriously think that SUN will have another notch in its belt. Woo!!!
MattTurpin5/29/2009 11:39 AM

Comments

  • MattTurpinMattTurpin subscriber Posts: 22
    Yeah, they looked at my credit score (726 last I checked, can only be higher) and said, we`re looking to offer 25-75,000. So I`m figuring 50,000 from them. I`ve got two other banks to shop with. I`ve got the investor. I got the startup cost to somewhere between 20-25,000. If unsecured comes through on the high end of their figures, we don`t need the investor. If they come up low, I use my savings, and he takes out a loan. Ideally I`m sole owner, but I wouldn`t object to a 50/50 split just to make it happen.
  • MattTurpinMattTurpin subscriber Posts: 22
    I`m the good credit going into my operation, so I haven`t had to look for credit partners. Are you doing this business 100% solo? If not, maybe one of your partners can be your frontman for the operation. You`d have to be very careful how you arrange things, lest the loan acquirer become the owner of your company. That`s been my biggest concern since I went into the cafe idea. I had to ensure that I supplied more than anyone else, because ownership was dearly important to me. For a while I was getting worried when my contributions seemed to be becoming outpaced. Partner was looking at refinancing, partner had an investor of 15k, and my loan efforts weren`t coming to fruition. Fortunately, we only need the loan now, and I`ve got the loan, so my worries are over, but that was a real concern of mine. I want the pride and status of ownership as much as anything. I`m as materialistic as one can get.
Sign In or Register to comment.