/biz/ - Business & Finance

if you have started your own small business, what percentage of the required assets had to come out of your own pocket to pay salaries, day to day, etc? do you recommend the way you did it?

Son, all it takes is a little elbow grease. You don't need a loan

>>10366618
what if creative solutions arent available as i need to create an asset using capitol? im sure that there a traditional all american small business startup has required financial assistance to begin before

>>10366597
You should be able to tell me how you would spend every last cent of it before asking for the loan if you must. Understand there is a certain lense I am examining you under because you require a load to make a cent without me apparently. Totally larping bit this sounds legit enough to post since this board has been shit lately

>>10366666
yes that seems correct. i assume i would need to go to someone with a completed business itinerary or whatever it would be called. this would list all expenditures of the expected time period as well as what would be gained through the funds. as well, expected repayment techniques would be given and in what timeframe.

who would i go to with these materials though? a bank? what actually is a venture capitalist and would they assist on a venture that is asking for less than 1mm?

>>10366597
I have no idea about your situation, but If you have some form of income and assets, a bank may feel more comfortable in lending to you.

This is because you'll be more likely to make periodic repayments of Interest+Principle, and the bank could use some of your assets as security on your loan. So if you end up defaulting on your loan, they can take your assets.

>>10366695
i have heard that for mortgages that having more collateral will allow for more generous terms. this doesnt apply to student loans though as far as i know? nearly anyone can apply for a student loan and receive one, no collateral down? would this also be different for a startup startup business loan?

>>10366597
Grow mushrooms. Start you own mushroom growery. I’m gonna call my company “Steve’s Shrooms” cause my name is Steve :D

Everyone loves mushrooms. My friends call me the mushroom man.

You can sell organic ones to hippies at farmers markets

You can sell morels to expensive restaurants

You can sell cubes to druggies

Literally costs nothing to grow too

I’m gonna retire off of mushrooms

>>10366763
basically me. i have an idea i think works and that will be profitable long term, however i need funds to purchase the prerequisite items. my fertilizer and mushroom seeds, if you will.

>>10366737
The safer you make a lender feel, the lower the rate of interest they'll charge you.

I'm unaware of no collateral loans for small businesses, especially if you're literally starting from the ground up. But there's no harm in going and finding out.

>>10366788
and going and finding out would entail what? going to a bank and sitting down with someone? is there an aggregate website somewhere that i havent found that lists the possible options one has for starting a small business?

>>10366763
My friends in mushrooms are converting their mushroom factories to (almost legal) weed.

>>10366737
Student loans can't be defaulted on, your future income is your collateral

>>10366691
>who would i go to with these materials though? a bank? what actually is a venture capitalist and would they assist on a venture that is asking for less than 1mm?
You're not looking for VC money. VC money is multi-million dollar deals (at least it is *now*, wasn't so five years ago).

You're looking for business angels / angel investors, and perhaps, not even that.

To answer your main question, the traditional funding route for new startups:

>Friends
>Fools
>Family

>>10366787
> mushroom seeds

That’s not how it works Anon. That’s not how it works at all.

Who do you sell to btw? I’m just doing some in person networking it’s hard but I feel if I can get a good distribution network I’ll be set

>>10366806
Yeah, go walk into a branch, or call a branch and make an appointment. Ask them about small business loans.

>>10366691
You haven't even done a quick google search to find the Investopedia definition of venture capitalist and you seriously expect someone to plonk down 1million for your company that you haven't invested a cent into!?
DEAR LAWD!

>>10366809
sorry i dont actually grow mushrooms, i work in education. i was just using it as an example

>>10366808
3 F's also sounds pretty normal. its a shame that theres no institutional help towards the creation of new small business like there is towards industries.

>>10366822
hm ok, this sadly sounds like my best option

Family and friends, your own money, some schmucks you know, and maybe a bank loan.

>>10366852
Make sure to ask about anything you don't understand as well, nobody's going to judge you. Banks are aware that not everyone will have large amounts of financial literacy, and you don't want to get involved in anything you might regret.

>>10366828
no im specifically asking here because i have done light internet research on the idea of financing a small business. sources such as investopedia do not go into any detail of even "generically" specific start up situations. im asking here for specific examples of what /biz/ has gone through or if /biz/ has any more indepth experience from their individual situations

>>10366852
>3 F's also sounds pretty normal. its a shame that theres no institutional help towards the creation of new small business like there is towards industries.

Depends where you're located in. Where I've lived, governments LOVE helping small businesses. It increases their tax base and future income at quite low risk, you see.

>>10366888
where did you learn that governments help? i assume yours has specific programs that you found online?

>>10366883
If you want specific examples then you need to give specifics over what your business model is - the point is your question shows your ignorance
>is there an aggregate website somewhere that i havent found that lists the possible options one has for starting a small business?
That shows how little research you've done. You should be like:
"I want to create X consumer/B2B.industrial product selling over Y platform, I have my price-point which is in the range of number to number (anything higher is untenable from a market point of view - but I next need to do interviews and qualitative research). Is this the kind of thing that *insert name of venture capital firm that has already invested in this industry* or maybe would I be better off *list established company who may want to invest in this idea, specifically because it could cannibalize them*"

At the very least nail it down to a industry and how much capital you've calculated on a napkin you need.

>>10366943
thats all information that you would give to interested parties though? or is the industry of venture capital so nuanced that to even find the proper channel one should release the white paper to a nepalese basketweaving website? i do know the traditional route that businesses such as mine typically take, however my government is cracking down on these channels through harsher regulation

>>10366763
I used to grow mushrooms. Fungi differs from plants like this:

Any fucking retard can grow plants but it takes someone smart to grow quality produce.

Mushrooms either work or they don't - there is no grey area.

Contaminates are your mother fucking enemy. You need to have a designated area that is up to lab spec basically or you risk all sorts of bullshit growing in your medium.

>>10366916
So, I've lived in a few places around the world (US/EU). First thing you do to find that out is contact the local chamber of commerce.

You're not the first to ask this, you're not the last, the chamber of commerce has tons of relevant info on running and funding a new business, so start there.

Government support for new ventures varies, but in the last few places I've lived, they had plenty of resources available for new businesses to use (Eesti Arengufond)

What you learn (mainly by watching) is that only the unprofitable businesses get government money, everyone else gets angel funding to better terms on the free fucking market

>>10366597
What is the business you’re going to do first i might be able to help

>>10367007
interesting, thanks for the replies. i figured there was a typical way that people have gone about starting a new business, i just do not physically know anyone who has done so

>>10367018
im starting a teaching business that will eventually go public through an ICO. i dont really want to go into specifics with randos on the internet just yet. im a boomer who doesnt trust the intertubes.

>>10367021
Depends which field you're in.

I do IT consulting, so "starting a business" was really cold calling people* and finding out what they'd pay for.


* that's what everyone tells you. in reality it was about reaching out to the business owners you already know who trust you...

>>10367049
interesting. so far ive found that my future profitability relies on my ability to cold call the product as well, which is fine. i just need right now money to polish up the product,

i havent completely determined interested customers just yet, but thats basically the step im on, since investors would want solvency to be pretty clear. which again is why im asking the question, what information would investors want before they are willing to loan. i feel like the thread has fairly successfully answered this question

>>10366649
Since when are those of us in our 30’s boomers? I’m 38. My parents are boomers. I’m gen x. Prove me wrong.

>>10367094

>>10367093
>i havent completely determined interested customers just yet, but thats basically the step im on, since investors would want solvency to be pretty clear. which again is why im asking the question, what information would investors want before they are willing to loan. i feel like the thread has fairly successfully answered this question
Note that current profitability doesn't feature among the major criteria used for analyzing that.

More about net present value of expected future profitability.

>>10366597
How much money are we talking about, and how much is going to pay you.

>>10366609
>salaries
Hah, I paid cash to people with real jobs. I couldnt afford real workers to start. giving people 5-10 hours of side work is a good way to get off the ground with out being responsible for full time people

>>10367107
Literally only on 4chan and only recently has gen-x suddenly been lumped in with Boomers. Its makes no sense.

>>10366618
I fucking love the boomers meme man