Asked by:

stun99

Seeking investor to launch Hummus and Cheesecake line

Syracuse, NY

Question: where else can i look for funding

Posted 06/17/2010 at 10:20 PM in Financing Your Business

hello i have used all my money at this point,have been turned down by at least five banks my credit score is not the greatest i am employed,i have also tried the sba and micro lending everyone turned me down short term pay day loan is not an option because the dont give more than 300 i need five grand to really get going where else can i try for that kind of money  for maybe a three year loan any suggestion will be helpful

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Answers [5]Oldest | Newest
My guess is that you are seeking too little capital to interest anybody.  How far will the $5K take the business?  If you are pursuing a loan, will the $5K make a meaningful difference to the business such that a lender would gain comfort that the loan can be repaid?  If equity, will the $5K result in a meaningful increase in company valuation such that the investor may conisder it worth taking the risk? 


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Bart has 62 Answers and 621 points



As Bart suggests, $5K isn't a lot of money to start a business, but when I was younger, I started with less than that.

Think about who would benefit from your business.  That's where you will find the most likely sources of capital.

If you are looking to start a Hummus and Cheesecake line, who will your customers be?  Why do you need money?  If you do need money, what will it be used for?  Rather than buying equipment or other items, can you borrow or rent what you need?  Can you convince suppliers to give you what you need on terms?  (Remember, if your business takes off, your suppliers will benefit from your growth.)

A creative option that I suggest to all entrepreneurs is to BUY an existing business that already has some reveneues.  If the business is barely breaking even, you can often get in for very little money.  The seller will accept payments over time.  Because the business has a track record, it might be easier to find investors or even secure loans.  You could even find suppliers and customers who would like to own part of your business, if they thought it would guarantee more income for them.

Think about your goals.  There are lots of ways to make things happen, even with no money at all!




 

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Dan has 238 Answers and 1339 points



Just learned about Kickstarter - see  www.kickstarter.com

Kickstarter is a funding platform for "creative" projects, primarily those invovling artists, filmmakers, musicians, designers, writers, illustrators, explorers, curators, promoters, performers, and others to bring their projects and ambitions to life. Project creators inspire people to open their wallets by offering products, benefits, and fun experiences.

At least one cooking/food busienss is making use of it.  See http://jan.ocregister.com/2010/06/22/startup-uses-internet-to-raise-capital/40057/



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Bart has 62 Answers and 621 points



Also, don't forget about http://www.Prosper.com for small loan amounts.

 

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Dan has 238 Answers and 1339 points



I work with teens who often start businesses with less than $100. Let's not forget about social capital, intellectual property and leveraged credibility. Focus on abundance not lack and WHO not HOW.

Having said that, great suggestions by all. I would also suggest

www.indiegogo.com It is similar to kickstarter.com

What I like about indiegogo is that you can keep the money that is donated to you even if it is not 'the goal' you established persay. You can presale products, raise money for your social cause, project or creative endeavor. I think you have to start with a small project and focus on doing that specific thing to get cash flow. Another way to raise money is offer something - consulting, workshops, training? Instead of running around asking to borrow money, go make it. You are an entrepreneur after all! Let's get it.


Shonika Proctor

National TV Business Commentator
Pioneer of Teen Entrepreneur Coaching
Twitter: @TeenBizCoach

Keep it real and keep it moving.....Continue to empower yourself and others by 'expressing yourself' in the community :-)
Teen Entrepreneur Blog

 


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TeenBizCoach has 120 Answers and 1136 points