Which business plan is the best?

Question

I am purchasing a convenience store/bar for $375,000, and I need an additionial 75,000 for inventory/licences/insurance and working captial. Should I go with a SBA loan for the entire amount, or get a mortagage loan on the buliding and use the SBA loan for the other? I need to keep my payments as low as possible, because the business is seasonal.

Answer 1

Since you've never been in business before, I would strongly recommend that you talk to a business counselor before you do anything especially spend money. You have to determine whether you'll start a web based business or one with a store front. I'd call the local office of SCORE (go to http://www.score.org and input your zip code to find the chapter nearest you), the advice is FREE.

The counselor at SCORE will most likely advise you to write a business plan which is very good advice because it will force you to dig out all of the start up details and the costs of starting a convenience store/bar and force you to also understand all of the aspects of this business including the customers you'll concentrate on (your market ) and how you'll go after them.

The financial analysis portion of the business plan will give you all of the numbers needed to reach a conclusion as to the preferred way of financing the transaction.

You'll need to register the business with your state controller's office and make sure that you have any city and county licenses if any are needed where you live. All of this will come out in a business plan.
Try this link :
http://www.ychange.com/small-business-consulting-articles.html and read some of the articles especially the ones about a business plan and starting a business.
Good Luck

Answer 2

If you do a search for SBA LOANS you will get a lot of replies on the Internet from all kinds of lenders. The idea behind these government loans is to help small business people. The other lenders are helping themselves for the most part which is OK. It's a part of our culture. Now how about 1 more piece of advice. Call you local library and see if they have a SCORE group there. This is a group of retired sometimes small business people (sometimes corporate types) who are near where you live. If you are starting your own business wouldn't it be good to have a mentor who is right there where you are, to talk to on those nights when your confidence levels are slipping and you need an experienced friend. Try it you will be surprised how good it can be to have someone with a bit of experience just a phone call away in the same town! If I'm not mistaken there is a limit that is a lot lower than what you might be looking for on this loan on the SBA. Check it now! So you have the options you need later! Good Luck!

Answer 3

I would hire a good local CPA and get advice. Take the CPA with you to the SBA office.

Answer 4

Hi My name is Gina and I am the owner of Shop our secret and would like to let you know we sell whole sale products for cheap to you so you can sell to your customers and make a great profit. If you are interested I have some products on a myspace page to look at its myspace.com/shopoursecret
we have alot more then what on there and they are at whole price I sell lower then whole sale on most items. On your question I would go with what I feel best with you never want to do what others say on that because if soemthing goes wrong or payments are higher then you like you will be angry with them choose what you feel good with you will know.