Financing a first business

Sleepy

A question for the entrepeneurs here. How did you finance your first business? Was it a matter of investing your own savings? Did you get a business loan? Borrowings from friends and family? A personal loan? A mix of all of these or something else completely?

In the case of a mix, I'd be curious as to how much of the start-up capital was from your own pockets (roughly on percentage basis).

I've the kernel of a business idea and I'm trying to figure out how to finance it.

drdre

i invested my saved up cash,

SouperComputer

The amount and type of capital you need depends entirely on the type of business you are setting up.

Personally, I started out without any real assets, with the exception of contracts that I had and a couple of K in the bank. Its a service based business, run from home and the car so no major initial outlay was needed.

I will be needing more capital for the next move though.

Sleepy

Hmm, I'm thinking more of a retail-type outlet which would require a lease, fittings, initial stock etc.

Anyone out there got experience in setting up that kind of business?

SouperComputer

I ran a retail outlet for a couple of years, almost from the start.

Do you have any capital of your own to put in? If not it can be hard to get others on board. Naturally you need a business plan, but im sure you have the makings of one already.

gerrycollins

Sleepy wrote:

Hmm, I'm thinking more of a retail-type outlet which would require a lease, fittings, initial stock etc.

Anyone out there got experience in setting up that kind of business?

there are many way to do this kind of set up first of all dont use your own money

have you a location,idea,business plan,surveys of the local area, etc all factor in, then you can go to investors to get a few 100K off them as set up then with you plan got to the bank and get the rest,sounds complicated i know,but you need money to get money,
Most remortage their house to get the first 100K or so then this is used as colateral with the bank but now your house is on the line so best to get investors who will agree to a return on their investment in a few years while you spend the rest of your life paying off the bank
Im in the middle of doin it at the mo PM me if you want

Sleepy

gerrycollins, when you say investors, do you mean VC companies / family / friends?

I'd imagine the business could be started for about 100k, I haven't done the business plan aside from in my head yet. The details are straightforward enough. Getting the first 100k would be my big problem, I'm 25 and literally without a cent to my name (no house to mortgage) .

gerrycollins

Sleepy wrote:

gerrycollins, when you say investors, do you mean VC companies / family / friends?

I'd imagine the business could be started for about 100k, I haven't done the business plan aside from in my head yet. The details are straightforward enough. Getting the first 100k would be my big problem, I'm 25 and literally without a cent to my name (no house to mortgage) .

investors can be anybody that is willing to stake a few bob in your business but like the bank they will need to see plans ideas etc also best to stay away from families/friends i have a contact name of an investor who said he would talk to me later when i get my idea off the ground i could dig his name up for you if you want