Finance advice.

[supafly1]

Hopefully someone can help me with regards to informing me the best way to go about acquiring finance to start my own business, What i am wanting to do is start up an auto shop, specializing in performance modifications as well as maintenance and body kits. The problem is we have all the experience, a great team just lack the funding. putting together a business proposal now and hoping to approach my bank with it.

Many thanks

 

[D3x!]

whatever you do, approach all the banks. Don't just go to whichever bank you are with.

 

[HavocXphere]

At that stage, banks & share capital contributed by partners is the only way to go.

You could try a business incubator, but its a long shot.

 

[ozziej]

Make sure you got your ducks in a row before you go to the banks. They are not interested in someone coming to them with a half baked plan. Get a good business plan written up.

Try and do things like:

- Competitor analysis (how many other people are doing this in your area, in the province, and nationally), what do they charge, what will you charge?
- Estimated income (if you have people that have bought from you before, perhaps on a part time basis - give this as proof of the income)
- Estimated monthly expenses (make sure you take all things into account, staff costs, rental, electricity, cost of supplies, telephone, delivery charges etc etc) There are often hidden expenses like cleaning materials that people forget about.
- Marketing budgets (how are people gonna find out about you?)
- Have you got supplier agreements in place yet? You cannot run a business selling a product if you cannot supply the product.
- Initial cost of startup, what do you need to get going, how much stock, salaries for the first 3 - 6 months.

 

[Freaksta]

There are many sources other than banks, will try remember to post tomorrow!

 

[supafly1]

Thanks guys, busy getting all my ducks in a row now to start compiling my business plan and strategy.

 

[riverdusty]

One of the best ways to get financing (but be very careful) is investors. You can contact some performance parts suppliers and get them to invest in your business. Investors can sometimes lead to problems so be weary.
Other than that, the comments above are spot on. Nothing more to add.

 

[danlr]

supafly,
A good starting point is to register a company, get all the statutory docs registration etc in order and only then to approach the banks. This show you are serious and are committed.
I you pm me - I can give you more detailed guidance and point you in the right direction.

 

[supafly1]

Thanks a mill guys, danlr, will most definitely pm you as soon as i get all my ducks in a row, applied for my pty yesterday and must getting all costings together so i can put it into my business plan.
I really need to do this, cant imagine how great it will be to be doing something i'm so passionate about on a daily basis.
Thanks a mill,

 

[supafly1]

What would be a better option, putting a business plan together for the business we are wanting to start, or approaching the bank to buy an existing business in the same field and our intentions on how we intend on expanding services and market.

 

[danlr]

Difficult one - it depends on the company you want to buy, what the bank thinks about the industry etc etc - there are quite a few variables, especially when you buy a "presumable" small/small-ish business.

If you want we can have a quick chat - I can give you some idea of what things they would considered / questions etc, rather than writing a thesis here. If I have some specific info I can give you the shortened version