Small business loan question

paulwf

If you are looking for a guide to start up costs the first thing to do is decide where to pitch yourself in the market...are you selling £100 or £2000 dresses? Although you can cover a reasonable price range chances are you won't be able to be bargain basement and boutique designer at the same time. You can of course start at a price point and raise it over time as your reputation grows but you can only do this to a certain extent.

If you have the nerve to do it "mystery shop" some dress shops, or if not at least try and talk to some owners (perhaps network at wedding fairs). If you find a shop you like you could use that as a model for your business plan. Try and list all the costs, you'll be surprised how quickly they add up (£2K for a surveyor, £500 for a computer and printer, £500 for a till, £500 for a website, £1,000 for a solicitor and so on).

I think having a goal to work towards is a great idea...I'm getting closer to opening my business and the closer I get the more hours I'm prepared to put in at the job I dislike as I know the extra money is going to help me build my business

Fliss_M

oh am mystery shopping alright! hehe. my sister is gonna try the gowns on so I can watch how they deal with gowns that are too small and too large :-D

think i'll get some books from the libary to help me and get as costs together. The plus size and maternity specialist suppliers are all 500-1000 so think thats my market. theres no point in being a specialist if am gonna use the normal suppliers in larger sizes.

Other point there will be many an empty evening once dh joins the raf to go over all this. I can do the figures to death then hehe

Theres an old reck of a house.. £65k, was 220k but it burnt. No roof. I would love to buy that and create my dream shop. The whole 1st floor with ceiling windows and big mirrors. hehe, I can dream (and play the lotto ;-) )

mrsdarbs

Just wanted to say hi - I've been having a good old read of this post. I am in a similar situation - only much more debt! My hubby is army and we are trying our darned hardest to clear this debt as quickly as we can and are just starting to see some progress, but it's slow going.

I have wanted to start a wedding planning business since 2002 and finally plucked up the courage to tell myself I can do and have started to do all the market research with the hope to open next year or 2011.

I haven't got any advice on this matter - but just wanted to wish you the very best of luck!

Fliss_M

thanks hun. and fingers crossed for you too.

QueensferryRoss

Hi Fliss.

Looks like you are being pointed the way of an EFG Loan.

This is a regular business loan where the government provide partial security. DBERR charge you a premium on the loan for providing the security (normally 2% per annum paid quarterly IIRC).

The security is only up to 75% of loan amount and the bank may still ask for further security from you on top of this, or at least to guarantee it.

Many lenders also charge a higher interest rate on EFG backed loans becuase the risk is higher to them.

You will also have to prove your viability through way of projections, business plan etc.

I'd recommend you spend a day going to see the local Business Managers in each of the banks with your business plan and see what they will do for you.