Financing your business

On my past blogs, we discussed restaurants,manufacturing, retail, etc. Maybe, today,we should look at financing these businesses. I have seen a lot of start ups using credit cards. That could be 15% to 20% money. Very expensive indeed! To know what you will need, you must create a business plan. This is a break down of what your business is, where it will be located, what it will cost to start, and/or keep it running. You will need a break down on cost and a use of funds (what you need the money for). All this is called an Executive Summary. Any bank  or commercial lender will ask you for this. One of the most important parts of this summary is how you are going to service the debt (pay off the loan) and are you experienced in the business you want to start. This is your" business plan", do this first! Now that you have gotten this done, what's next? Where to go for money. At one time your local community bank was the place to go but not today.  They are under government scrutiny, only the very best qualified borrower can get money. This means great credit(750+ scores), a large bank account (5 to 6 figures), plus a lot of assets. Getting money has become very tough. A better place to go is a commercial lender or broker who specializes in this type of lending. There are government programs to help. SBA,( small business administration) insures loans made by these commercial lenders. 504, 7A, etc. are some programs. These programs have better terms and are easier for you to live with. I have worked with them for 30 yrs. I can help get you set up. I hope this helps.


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Your Business Guru
John
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Monday after Thanksgiving, wow! glad it's over. All that food! which brought me to today's subject,The Restaurant  business.Your a great cook,you always wanted to be in the business. What do you do? Where to start?Things you should know. 95% of all start up restaurants FAIL!  why? mainly because of lack of money, poor site selection,wrong menu for the area,and spend to much on the interior and not have enough money left to advertise and market to the public,the MOST important thing to do.Remember," it all starts with the sale."I don't care how good you cook, if no one comes in , you lose.What's important? site selection,size of restaurant, size of menu, cost break down on food costs, insurance, interior furnishings. How fancy do you want to go? What hours do you want to be open? Do you look at a franchise or go it alone. A good franchise will help you succeed better than alone. Which franchise?  Boy, the questions never end. I spent 15 years building and renovating  restaurants, my partner has been in the restaurant operation side of the business for 30 years.There is not much we don't know. need help? send me a note.
your business guru
John

business knowledge

Our last blog was on regulations in business, in the ,"what to do when looking to start a business”. Today , we are going to talk about ,knowing business. I owned a cabinet shop in the early 80's, had 40 employees, some left to start their own companies, they failed, came back. Why? Knowing your trade is just part of running a business.( and by the way, i cannot build a cabinet!)You can build cabinets, but can you figure out how to sell them for a profit? Do you know how to figure out the overhead of your company? Do you know how to buy raw materials at a good price, and establish credit with the wholesaler? Do know how to negotiate a rent lease on your factory. Building the cabinets in just a small part of owning a cabinet company. This works for any type of business.Manufacturing,retail, service,etc.

Ask yourself these questions before you spend any money. Not sure what to do? email me. I will help with general questions, need more, We can work out a consultant agreement, this will be the best money you ever spent!

see you next time

Your Business Guru

John

starting a business? what about the regulations?

This is my first blog,a little about me. I have been in business for 40 years. I started in construction in N.Y.. I made it for 17 years,(tough business in N.Y.) went to Florida, started a manufacturing business, sold it after 9 years. Bought a 16,000 sq.ft. warehouse/office building, have good rental income. went in to the mortgage business in 1999, had a radio show for 6 years, got a lot of loans. got out in 2010.
I have seen people go into a business without checking out all the short falls, they LOOSE!
THAT'S WHY I AM HERE!
ask your questions and maybe i can help.I will give you free general advise. when i have to do all the details, their is a fee.
Every business has different regulations,check this first. did you know in Florida a interior designer needs a license? If you go into the food business, there are Fed. regs, state reds. local city regs., etc.. all cost money, from YOU.
We will have different subjects each week, stay tuned. leave a comment.
John