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Starting up a new business

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laurajane92laurajane92 Forumite
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Hi, I’m looking for advice on starting a new business. I’m completely new to this and I’m looking for advice on business loans or start up loans? The issue I’ve had is that I have a great business plan which is something that i know will bring a lot income as the service I’m wanting to provide is the only one in my local area however my personal credit score is very low. I feel I am stuck as I have been turned down for start up government backed loans due to my personal credit file. If anyone could give any advice or guidance on where to go I’d be very grateful as I know this business will work 100% guaranteed! 
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  • edited 28 July at 10:25AM
    soolinsoolin Forumite, Board Guide
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    edited 28 July at 10:25AM
    The first questions are how much of your own income can you put in and are you starting a new unique business or buying an existing one?

    When you say you have a poor credit score what do you actually mean? Have you tried , for instance, taking your business plan and projections of income etc to your own bank to see if they are prepared to offer a loan? 
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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  • laurajane92laurajane92 Forumite
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    Hi, thanks for replying. Basically It’s not a unique business it’s been done before however there is no one in my area within 15 miles providing the service. I’m looking to put £2000/3000 into of my own income I have worked out to set up and open the doors I’d need £15000 as I need equipment which is £5000 and a premise. My credit score is poor due to a default Which I am in the process of paying off however I cannot get any finance or approved credit right now due to this. I bank with an online bank which do not provide loans, well not that I’m aware of. So I’m just seeing what options I have as I know that it’s not a lot of money needs and with all calculations I would have this paid back in the first year of business. 
  • LomastLomast Forumite
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    Sorry to be blunt but no bank is going to lend you £12k to set up a business especially with a poor credit history they would want a personal guarantee at the least, do you own your home?
     You need to work out a way of starting the business in a small scale without the high initial start up costs.

  • laurajane92laurajane92 Forumite
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    MoneySaving Newbie
    This is why I’m looking into other ways to fund the money as I’m fully aware that no bank will lend a unsecured loan to myself at this time. I’m really determined to get this business up and running I’m just looking for advice how to start as a new business owner and how to get funding without government backed loans or banks, thanks
  • LomastLomast Forumite
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    Friends or family that could lend to you? 

  • lincroft1710lincroft1710 Forumite
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    If it is such a money spinner, why has nobody else set up in your area?
  • laurajane92laurajane92 Forumite
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    I’m not sure I think people are scared of a risk maybe? It’s a service in baby scanning which so many people a year go to privately including myself when having my children. I feel that I can provide an amazing experience for mums and families who are expecting however there is nothing in my local area that provide this. So I’m hoping someone can give me advice on how to achieve this! 
  • lincroft1710lincroft1710 Forumite
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    Presuming that the service is not available on the NHS, would there be sufficient mothers-to-be who would want and could afford this service 
  • LomastLomast Forumite
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    In sorry but that is going to be a high risk business, retail premises, rates, insurance etc how long is that £15k going to cover the overheads for?
    If the equipment is £5000 and you are already prepared to put £2-3000 in could you not finance the machine and start off offering the service in customers homes and grow from there

  • soolinsoolin Forumite, Board Guide
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    I am aware of baby scanning businesses and can I just mention that I hope your business plan includes some rather hefty insurance. I would be talking to specialist providers for this and hopefully that is shown as a high priority expense in your business plan. 

    I’d be rather surprised though if you have nothing local, all the private clinics and hospitals do it and many GP premises as a private sideline. I would suggest you also need to look in a wider field than just 15 miles , you really need to check out a radius of about 40-50 minutes to get a better idea of competition. 
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
    New to Forum? Guide
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