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Yvonne
First Time Poster
Username: Yvonne
Post Number: 1
Registered: 03-2007
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, March 12, 2007 - 11:42 am: | 
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I'm new here. Just wondering if any of you are business owners who don't have good credit. How have you managed to get your business started?
Have you tried (and/or had success with) finding funds outside of banking institutions? Are you able to get terms/credit with vendors? Basically, I'm trying to get a dialogue going with other business owners. So feel free to share any of your experiences, whether related to money or not. |
Mzuri
"Cyniquian" Level Poster
Username: Mzuri
Post Number: 3912
Registered: 01-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, March 12, 2007 - 12:55 pm: |
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Good Morning Yvonne,
I am a business owner but I don't meet your criteria of "owners who don't have good credit." I'll disregard that part and respond anyway.
I was one of those little children with the lemonade stand and I've operated various businesses throughout my teenage years and have always had something going, even while working full time at a regular job. Currently I operate my businesses full time, from the comfort and privacy of my home office (or bedroom), and one of my major ventures is an online furniture business. It is fun and rewarding but it requires quite a bit of WORK!!! Most of the work is accomplished online - web design work, answering e-mail inquiries from customers, corresponding with suppliers, tracking shipments, etc.
Fortunately I have excellent credit but I don't operate on credit terms with any of my suppliers. I prefer to deal in cash and all my orders are paid upfront.
Credit = Trust and when you're in business (or if you intend to go into business) you need to be trustworthy. Trust is the number one factor in establishing
Customers - Your goal (presumably) is for people to remit their funds to obtain your products and/or services. They're not going to do that if they don't trust you. Put yourself in your customers' shoes - would you give your money to someone you don't trust?
Suppliers - Manufacturers, distributors, jobbers, etc. aren't going to "front" you product if they don't think you're going to pay. When establishing these business relationships you are usually required to provide trade references as well as bank account information. If credit terms are required, they are going to do a credit check.
Banks - Loan officers aren't going to lend you money to start a business just because you have a brilliant idea. Credit history is an important factor in securing bank loans, as well as collateral, business tenure, and other factors which escape me.
People - In general aren't going to deal with you if you don't keep your word.
Can you start a business without much capital? Yes. Can you start a big business without much capital? Maybe. If I didn't have much capital to start a business, I would start out small and parlay my money to expand gradually.
And the motto for that would be: It's better to have a small success than a big failure.
This concludes Mzuri's Business 101.
Any questions? Please ask 
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Abm
"Cyniquian" Level Poster
Username: Abm
Post Number: 8758
Registered: 04-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, March 12, 2007 - 01:25 pm: |
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Yvonne,
First of all, before you worry about getting money, you need to determine how MUCH money you need to effectively start and maintain your business for at least, say, 6 months (assuming by that point the business will be able to generate enuff cash to sustain itself).
So you should prepare a budget that will efficiently but effectively allow you to get started. That will include what you need to invest, what you front expenses/expenditures will be, revenue projections, etc.
Then consider ALL of what you own and determine from amongst such which can be borrowed against and/or liquidated. Certainly, if you own a home, that's an EXCELLENT place to start. And these days, one can borrow again car titles even.
If there are those who believe in you – friends, family, etc. - as a potential business person, maybe they will lend you money or invest into what you're doing. Or perhaps they’ll co-sign a loan for you.
Check with your local chapters of the Small Business Association. They may have funds available for foks who don't have sparkling credit ratings.
Now. Effectively doing the above requires that you be very SERIOUS about your desire to run a business. Don’t do any this until you’re SERIOUS about wanting to take all the chances you’ll have to take to make a business succeed.
Also, if you’re already in business and have unpaid account receivables (foks owe YOU money), you may be able to sell or factor a part of what’s owed to you - at a discount to the buyer, of course – to companies that buy receivables. Although you won’t get all that’s owed to you, you may be able to use what you get to sustain what you’re doing or expand upon such. |
Chrishayden
AALBC .com Platinum Poster
Username: Chrishayden
Post Number: 3879
Registered: 03-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, March 12, 2007 - 05:03 pm: |
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Any questions? Please ask
(Are you hiring?
What's the FRINGE benefits? Do I get to work from the comfort of YOUR home, too?) |
Doberman23
Veteran Poster
Username: Doberman23
Post Number: 870
Registered: 01-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, March 12, 2007 - 05:11 pm: |
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what sort of business are you talking about? not all businesses need a bunch of money to get them started and if your looking for investors, maybe you can try your friends and family. if you've got a good enough business plan then some banks or other lending institutions may over look some of your credit issues ...but that better be one helluva a business plan. |
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