Need finance to get business Up and running - help!

[Hex McGettigan]

Hi,

I realise that if I sift through the forum I will get some answer however I'm hoping some of you might be able to give me some quick advice.

I have a startup business planned with stock and website all I really require at this point however I'm not in a position to get a loan to finance it as my credit rating is poor. Also I'm not a home owner so have nothing really to secure it against.

I'm in a decent job so could afford to repay it.

Realistically 5/6k would get me moving, so not a massive amount of money.

All suggestions welcome and forgive me for the brief summary.

 

[Paul_Rosser]

Have you tried friends/family ? Usually the best option if you have a poor credit rating so can't use the normal sources for funding such as banks.

 

[TotallySport]

the other options is to get a job be very careful with money, and save.

 

[ethical PR]

Also think about whether you need 5 or 6k straight away.

If you're in a decent job hopefully you will have so you have some of this amount through your own aavings.

 

[Hex McGettigan]

Have you tried friends/family ? Usually the best option if you have a poor credit rating so can't use the normal sources for funding such as banks.

Thanks for your reply Paul. I should have mentioned in opening post that unfortunately freinds and family aren't in any better a position than me.

 

[Paul_Rosser]

Are you employed at the moment? As Ethical_PR and Totallysport said your best bet would be to save up from personal funds.

 

[Hex McGettigan]

the other options is to get a job be very careful with money, and save.

Fulltime single dad so an additional/part time job isn't an option.

 

[Paul_Rosser]

Have you thought about crowdfunding ? And what is the idea ?

If you will be selling products then you could see if a supplier will work on a comission basis for orders you pass their way, so you act like an agent but would require no funds and you can then build up enough cash to look at getting stock.

 

[TotallySport]

Live off beans on toast for 6 months, don't go out, save the money that your offering to pay the loan off with, and within 6 months you will be close.

 

[TotallySport]

just out of interest, can you let us know what your planning.

Your going to become a retailer, start with ebay, buy the amount of stock you can afford, and sell it, reinvest and repeat.

That's called testing the water, along with building a customer base, until you can afford a web site.

You can get a ecommerce web site for about £20 a month for hosting using one of the open source scripts.

 

[businessfunding]

To summarise the responses, no one is going to give you money without some good security

You might get lucky and get a loan from Start Up or NEA - I hope not - not because I wish you ill but because you must learn to build a business from your own resources

Find ways of funding it - you will be better for the experience..

 

[Hex McGettigan]

Have you thought about crowdfunding ? And what is the idea ?

If you will be selling products then you could see if a supplier will work on a comission basis for orders you pass their way, so you act like an agent but would require no funds and you can then build up enough cash to look at getting stock.

I'm not sure that crowdfunding would be the platform for such a small investment. Maybe I'm wrong.

In regard to the actual idea, as there isn't really any company/business of note doing this I'm loathe to reveal too much however I feel I have identified a niche in a large marketplace. There are other business selling what I'm wanting to sell but not sure that they are being targeted properly so this is in my opinion a fairly significant USP.

Thanks for suggestion about acting as an agent, I never thought of that.

 

[TotallySport]

I'm not sure that crowdfunding would be the platform for such a small investment. Maybe I'm wrong.

In regard to the actual idea, as there isn't really any company/business of note doing this I'm loathe to reveal too much however I feel I have identified a niche in a large marketplace. There are other business selling what I'm wanting to sell but not sure that they are being targeted properly so this is in my opinion a fairly significant USP.

Thanks for suggestion about acting as an agent, I never thought of that.

I don't want to know details, I wanted to know if your going to be an online retailer and what sector of the market, eg garden furniture, pet shop, toys.

 

[Paul_Rosser]

I'm not sure that crowdfunding would be the platform for such a small investment. Maybe I'm wrong.

In regard to the actual idea, as there isn't really any company/business of note doing this I'm loathe to reveal too much however I feel I have identified a niche in a large marketplace. There are other business selling what I'm wanting to sell but not sure that they are being targeted properly so this is in my opinion a fairly significant USP.

Thanks for suggestion about acting as an agent, I never thought of that.

A USP is always a good place to start with any business, but do plenty of research as it may be that others have thought about doing it your way and decided it wouldn't work for some reason or other.

But if you can get a supplier to let you work as an agent then you can at least test the water with no real risk.

 

[Hex McGettigan]

just out of interest, can you let us know what your planning.

Your going to become a retailer, start with ebay, buy the amount of stock you can afford, and sell it, reinvest and repeat.

That's called testing the water, along with building a customer base, until you can afford a web site.

You can get a ecommerce web site for about £20 a month for hosting using one of the open source scripts.

Sorry, yes its an online retail business in the personal care market.

 

[TotallySport]

so why 6K. start with ebay, and build from there.

 

[Hex McGettigan]

so why 6K. start with ebay, and build from there.

Well I don't really need the whole 6k if was going down the ebay route and pitting off website for a while.

 

[internetspaceships]

Go apply for something like this perhaps?

http://www.leedsmet.ac.uk/news/15k-investment-set-to-boost-three-growth-businesses01082013.htm

 

[JonathanSEO]

With a decent job like you said then you should be able to put chunks aside and build capital pretty quickly without the need for a loan.

Also fire up eBay and sell everything that moves.

I agree with Tsport though test the concept on eBay first and see what happens. If a success you can reinvest the earnings into more stock and a website.

 

[Hex McGettigan]

Thanks for all your replies. Getting some stock shifted on ebay seems like the logical step to get the business moving.

 

[WHARTY]

Sorry, yes its an online retail business in the personal care market.

Adult nappies???

 

[Podge]

Adult nappies???

There's plenty of money in that but a few sellers seem to have cornered the market, trust being a major issue.

 

[Hex McGettigan]

Some good new - I've managed to secure about £1500 or so, question now for you all is what is best way of using it.

Should I simply use it all on stock and go the ebay route?

 

[Psl]

Some good new - I've managed to secure about £1500 or so, question now for you all is what is best way of using it.

Should I simply use it all on stock and go the ebay route?

I suggest that you make the decision on what to do with the £1,500.

In business you need to learn, as you have been told,and the only way you will do that is to make the decision yourself.

I would also suggest you go and read some of the threads on the Start up forum.

 

[TotallySport]

Although I agree with Psl, I wouldn't recommend blowing all your money on stock when your learning.

My advice when buy stock at the start is buy lots of variation, but hold money back, if you blow all your stock at the start you have nowhere to go if you get it wrong.

 

[Psl]

Follow TotallySport's advice and now you have to decide what amount to spend on stock and how much to retain in cash.

 

[Hex McGettigan]

Appreciate the advice. I agree that I need to make my own decisions on what way to use my limited finance.

Thanks again folks.