New Business loses round 1

[chesty]

Well, I lost round one on the financing to Wells Fargo. I should have known. Everyone I talk to says they are the worst bank around for getting loans and credit, even if you have outstanding credential.

Well, hopefully I won't lose round two. But now I am being forced to look for venture capital and that scares me because I may not be able to give a return and would hate to lose someones money and I am not that familiar with that arena. But it does have a potential for providing enough cash flow to hit it big time if done very carefully and somewhat conservatively.

Oh well, just me crying, since I can't win against the system.

 

[gymnpoppa]

Chesty,

Stay away from venture capitalists, they essentially own you, and the terms favor them, always. You will be working for them, any money they loan you, they want back before YOU can make a dime.........

 

[gymnpoppa]

Also,

Try the SBA (small business admin), I am thinking you are a woman, if so you qualify as a minority, your best bet, better than just walking into banks, they have banks setup to deal with you......as long as your credit is decent, and you are not just starting...banks are very leery about lending anyone money on startups.....Good luck!

 

[WarriorPL]

What type of business are you trying to start?


~WizKid

 

[chesty]

It is a retail hobby store that includes custom designs for R/C and Rockets.

No, I am far from a woman. And it was the SBA section of Wells Fargo that told me to shove it up my ass!

I am a veteran, colledge educated and expert in my field. Keeping my job etc.

As for the 50g's, all I could promise is a monthly payment at what ever prime is. Something like 8 or 9% It would be like a loan. If I can't get something to happen by next week I may just take you up on that.

Email me.

 

[big4life]

Chesty, I think he thought you were a woman from your handle, probably doesn't know marine history. My father was a retired marine, so I know little about it. Good luck on your store.

 

[MattTheSkywalker]

Chesty,

You're not going ot be dealing with traditional venture capitalists to fund a hobby store. VC firms generally deal in much bigger ticket items - not a flame - but a VC fund is usually a few hundred million or more. The revenue that a hobby shop can generate would not be worth their while.

Also - what is the final outcome? IPO? Unlikely. Acquisition....nope. So there really isn;t much in this for VCs.

Keep doing what you;re doing. A bank will loan you the cash - also - get in touch with VA...I think they have an arm for this.

Good luck.

 

[cm3504jm]

Chesty,

All the banks these days are getting tight with the money.

That is why I quit my biz. They would not renew my line of credit even after 10 years of profits and paying back 100k in interest per year plus the 1mill principle. They hired new loan officers and they were the biggest assholes I've ever encountered. Most never know what hard work starting a business is.

SBA is a joke, just a bunch of bureaucrats that sit around all day and reject apps that banks send them based on how the fuck they are feeling that day

All I can say is just keep kicking, scratching, and hanging in there. A small business is like boiling water: nothing happens until you reach a certain point, then watch out!

Good luck to you....

 

[chesty]

I think my use of the term V.C. might be a tad off.

at this site

http://www.seedcapitalnetwork.com/ this is what I am really talking about. Private investors looking to fund projects that they are interested in either as a loan or an investment.

Check it out and let me know your take on it Matt.

The 3 year projection is this

318,000 total sales
353,333 total sales
392,592 total sales

Based on the area and its current growth rate and that it will be larger than Flagstaff Arizona in 5 years (2007)
the projected annual sales will be well over 500,000.

I am also starting an Engineering Business, Structural Analysis and Design (and aerodynamic work if possible) I am going to set up (hopefully) a deal with my college (it is a private institution) that will allow me access to wind tunnels (low speed and supersonic) as well as the library, bookstore, etc (teachers included)

The potential is there the drive is there, it is either getting investors or getting a loan to fund the projects that will be difficult. But nothing that is easy is worth it. Even girls (well, maybe girls)

Any who, give me your personal take on the above site.

chesty

 

[MattTheSkywalker]

I'm short on time now. I'll check it in depth later tonight or tomorrow