Starting up our own business?
My friend and I would like to start up our own business together.
We are nearly 19 years old and both hate our current jobs.
We have a few ideas, but we are both rather hesitant in that we worry our age will go against us- being taken seriously, and with getting a loan.
Can anyone give us any advice?
How would we go about getting a loan once we have built up a solid business plan? Would we benefit from getting perhaps one of our older relatives involved (parent etc)
Any advice would be great.
You can start the business and depending on what it is doing will depend on the cash requirements. Getting a loan poses some problems for you and yes a decent business plan is essential. Having someone else involved that is credit worthy and has some decent collateral will help a lot, as well if they have business experience or knowledge in the field that the business is involved in.
Depending on the type of business and the product or service you could also look into government grants or some of their special small business loans. The grants are great as they don't have to be repaid. So look around into all aspects of this so you have an idea of what's available to the new business.
Get into a business you know something about and not just a little but a reasonable knowledge of the product or service you'll be providing. Information and knowledge will aid in other areas such as marketing etc. Be prepared to put in your own money and have a plan for keeping expenses low and not taking money out of the business for the first year (or at least a very low amount).
A loan requires good, LONG credit history, assets, collateral, and a down-payment of around 30% (yes even for a business loan). You can write the best business plan in the world, but if you don't have the above stuff you will be denied the loan, and since this is a start-up, they would want to see EXPERIENCE from you.
So unless your family is willing to cosign and personally guarantee the loan with their house as collateral, and also willing to give you $50,000 or more, you and your friend need to finish college and save your money then try this.