Anyone know how to go about getting a loan to start a business?

8

87grandnat

Active Member
Joined
Oct 14, 2003
Me and my friend are strongly wanting to open up a sports bar in a shopping center in out city. Does anyone know what we will need to do or what steps and options we have when it comes to trying to get funding to start this up?

Thanks for any info,
Joshua
 
And this would be from a bank...I have heard its impossible to get a loan from the government. Neither one of us have much money so we would need a pretty big loan (I have figured around 250k) I have decent credit for what it is worth but was just looking for some insight from some buick brothers that have started a buisness of there own.

Joshua
 
Collateral on your part and your partner. Thats what it took to start ours 8 years ago, as well as an investor that was willing to put the money down really helps. It isn't very easy. I could have never done it on my own. Ours turned into a family business. Without a large sum down or alot of equity built into whatever you are using as collateral, it's just hard to get a bank to loan you what you really need to get everything started. Well at least that's what I found on my end. But maybe there is an easier way.
 
87grandnat said:
And this would be from a bank...I have heard its impossible to get a loan from the government. Neither one of us have much money so we would need a pretty big loan (I have figured around 250k) I have decent credit for what it is worth but was just looking for some insight from some buick brothers that have started a buisness of there own.

Joshua
Click to expand...

You better find a wealthy investor.

First thing you need is a good business plan! Have you written that out yet in detail?

Ty
 
Do you have any collateral? Own a home that has more value then the loan?
If not, it will be pretty tough to be honest with you. Banks have tightened up severely right now.

You best bet is to try and find private money, someone looking to invest for a piece of the action, but does not want to have anything to do with the day to day operations. Have you drawn up a business plan?
 
You need a Great business plan. Not a good one, a great one. The bank only want to loan money to the people who don't need it. Make sure that you don't "need" it...

There are also other resources such as SBA and the groups of retired professionals ( I can't recall what they're called offhand) but they can also provide so guidance as well.
 
I dont have a full business plan yet.....I will before approaching a bank, but from what you guys have said I am gonna have a hard time. I am 26 and do not own a home or anything (I have a 03 jetta thats paid for if that wil help:smile: ) and I could probably come up with about 10 grand so that means I only need 240k more...well if I have the time I am going to go to the bank and findout any kind of info I need to try to get a loan. What is Loanshark? is that a joke or somewere that does loans?

Thanks,
Joshua
 
87grandnat said:
I dont have a full business plan yet.....I will before approaching a bank, but from what you guys have said I am gonna have a hard time. I am 26 and do not own a home or anything (I have a 03 jetta thats paid for if that wil help:smile: ) and I could probably come up with about 10 grand so that means I only need 240k more...well if I have the time I am going to go to the bank and findout any kind of info I need to try to get a loan. What is Loanshark? is that a joke or somewere that does loans?

Thanks,
Joshua
Click to expand...

Without a business plan you need to explain to the penny WHY you need $250K!!?? Is that a shot in the dark or what.

Not trying to be rude you are a LONG ways from even asking about a loan at this point................

Also running a bar/restauraunt you are MARRIED to it all day everyday. I am sure as young blooded males we all wanted our own sports bar of some sort. But it is a HASSLE!
 
Listen to these guys, so far they are correct on a detailed business plan. also check your with your city economic development people. They have low interest loans and it
breaks up the banks liability. They will loan $ on your ability to create jobs. and they will usually take a 2nd position. So the bank will feel better. Get all the cheep money you can. Some of your equity can be from the sweat variety but if you can't or won't put anything or everything you have into it. They figure why should they give you any funds. Always start with the least amount of overhead possible and don't underestimate the amount of cash flow you will require . Most business fail because of this.


Or just find a rich girl and forget it.
 
87grandnat said:
Me and my friend are strongly wanting to open up a sports bar
Click to expand...


Key word= BAR

Good luck with that one, might almost forget the loan which wouldnt happen because of it being a bar, but lets say its a go...you call on the license yet? big cash for that liquor license im sure...pay off the locals, if theres a bar too close to where you want to put yours, that owner might be best buds with a city official which would shut it down before it got started, then figure the insurance...holy moly

its all a racket..sad but true, around here most small pubs are owned by retired cops..prolly cause they got connections. But i would love to have owned a cool lodge where we brew our own..hell i think thats everyones dream eh!

I always say follow your dream but there is a pessimistic side of me when it comes to this biz

but what the hell like above post...get your game plan and costs on paper, then talk to the city, take it to the bank and beg and if it works then have car show and we'll all show up!:biggrin:

good luck
 
I have owned several successful businesses over the years. Only after I had established the businesses was I able to borrow money for growing the businesses. Be assured, if you don't have business collateral, banks will not give you a business loan. You might be able to swing a personal loan if you use your house as collateral. No bank is going to give a young person large sums of money to open a risky business. Sports bars are considered one of the riskiest business startups.
I don't mean to dampen your enthusiasm, but that's been my experience.
 
Yeah I know most privately owned businesses fail but I am positive this would work, I guess I need to work on a plan to show the bank or whoever we would try to get funding from. I have no problem working day and night to make this work and neither does my friend.

Thanks for all the info,
Joshua
 
Joshua,
Banks are not interested in business plans from people who don't have business collateral. Call any bank ask for the loan department. They will confirm this.
 
I got you, I could save up the money (I am a truck driver and have no bills besides a credit card which I am working on) but it would take me awhile to do, I was figuring maybe if I saved up 100k the bank would loan the rest since I dont have any collateral? I am a co signer on my mothers house but its only been paid on for about 3 years so there is no collateral.

Man this sucks wanting to do something positive that would change your life and you cant because of money,
Joshua
 
dont forget, the bar biz is a racket...period even if you had a buttload of cashola you got to get it past the city and all the cronies.
 
Well I live in Arlington TX and the place is right by were they are building the new Cowboy stadium, there is a Winghouse and Hooters about a block down the street. This place was a bar called Box Seats but it was closed because they got caught like 3 times selling liqour to minors. The location is excellent I have already look at the lease price and it is pretty high (16k) and a liquor license which my friend would have to get because I have a felony (7 yrs ago....changed man now)

I used to be a shot guy at Labare (no one laugh) for awhile so I have a soso understanding about the bar business. Finding out pricing and what not wouldnt be too hard, but putting it in a detailed business plan would be a different story, this is a pretty big place, 4300sq and would employee about 10people, it had a patio and everything....very cool spot

Thanks....keep the info coming
Joshua
 
I was thinking he had some collateral... $10k is fine but not nearly enough. The bank is in business to loan money with an acceptable risk. You need to have more money than what you've got right now...
 
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