OK..now what?

[pamperme]

I can't get the loan for the amount I want..we are on plan B..I have a backup Angel Investor but was trying to not go that route...and I would have to wait about a month longer..ugh.

I want to remind everyone how important credit is!

We had some bad credit situations back in 04 (hubby went to school full time and we had very little income..bills got backed wayyyy up)..and they are taken care of now..but we have no NEW credit to show we are doing well..and we really don't want any new credit..so now I cant get what I need..which makes no sense...we chose to stay debt free until now and well I guess you are not allowd if you ever want credit again..no fair but anyways.....

If I want to start this biz I have to cut my loan amount in HALF....HOW in the heck am I going to do that??????????? I probably could but not sure if I want to cause that means

1. going to downtown location in plan B spot..1/2 the rent but 1/2 the traffic as well...but the plus is it has wayyyyy more space...which brings me to ....

2. I would have to cut my inventory a bit more...which is going to make the store look bare cause the store front is bigger..but there are AWSOME display windows

3. I will have to paint alot more to get it ready as well..over dark blue paint..ugh!

4. I don't know if this is a good or bad thing..we will be in less debt if we cut it in half..but I will be twice as worried about getting sales to cover everything..the first choice location is awsome..and in an awsome location.

I can make plan B work work but not sure if I want it to..

What would you do? :undecided

I dissapointed but we could always save up the $$ and do it in 2007 like we planned...I don't know what to do now.

[Ollivander]

Your in a tough situation - It depends on how much of a risk taker you are. Starting any business is risky - but you can control the amount of risk you want to take. Almost every business starts off shakey. I really don't have an answer for you - but just look at Bill Gates - started Microsoft from a garage.

[islandgirl]

Do you have any credit cards you can use??

If you do...

Take cash advance on them for the amount of $$ you need to get yourself set up. (Just check the fee's on these, some are more than others)

Then Transfer all your credit card advances to one credit card that has 0% interest rate.

(Make sure it is a card that you already have and know what kind of credit limit you have with them. Sometimes if you try to transfer to a brand new card and you have $15,000.00 you want to transfer, they may only cover you for a $5000.00 transfer since it is a new account)

It is a simple way to get a loan, you just have to be able to juggle the CC until you get some working capital from your biz.

This may also help improve your credit rating since you have not used credit in awhile..

Remember to transfer the balance again when the 0% runs out.

If you get good at this, you can get a loan with 0% interest!!

[Funky Monkey]

From what you wrote - that's all the history I have - I would suggest taking the time between now and the original date you had for opening (2007) and work on increasing your inventory and client base. I personally would rather open with more product available, then a smaller base. I'm sure this probably isn't what you want to hear (I would find it hard to hear too!) but it might be for the best?

Sorry if I was a let-down!!

Funky Monkey

[pamperme]

Well the credit card thing wont work..we have no NEW credit..and becuase in 04 we had bad credit while hubby was in school..there was just not enough income to cover the bills..even when I was working..they won't give us anything..we can't get a credit card or loan becuase we have no new good credit..makes no sense..how can we get good credit and repair credit if no one will give us credit..kinda like when you were 18 and you could not get even a gas card..lol..Plus like I said we DO NOT want any credit cards..period..

Now they want to give teens credit cards the minute they turn 18 cause they know the parents will pay it.

As much as this sucks... I am trying to figure out a way to make it work..going to have a yard sale and put a b&b table/candle table up with it..going to also check out the local flea market it is like $130 a month for every sat/sun..and you can keep you stuff set up..it is a HUGE flea market...and attracts alot of people. and the lady on the phone said they do not have any bath & body stuff in there..yippy!...just hate the idea of working full time job and then spending my entire weekend at the flea market..I will have no time for my family at all...also my Angel investor might be able to swing the 1/2 amount now..and in a month do the balance...I will have to talk to him and see what he thinks about it all. It might work out better that way anyway cause he will get the interest instead of the bank...and more than what he would for a saving account...

I personally want the better location...but if I wait it probably won't be there next year anyway..I am surprised it is still there now.

Gonna talk to hubby tonight and my plan B man and see what they both think is best. Since they will both be involved. I think I am going to have a big ol' pamper me party at my house and try to make some $$ this way also..I have some clearance stuff and odds and ends that I could sell off this way as well.

It stinks cause I only asked for less than what a new car costs nowadays.:undecided

[NancyJo]

If you choose store B (the larger one), is there any way you could partition it off by putting a fake wall to make the space smaller? That way you wouldn't need as much inventory so it won't look so bare?

Is the downtown district more offices? Maybe you could have some kind of lunch time special for office workers. Send flyers to the tenants of the buildings and say from something like 11:00 to 2:00 get 10% off.

[pamperme]

If you choose store B (the larger one), is there any way you could partition it off by putting a fake wall to make the space smaller? That way you wouldn't need as much inventory so it won't look so bare?

Is the downtown district more offices? Maybe you could have some kind of lunch time special for office workers. Send flyers to the tenants of the buildings and say from something like 11:00 to 2:00 get 10% off.

can't really break up the space it is actually broken up itself..into low cubicals type things which is neat..could do candle in one section, b&b in another and lotion bar in the big space..but when you first walk in there is an open space as well ..and small hall back to the cubical areas(it use to be a credit collection place or something like that)..I like the way it is set up..but the sq footage is just alot..plus a huge workroom and TWO offices.

was thinking of maybe doing some craft consignment to fill up the space..I dunno.:undecided I hate to get into all that again..lot of work involved. ..got enough of my own work. lol

I guess I could fill up space with big displays..I love to do that.. I am sure I could find some neat things to mess around with at some yard sales.. and I got plenty of crap in my basement I could paint or fauxfinish for displays.

Heck Chirstmas is almost here I could just jump right into that..lol..trees would take up space..and large wrapped boxes...HE HE..

I am doing a lotion bar area..do you think that I HAVE to have pluming in that area or maybe just paper towels and baby wipes..that would cut about $500 out of my budget.

We live in a Mill town so most of down town is bars, churches, funeral homes, and banks..and the not so great housing. There is a new state office building right around the corner and community center...and it is right across from a Dollar General ..which could be good or bad for my biz.

[lsbennis]

Hi Pamperme,

I'm a Real Estate agent full time and I do commercial and residential, all I can say is...

"LOCATION, LOCATION, LOCATION"

...a good location can make or break a new biz....is it possible to hold off until you raise more funds to get the better location, if it is not available when you are ready are there any similar locations in that area that may work just as well?

:undecided

[pamperme]

Hi Pamperme,

I'm a Real Estate agent full time and I do commercial and residential, all I can say is...

"LOCATION, LOCATION, LOCATION"

...a good location can make or break a new biz....is it possible to hold off until you raise more funds to get the better location, if it is not available when you are ready are there any similar locations in that area that may work just as well?

:undecided

see that is what I am afraid of..the location I WANT is awsome but double the rent...which is kinda scarey in itself...and requires a 3 year lease and downtown is a one year.

[lsbennis]

Pamperme,

Are you working with a commercial agent on this? If so do they have any statistics about traffic in the better location? What was the prior business that was there and did they do. Any traffic info that maybe you could compare to the other location. If the traffic flow is not off by that much it may not be a big deal..but you may also want to consider Parking, accessability, traffic patterns, does the good location die on the weekends and busy during the week? Can you negociate the lease at the better location? HTH

[NancyJo]

Just make sure about a 3 year lease. You said you cleaned up your credit (yeah) but if your name is on the lease and it needs to be broken, that could adversly affect your credit again. I am sure you will do great with the shop, but what if something happens health wise to you or a family member?

Do you have any outs with the lease, can you sublet if needed?

[barncat]

Are there any craft malls around, that you can make a mini store, or maybe rent part of seomones store who has some extra space. Maybe a small ghair salon would be willing to rent you space. Call your local Chamber and see if there is any other people looking for space too you could share. They might be able to tell you of any upcoming space that isn't on the market yet. My old building never went of for rent as word got around and was rented before we were out.

I was denied my first loan too. Retail is High Risk, especially if you can't show any real collatoral. I ended up using my mothers c/c to start the business, and here I am 5 yrs later with 3 businesses, and would love to start a 4th.

[pamperme]

Pamperme,

Are you working with a commercial agent on this? If so do they have any statistics about traffic in the better location? What was the prior business that was there and did they do. Any traffic info that maybe you could compare to the other location. If the traffic flow is not off by that much it may not be a big deal..but you may also want to consider Parking, accessability, traffic patterns, does the good location die on the weekends and busy during the week? Can you negociate the lease at the better location? HTH

no agent.. the 3 year lease does scare me a bit that is why we were asking for double what we NEEDED to open..for working capital..

the traffic flow downtown is busy BUT people tend not to stop down there as much as on the main street in the city....there is parking in both locations..both free..that last business that was in there was a massage therapy place..and they regret leaving and moving to a cheaper location...they were considering moving back into the space. I don't think I can negotiate the lease lower she already went down on the rent amount if we sign a 3 year..she said she might take another $100 off the rent if we do a 5 or 6 year..don't want to do that..cause in 5 years..my plan is to be in the best part of the city..where there is traffic constantly..where all the restaurants are etc..but that area of town right now is almost triple the rent of the space I want ..and for less sq footage..no way..not yet...the good location is right across from the biggest tanning salon in the area..and other busy stores.

POOH!

[Scent Cellar]

Just my 2 cents worth ... take the time to save the money you need and improve your products along the way. Get your products out to all your friends and neighbors and do local markets in the meantime just to get your name out in the public.

It is hard to open a business and make enough profit to pay rent and overhead without trying to pay back the loan at the same too. Work and save your dollars and when it's the right time to open a shop you will be more prepared.

I know this isn't what you want to hear but it is the only thing that makes good business sense to me.

[lsbennis]

I have to agree with Jan and Nancyjo...signing a 3 year lease without any back out clause written into the contract could be an issue for you down the road. I have seen quite a few folks go into business without the proper funding only to find themselves stressed and consumed with worry on how to pay the rent...not worth it in my opinion. With location being such a vital part of the success of your business it might be best to wait until you have enough money in reserves to get you through a year so that you have some peace of mind. From reading these post it sounds like there could be many other alternatives to build your business so that when you are ready you can really kick butt!!!!

HTH :smiley2:

[pamperme]

If I do my job in marketing and promoting my biz..and advertise I know that the downtown location would work..hubby just decided that this other location was the ULTIMATE and he is right but I don't think it is the only option..the plan b place was our first choice before we found the other one anyway...it was the first place we thought of when opeing the shop up...and there even with 1/2 the loan we would still have a full year of working capital.

We actually had to double our loan request becuase of the other location..should have stuff with our original options....and we might be open by now. darn it...MEN!

[lsbennis]

lol...that is great with the right marketing many great things can happen...I know you are going to be very successful.

[Chauna1]

Can you have a business at your home? If you have a small lot you might be able to get a small manufactured building and start with that. You would be suprised at how nice they are. Especially the ones with the little porches built into them.

Also a suggestion is to rent a small booth at an antique mall or as someone already mentioned a craft mall.

Maybe if you started out smaller you can work your way up without incurring to much debt.

Hope my suggestions helped somewhat.

Chauna

[andrealh1975]

You mentioned that you don't want any credit cards to help re-establish your credit, but how about this...Get a secured loan through your bank or credit union for like $1000 or something, that'll help a little with the credit thing. Also, how often do you shop at places like Target or clothing stores. You may need to bite the bullet and get a card for one of those stores. I did this and would have the cash, but would use my card instead. And the next day I would mail in some money. You can get a store card and set your limit to something farily small like $250, especially the clothing store cards.

[pamperme]

Well hubby and I talked about it..and if we are going to do this..we are going to do it right and if that means waiting until holiday season 2007..so be it..we don't want the downtown space..we want to be either in the busiest part of town or the main drag..soooo unless angle investor can do the whole amount before October we are not going to do it now.

gonna work on some pamper me parties ..and see about that giant flea market on the weekends..there is also a place downtown that is a consignment type biz for $10 a month ..plus 10% commission..can't beat that...plus it is for a non profit organization...they have a real cute shop...but not a ton of traffic..so that one is a big maybe...it is just real hard to work a full time job and have two small children plus do this..I feel like I am neglecting them.

I am going to get some stock madeup and take a stab at that flea market...hey if worse comes to worse..I am only out $130 right for a whole month...I gotta make at least that much in a months time :undecided

[birdieluvr76]

I think it is good you were waiting. Sounds like everything is not falling into place, and you certainly don't want to get into any lease trouble.

And, if you are going to wait, work on that credit. It can be done. I went through a bankruptcy in 2002, and very soon after I was able to get a credit card and start building credit. The rate sucked, but after working in fianance for a few years, I understood this was the way to start. Since then, I have bought a car, unsecured and been approved for a mortgage. You can do it, you just have to start at the low end. The loan through your bank is an excellent idea. Start there, pay it back and that will definitely help.

Good luck, and I hope it all works out for you. Just keep the faith and your fingers crossed

[sockmonkey]

Sorry things fell through for you. I know it has to be very disappointing for you. But, consider it fate's way of preventing you from making what might have been a mistake at this time.

Between now and sometime in 2007, you will probably be able to find more vendors and maybe find even better pricing on items--which will help you get more for your money and look better to the bank; and you can spend the time experimenting with even more recipes.

You never know, maybe something even better will come along in 2007, and you will really be ready for it then. It takes so much money to operate a retail store. You'll be much better off if you can open with at least a bit of a financial cushion in the future.

You should print out all of these replies and file them away and take a look at them sometime next year and see how you feel. I bet you will be able to look back and be thankful you waited.

[Funky Monkey]

I'm sorry to hear things fell through but it sure does sound like you are acting - not reacting (oh no... those self help books must of sunk in when I wasn't paying attention) This will give you time to build up your customer base. I totally agree about doing it the right way. Good luck to you. This extra time is going to really help you out in the long run. Besides, you can think about it this way... your products will be on the market for a full year (or so) before opening a storefont. This will give you some street cred.

Now that I've used the phrase "street cred".. I feel I must end this post with...

Word

(I so need sleep!)

[pamperme]

Sorry things fell through for you. I know it has to be very disappointing for you. But, consider it fate's way of preventing you from making what might have been a mistake at this time.

Between now and sometime in 2007, you will probably be able to find more vendors and maybe find even better pricing on items--which will help you get more for your money and look better to the bank; and you can spend the time experimenting with even more recipes.

You never know, maybe something even better will come along in 2007, and you will really be ready for it then. It takes so much money to operate a retail store. You'll be much better off if you can open with at least a bit of a financial cushion in the future.

You should print out all of these replies and file them away and take a look at them sometime next year and see how you feel. I bet you will be able to look back and be thankful you waited.

you know that is great idea..I still have my biz plan and these would be a great addtion to it..so 6 months from now I can see where I am at.

I have really appreciated everyones help in everything lately..it actually helped me grow in my biz and realize alot of things.. I learned alot and learning is always a good thing. ..darn wish I would have thought that way in high school..lol

I am not as dissapointed as I though I would be ..I posted this in another post..something better must be coming along..I thought I would be devestated and I am not..and gee I am even PMSing..

[Late Night]

For what it's worth, I think you are making the right decision too.

You might want to re-think the credit cards though. They may be a necessary evil. I have a Discover Card and I get 1 percent cash back. I know that doesn't sound like a lot but I pay my bills with it and gas and groceries and everything I'd usually pay with a check. I also make large perchases and clothes and supplies with it. But at the end of the year, I get a check for about 200.00 for paying for things I would have been paying for anyway. IE. monthly bills, gas and food. I always pay it off every month and I've built great credit by just paying my monthly bills on time.