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M.D. Holloway 01-22-2007 06:48 PM

What Are the Best Way(s) to Fund a Start-Up
 
Lets say you come up with a pretty good idea for a business but its going take some working capital. You have some money saved and you can mortgage your home but what if you need more to get it off the ground. What are the best opinions?

Jims5543 01-22-2007 07:00 PM

PM Me and help me get ou tof this damn land surveying business!!!

74-911 01-22-2007 07:00 PM

Kind of depends of how much capital you are talking about ??

stomachmonkey 01-22-2007 07:05 PM

None of the above.

PM me and I'll give you the skinny.

on-ramp 01-22-2007 07:06 PM

with Capital Venture, if company tanks, you don't have to pay back a loan. If company does well, they own most of it.

so both ways, you're screwed.

pwd72s 01-22-2007 07:08 PM

I said venture capital over SBA for a reason. Venture capitalists need to think your idea will succeed before they invest. SBA is like any other bureaucracy. They don't care about success...only if you comply with the regulations. Do you want to succeed? Or do you just want taxpayer's money? If it's the latter, go into politics.

pwd72s 01-22-2007 07:13 PM

Re: What Are the Best Way(s) to Fund a Start-Up
 
Quote:

Originally posted by LubeMaster77
Lets say you come up with a pretty good idea for a business but its going take some working capital. You have some money saved and you can mortgage your home but what if you need more to get it off the ground. What are the best opinions?
Mike? Didn't you recently post that you are on prescribed happy pills? These just may be affecting your thinking...Saying this because you mentioned 2nd mortgage and credit card debt to pull your "idea" off? Sometimes, just sometimes mind you, "ideas" formed while under chemical influence may not look so good under the light of sobriety. SmileWavy

stomachmonkey 01-22-2007 07:27 PM

BTW, the amount is a factor.

If the amount is to little you will have little interest from people that can fund and shrug it off as a lose. Those are the people that you want.

Sonic dB 01-22-2007 07:39 PM

It depends on the type of business it is, and whether you need a ton of capital to get started, for technology, marketing etc.
I started my company a few months ago on my personal savings
alone. I do not have a lot of overhead and work with a studio
that produces my work on a per-job fee basis. The only thing that
will determine the "success" or failure of my business is my own
personal sales efforts...at least at this time. Other businesses
would require much more extensive financing.

Either way, I would look at personal assets and personal
loans first, before seeking VC or SBA loans. Those things
can always come later on... and will be more attractive for those options,
particularly if your idea already has
some roots.

M.D. Holloway 01-22-2007 08:18 PM

Re: Re: What Are the Best Way(s) to Fund a Start-Up
 
Quote:

Originally posted by pwd72s
Mike? Didn't you recently post that you are on prescribed happy pills? These just may be affecting your thinking...Saying this because you mentioned 2nd mortgage and credit card debt to pull your "idea" off? Sometimes, just sometimes mind you, "ideas" formed while under chemical influence may not look so good under the light of sobriety. SmileWavy
Paul,
I mention the 2nd mortgage and the CCs because that is actually how some folks do it - I'm not saying that is what I would do. The idea(s) were around long before my meds. Several things actually started lining up to mke the concepts very plausable.

The idea isn't sexy or very exciting but rather a few basic requirements that really need to be filled and are not. I have done my homeowrk on it over the past few years and the idea has merit. I just have to finish up a few things before it can really take shape.

I want to have things in motion when a few projects get underway.

alf 01-22-2007 09:31 PM

Like many said, depends on the venture and how much you need. As an investor, I always want to see you have skin in the game. You should put some $$ in yourself.

But first get a business plan together to show that you gave the idea some thought and to sit down and think through it yourself.

FYI, SBA loans are regular bank loans that are guranteed by the SBA if you default, you still have to collateralize against them personally, the SBA only steps in to bail out the bank if your assets do not cover your debts.

pwd72s 01-22-2007 10:21 PM

Re: Re: Re: What Are the Best Way(s) to Fund a Start-Up
 
Quote:

Originally posted by LubeMaster77
Paul,
I mention the 2nd mortgage and the CCs because that is actually how some folks do it - I'm not saying that is what I would do. The idea(s) were around long before my meds. Several things actually started lining up to mke the concepts very plausable.

The idea isn't sexy or very exciting but rather a few basic requirements that really need to be filled and are not. I have done my homeowrk on it over the past few years and the idea has merit. I just have to finish up a few things before it can really take shape.

I want to have things in motion when a few projects get underway.

Okay...just wanted to be sure it wasn't the pills talking. Now, are you sure you want the added stress that starting a biz entails?

dd74 01-22-2007 10:39 PM

Steal her...http://www.ncrw.org/interest/2005Awa...rees/heinz.jpg
...from John Kerry... ;)

NICKG 01-23-2007 05:47 AM

stolen pirate booty gets my vote...

holtjv 01-23-2007 08:08 AM

Moonlight, sell some business, and self-fund. The only good answer among the choices.

arcsine 01-23-2007 09:02 AM

Illicit drugs. Worked for John DeLorean.

oops, nevermind

berettafan 01-23-2007 10:41 AM

avoid family dough if losing it would stress the family.

consider finding a CPA in your area with a reputation for quality clients and high rates. he will have access to people with money to burn and will hopefully be qualified to render an opinion on your proposal.

be VERY careful to know your role and goals up front and keep them in sight throughout the process.

M.D. Holloway 01-24-2007 01:42 PM

Quote:

Originally posted by alf
...SBA loans are regular bank loans that are guranteed by the SBA if you default, you still have to collateralize against them personally, the SBA only steps in to bail out the bank if your assets do not cover your debts.
Yep, line of credit. You do have to pony up something but your chances increase if you have a solid biz plan and income that won't stop while to draw out the capital. Look like the terms are esy but the rates are typically a point above prime. The min payback is interest or $100/mth which ever is more (I think I got that right).

I can do this on a shoestring with money I put in. By doing that I am looking at a few years to launch. An infusion of capital would launch quicker.

pwd, this would be a change out of what I am doing now.

Tishabet 01-24-2007 02:45 PM

To do this right, how much money will you need? If it's under 200k, bootstrapping with family and friends get my vote. Over that, start looking at angels.
If you don't yet know how much it will take to do it right, find out... one great resource if you've never had to do this kind of exercise before is SCORE (score.org), they were absolutely essential in putting together the plan and connections that led to the funding of my last startup.

holtjv 01-24-2007 05:39 PM

Well, if you're around Austin, I do have some VC contacts you could talk to. In fact, one is a professional friend and has gone to at least one of the local pca happy hours. He's good enough guy such that he'd give you some feedback and advice but he is very busy.

PM me if you're interested and I'll set you up--he's a true Porsche guy even though his latest is a 997. Jack


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