Sure, we are looking to build a sports bar/restaurant in the greater NYC area. We think we might have nitch b/c they are developing the area rapidly for various reasons, and are putting in various forms of entertaiment around including many apt. units.
I doubt the SBA would give you 2-3 mil. I think your best bet is, to collect as much as you can from investors (say about 200 or so) then approach the bank or an investment firm with a very solid business plan. With good credit and equity, you can get that loan. Im roughly on the same path, done a few smaller projects, yet it just gets a lot more complex the bigger you get. I think the key thing here is if you have done any kind of business or are currently running one that helps a lot in the approval process.
I agree. That is a serious investment for the SBA, I'm sure you'll need some private investors. Does anyone have some advice on finding wholesale prices? Any online resources where I can find more info would be cool. Any good message boards, etc where I might find some help?
Start thinking about a legal structure because that will most likely need to be done before you even go to a lender.
There is a whole hell of a lot that needs to be done before you ever even think about approaching a lender, legal structer among them. It should all be clearly laid out in your business plan which means it should either be in place already or be outlined clearly as to what it will be when in place. I'm pretty sure before you actually GET any money it should be in place, but to make the pitch is that necessary? Solid business plan Cleaned up/good credit Great presentation and attitude
I'm in the legal field and know just a little about starting a business, but if you're incorporating, the corp entity will have to sign loan agreements, etc.
I wasn't challenging you! I only wondered if in order to approach any potential investors (from a bank to father in law) you must have the legal structure in place. I take this as a big yes. Thanks.
Oh! no. That came across wrong. I meant, I'm in the legal field and really don't know much about the business aspects of it (mainly the legal aspects). Sorry, sloppy writing on my part.
It's cool! and Hmm, after reading this I don't know if you can answer some of the questions I had in my pm I just sent you. Hopefully you can, though. All advice and help at this point is invaluable for me.
No. just the stupid list of stuff to do, info to request, problems to work out never seems to get smaller. In fact, it just keeps getting bigger.
Yes, referal type business. Total crap. The forum is basically a bunch of people looking for the same thing, ways to make money off of others, however, the majority of the posters are quite informative when it comes to anything financial. So its a good place to ask questions and see what they think.
Quick update: My analysis is really starting to roll along now. Finally finding reliable wholesale prices and alot of other "numbers" info that I need. I still don't know how long it will take from this point until I start the ball rolling towards actually launching, but I feel I am alot closer as of today. I'm also getting a better bead on just how much start up capital I need. It is less than I had originally anticipated, but still a whole lot of dough for somebody who doesn't have so much to start with. back to the grind.
Hey now. Had a nice hour and a half long chat this evening with a rep from a major distributor. Got lots of questions answered and loads of good advice. And the ball picks up a bit more momentum. yay!
I always heard when it comes to planning a business, etc always expect on unexpected costs, as they almost always creep up. It is better to assume this, than get caught off guard. Just dont get a false sense of security. just my .02..
Yeah. Managing your capital is pretty important in this respect. IOW, don't invest it all, keep a good bit of cash in reserve to help out when these situations jump up. Good planning, thorough research, etc. Hopefully will keep the suprises to a minimum, but I do expect "challenges" now and again.