Financing Poll - Page 2

honey772kids · 12-22-2005, 08:50 AM

And you need to constantly re-evaluate your situation and make necessary changes...It is all trial and error....Not cut and dry...

cametotalktan · 12-22-2005, 04:02 PM

mstnt- you and I are pretty identical in this. My husband would love it if i failed just so he could say " I told you so" Yet on the other hand he is a big dreamer of his own, but no juevos to go with it. I still love him tho. I started with all new equipment because this town didn't have anything like it. I did everything with my daughter's help, she did the plan and we were approved within a week thru the sba, NOT HEARD OF EVER. My husband was shocked. Got to have good credit. At the time we owed nothing and no debt but house payments. I gave up a very well paying job for this so that is hurting us. we did the line of credit as well and every credit card app that came i filled them all out and was turned down on one. so i have enough capital to make my bills. so in the busy season i can hold on to that and maybe pay the house back. when my daddy passed he left me a chunk of change that was my 30% for my loan.

missyhot · 12-22-2005, 04:23 PM

I started out small and within a year I have been able to build up. Purchasing 2 more beds. Check out Lending Tree Commercial Division. They just approved me to refinance and put more into the business. If you show a bank that your doing well they are more apt. to approve an existing business. JMO. GOOD LUCK! 300K seems really high to me.........

missyhot · 12-22-2005, 04:26 PM

Oh ya, to answer your question, I started out charging alot on credit cards with low interest rates with the anticipation of paying them off within six months (once I was established) and so far that is working out because the bank is paying them off now.

ALOHATANCA · 12-22-2005, 04:55 PM

Business plan is a must , work it hard, see what the competition is doing , check the demographics with the Chamber. $300 k is about right for everything. I am older so I did not want to put up my house . I was able to go into a place that had the build out done & paid for then used credit cards ( which I wished I had not done ) then financed the rest with my savings & leasing some of the beds.

Failure in the first season is a problem for alot of owners , bad planning & NOT having the funds to get you through the first 3 slow seasons.

cametotalktan · 12-22-2005, 05:02 PM

the sba requires you to have a contractor to do everything so upping the cost does not work. keep your 30% in the bank and use their money first..

mstnt · 12-22-2005, 07:09 PM

My husband is supportive in a way, he's just a procrastinator and not a risk taker. He's actually kind of liking the idea of having the salon. But he just freezes and misses out on opportunities. It is kind of ironic, because I bought this house on my own (after we were divorced) and added him on after we were remarried (long story).

On another note I did our BP and I tried to be fairly conservative so I wasn't trying to delude myself. I included in start-up money three months rent and three months payroll, plus $50k for cash on hand to start with. Like I said we are working on a location that's in a new strip mall that's being built now. And it's in a good location, high traffic, good visabilty. I don't know if I should try another bank although I have a established somewhat of a connection with this guy. I guess I should talk to our accountant about some of this.

Thanks for the feedback and support.

cametotalktan · 12-22-2005, 07:12 PM

You won't get any contigency money for future use. They only give what you need to open. Learned that the hard way.

cametotalktan · 12-22-2005, 07:12 PM

mstnt~ was he born in march by chance?

mstnt · 12-22-2005, 07:13 PM

Alohatan: Failure in the first season is a very, very scary thought.

12-22-2005, 08:50 AM	#11 (permalink)
honey772kids Join Date: Nov 20 2003 Location: Colorado Age: 31 Posts: 169 Rep Power: 5	Re: Financing Poll And you need to constantly re-evaluate your situation and make necessary changes...It is all trial and error....Not cut and dry...

12-22-2005, 04:23 PM	#13 (permalink)
missyhot I love Derf!! Join Date: Jun 30 2005 Location: Michigan Posts: 2,595 Rep Power: 102	Re: Financing Poll I started out small and within a year I have been able to build up. Purchasing 2 more beds. Check out Lending Tree Commercial Division. They just approved me to refinance and put more into the business. If you show a bank that your doing well they are more apt. to approve an existing business. JMO. GOOD LUCK! 300K seems really high to me.........

12-22-2005, 04:26 PM	#14 (permalink)
missyhot I love Derf!! Join Date: Jun 30 2005 Location: Michigan Posts: 2,595 Rep Power: 102	Re: Financing Poll Oh ya, to answer your question, I started out charging alot on credit cards with low interest rates with the anticipation of paying them off within six months (once I was established) and so far that is working out because the bank is paying them off now.

12-22-2005, 04:55 PM	#15 (permalink)
ALOHATANCA Police Department Join Date: Nov 14 2003 Location: CALIFORNIA Age: 49 Posts: 4,436 Rep Power: 8	Re: Financing Poll Business plan is a must , work it hard, see what the competition is doing , check the demographics with the Chamber. $300 k is about right for everything. I am older so I did not want to put up my house . I was able to go into a place that had the build out done & paid for then used credit cards ( which I wished I had not done ) then financed the rest with my savings & leasing some of the beds. Failure in the first season is a problem for alot of owners , bad planning & NOT having the funds to get you through the first 3 slow seasons.

12-22-2005, 05:02 PM	#16 (permalink)
cametotalktan I love Derf!! Join Date: Jul 10 2004 Location: california Posts: 4,970 Rep Power: 35	Re: Financing Poll the sba requires you to have a contractor to do everything so upping the cost does not work. keep your 30% in the bank and use their money first.. __________________ When I grown up I want to be Angerfant.....

12-22-2005, 07:09 PM	#17 (permalink)
mstnt Join Date: Oct 29 2005 Location: WC Posts: 77 Rep Power: 0	Re: Financing Poll My husband is supportive in a way, he's just a procrastinator and not a risk taker. He's actually kind of liking the idea of having the salon. But he just freezes and misses out on opportunities. It is kind of ironic, because I bought this house on my own (after we were divorced) and added him on after we were remarried (long story). On another note I did our BP and I tried to be fairly conservative so I wasn't trying to delude myself. I included in start-up money three months rent and three months payroll, plus $50k for cash on hand to start with. Like I said we are working on a location that's in a new strip mall that's being built now. And it's in a good location, high traffic, good visabilty. I don't know if I should try another bank although I have a established somewhat of a connection with this guy. I guess I should talk to our accountant about some of this. Thanks for the feedback and support.

12-22-2005, 07:12 PM	#18 (permalink)
cametotalktan I love Derf!! Join Date: Jul 10 2004 Location: california Posts: 4,970 Rep Power: 35	Re: Financing Poll You won't get any contigency money for future use. They only give what you need to open. Learned that the hard way. __________________ When I grown up I want to be Angerfant.....

12-22-2005, 07:12 PM	#19 (permalink)
cametotalktan I love Derf!! Join Date: Jul 10 2004 Location: california Posts: 4,970 Rep Power: 35	Re: Financing Poll mstnt~ was he born in march by chance? __________________ When I grown up I want to be Angerfant.....

12-22-2005, 07:13 PM	#20 (permalink)
mstnt Join Date: Oct 29 2005 Location: WC Posts: 77 Rep Power: 0	Re: Financing Poll Alohatan: Failure in the first season is a very, very scary thought.

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