Any business owners here?

How hard is it to pull a loan for a small business nowadays? I have good credit (not sure about my score) and my business partner also has good credit. We are thinking of opening a small tea/coffee/pastry shop in a urban area. We are planning to make a business proposal and I have no clue on how to make one. Luckily my partner does b/c he has done it for our family business (hotel - hotel proposals are HUGE!!!) He told me small business proposals are only about 15-20 pages long.

The following is the area we want to open it at.  The link provides avg incomes, age groups, race, etc.
[URL]http://www.city-data.com/neighborhood/Houston-Heights-Houston-TX.html[/URL]

im not a business owner, but the heights are blowing up mang. the city either just approved or is in process of approving hundreds of liquor licenses for the heights near washington. GL homie. i really wanna do something out there too.

Was an owner, but most banks dont do business loans for businesses existing less then two years..Businesses earn credit just like people do and the lack thereof increases risk. Do research on sba loans before applying imo..

[QUOTE=airmax;281755]im not a business owner, but the heights are blowing up mang. the city either just approved or is in process of approving hundreds of liquor licenses for the heights near washington. GL homie. i really wanna do something out there too.[/QUOTE]

I'm looking at a lot on washington.  Kind of near sawyer park, the big sports bar.

Aug: I'll have to look into sba loans then, thanks!   But doesn't big banks back up sba loans?

You will have to have a very, very detailed business plan to get a loan from the bank without a previous history. However, there are some businesses where being in business for 2 years before being eligible is unrealistic and depending on your bank you can negotiate a loan sooner (or right away) if you can put up collateral or agree to a higher then average interest rate.

Another thing that works sometimes is to provide information (sales records, ect..) from a similar business to show the bank that it is a safe and profitable idea.  At the end of the day a human is going to be making the decision wether or not to give you the loan (though policy comes into play) and if you can make a convincing enough case you have a shot, not a computer, so anything is possible.  For everything else, there's mastercard.

There are programs out there that have you make select purchases and what not to build up your businesses credit faster. I don't know what they are called but I know they are out there.

If you go at them with just numbers thats one thing, but if you go at them with a general layout of the shop, what you are going to provide, what makes your business unique, what you are going to do to advertise, ect.. then it is going to build confindence and whoever is reading the proposal will see that you are serious about it.

Another thing to look into is that there are a TON of people out there who have a TON of money tha is making them 2-3% at best right now.  If you give the proposal to them and cut them in a 10-15% they WILL look into it.  Literally yesterday a friend of a friend was talking about how someone just put up a bunch of cash to help them shortsell houses because their investments were barely paying them a 2% return and making 15% on a much shorter time frame  was a no brainer for them.

Good luck!

holy cow!  money talks!  I don't have any money that talks :pat:

Well i've said it once and i'll say it again.  There is always...

[url]http://www.youtube.com/watch?v=wEtc6gObnbg[/url]

[QUOTE=TLontheDL;281761]I'm looking at a lot on washington.  Kind of near sawyer park, the big sports bar.[/QUOTE]

i know the place ive been there once. its right near a-front. man ive been stressing myself out about trying to open my own spot up, right now just doesnt seem like a good time with the economy the way it is.

Truckin company.. 
 
family business .. 
 
and yes the economy sucks and the efen banks

I am working with a bank that wouldn't do small business loan for a new business but looking into this for myself

its ironic how bad our economy is but there are some business that is still surviving!  I noticed a lot of restaurants/bars are still busy.

i own a tint shop and we have actually increased in sales from last year.  but we r still down about 15% from 3 years ago.

dont rely on a loan, go out get you business stuff already and make some visits to banks about setting up several accounts.  then ask about lines of credit.  might be your only hope.  i opened up shop with lines of credit and my own personal credit cards.  if your business is solid you will pay off all of them in a bout a year as long as you dont have a lot of liabilites to begin with.

when i started i was not married, no kids, no mortgage

oh and dont rely on what youve heard and what you learned in school about marketing.  this is a completely different market, get creative.  and all those small dollars DO add up at the end of the year

go to banks and open up several credit accounts?  How does that work?  Just charge things on these credit cards and pay it back with the money we make (once the business is open)?

[QUOTE=airmax;281793]i know the place ive been there once. its right near a-front. man ive been stressing myself out about trying to open my own spot up, right now just doesnt seem like a good time with the economy the way it is.[/QUOTE]
 
 
 
I agree..right now wit the economy the way it is..I think opening a new business would be sorta suicide:shrug:. But on the other hand, because real estate and the economy has spiraled so dramatic..U can get a building for rent or lease for almost nothing.. I'm in MD.,I'm lookin to eventually open custom bodyshop with other services to add,:runcoold: and before I couldnt find a shop to save my life..Now  they are a dime a dozen..I'm gonna hold out awhile longer

[QUOTE=TLontheDL;281847]its ironic how bad our economy is but there are some business that is still surviving!  I noticed a lot of restaurants/bars are still busy.[/QUOTE]

lol holla at spotlight almost any night of the week and see how bz they are. its retarded how many ppl are there thurs, fri and sat, along with almost every bar on washington. sawyer park is stupid on the wknds. its all about location.

fkn spotlight!  They use to not charge for cover but I hear they do now.  That man who owns that place has been in the karaoke business since I was going to school in Alief, early 90s.  He made good money before charging cover and makes more now with cover.

The thing with sports bar is you have to get your liquor license and the license to serve cooked food (I can't remember the exact term).  The overhead cost is high but prob not as high as a regular restaurant.  The neg thing about sports bars is they have their moments.  later, it will prob die b/c another "hot spot" just opened up. :pat:

im a small business owner with freakin bad credit.
in order for me to fund things it was all hustle money cuz i know for a fact banks wont loan me no damn money. 

i will be doing a corporation in the next month and will see if i can get a half mill loan.
im crossing my fingers like a bitch...

what kind of corp req 500k to start up?

here's a few articles:

[url]http://online.wsj.com/article/SB125451683482660349.html[/url]

[url]http://online.wsj.com/article/SB10001424052748703746604574463564272873216.html[/url]

[url]http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article73384.html[/url]

[url]http://www.entrepreneur.com/magazine/entrepreneur/2009/april/200810.html[/url]

[url]http://www.entrepreneur.com/money/finance/index.html[/url]

best of luck to you and your partner. my goal is to start a business when i finish school.

[QUOTE=TLontheDL;282002]fkn spotlight!  They use to not charge for cover but I hear they do now.  That man who owns that place has been in the karaoke business since I was going to school in Alief, early 90s.  He made good money before charging cover and makes more now with cover.

The thing with sports bar is you have to get your liquor license and the license to serve cooked food (I can't remember the exact term).  The overhead cost is high but prob not as high as a regular restaurant.  The neg thing about sports bars is they have their moments.  later, it will prob die b/c another "hot spot" just opened up. :pat:[/QUOTE]

they charge a cover now bc they want to keep a certain crowd out. it actually worked, im friends with most of the staff there. everyone makes more money, and is genuinely happier now that certain ppl arent there being cheap, not drinking or tipping. i know its a karaoke bar, but damn...its still a bar lol. oh yeah theres a dress code on friday / sat now too lol.

[QUOTE=TLontheDL;282092]what kind of corp req 500k to start up?[/QUOTE]

The kind you get the money and bounce to Mexico for 7 years.... :giggity:

Here in AZ you have to have a minimal of 2 years in buissines, present a balance sheet and PnL and they basically roll the dice to see if you qualify...

Tried this through Chase and they declined me because of the industry I would operate (body shop). :signdammit:

Thinking on moving to a 'mobil cut and buff service' but not till I save more money and get new customers. Yes, this economy sux.

what is pnl?

[QUOTE=TLontheDL;282177]what is pnl?[/QUOTE]

Profit & Loss Statement or Income Statement

lines of credit my friend, prolly the only way.

How do you propose a pnl if you don't know yet how much profit you will make and how much of a loss you will have until your business is up and running?

i wish there was a like button for this thread. some good info coming out. i been looking for answers to some of these questions for a little bit now.

[QUOTE=TLontheDL;282202]How do you propose a pnl if you don't know yet how much profit you will make and how much of a loss you will have until your business is up and running?[/QUOTE]


they will be projections based on estimated sales and expenses in year 1, 2, 3, etc