Starting a business

3yearstogo

Hi,

For the past few years my partner and I have wanted to open our own shop (pram centre/baby) we have found the perfect unit with parking and space but have no idea how to start.

We have no money to put forward and do have a house and mortgage which has 18k equity in it but we cannot take that money out right now as the bank is 20% loan rate so it is a no go..

Any idea on where to start... Is it possible to approach banks to ask for business loans with no payment for 6 months etc? Any advice welcome!

olias

3yearstogo wrote: »

Hi,

For the past few years my partner and I have wanted to open our own shop
We have no money to put forward

You have answered your own question. Please, don't even think about it without having a decent amount of cash saved to start up. If you have that little grasp of business that you are considering starting up with no cash, and a large debt, then you will be doomed to failure. I'm not having a go, this is a genuine attempt at a helpful answer.

Olias

chalkie99

I'm afraid you won't get any help from a bank without at least having an equal amount of your own money to invest and a squeaky clean credit record, even less chance of deferred payments.

Annisele

3yearstogo wrote: »

Is it possible to approach banks to ask for business loans with no payment for 6 months etc? Any advice welcome!

Like Olias, I'm really not trying to have a go at you. The problem is that if you ask a bank that question, they'll laugh at you - the answer is that they will not lend on that basis.

If you're in England, Business Link can give information about setting up a new business (if you're elsewhere in the UK there are similar sites for other regions).

As a very beginning, you need to:

• Have savings - no bank will give you a loan if you're not putting down at least some of your own money.
• Have savings so that you can afford to live while you're building your business up - you'll make no money at least for a little while.
• Know your market - is there a demand for whatever it is you're selling?

Caroline_a

Have you done a business plan, set out spreadsheets to forecast sales and cash flow, found your break even point? Do you have any competitors in the area, what sort of customer base would you have? It sounds a lovely thing to do, to start up a business from scratch, but unless you plan before you even look at anything you are almost certainly doomed to fail. Probably why so many new businesses fail in the first year...

GoodNewmover

3yearstogo wrote: »

Hi,

For the past few years my partner and I have wanted to open our own shop (pram centre/baby) we have found the perfect unit with parking and space but have no idea how to start.

We have no money to put forward

Some people when they cannot afford to open a shop, start small, i.e. selling their products from a small office or their home. Once they make enough they invest some of that money into their dream, their shop or whatever it is. See how you and your partner could start small and work you way upwards using Smarta and BusinessLink.

3yearstogo

Thanks for the advice guys, I didn't think anyone was having a go at all!

I'm glad I asked first rather than approach a bank. Caroline, we have looked at business costs, competition, contracts for pram brands and so on but nothing proper looking to show any banks/investors.

Goodnewmover, I didn't think of starting it from home first. I will have to look into that aspect!

A shop is something to maybe look at in the future !!! Thanks

olias

3yearstogo wrote: »

Thanks for the advice guys, I didn't think anyone was having a go at all!

I'm glad I asked first rather than approach a bank. Caroline, we have looked at business costs, competition, contracts for pram brands and so on but nothing proper looking to show any banks/investors.

Goodnewmover, I didn't think of starting it from home first. I will have to look into that aspect!

A shop is something to maybe look at in the future !!! Thanks

Although it's a competetive market and the profits aren't what they once were, ebay is as good a place as any to start. No start up costs except your stock, and a huge potential market place.

I started last month with a small amount of bankrupt/liquidated stock, and have turned over £700 in the first month. Another month or two and I'll have broken even and be into profit,

Olias

saintjammyswine

Have you considered an online presence?