I want to open a new bass shop!

Melvin7822 · #1 06-02-2006, 03:38 PM

I have a great desire to be the next Bass Central, but the problem is funding. I won't qualify for a business loan. Does anyone know of any government business grants that exist for anyone wishing to go into retail?

Melvin7822 · #2 06-04-2006, 08:23 AM

::bump::

mmg · #3 06-04-2006, 11:23 AM

I'm a teen, so don't think I'm an expert, but both my parents have started similiar businesses and sold them off after a year or so of running it and this is what I hear about it...

There are so many small businesses starting up everyday that look for loans and the banks know that a lot of these businesses fail. The trick to getting a loan is not about selling the venture capitalist an idea, you should be selling them something concrete. This essentially means that you should have done all the developement work first, which requires your own money most of the time. In my parents' cases they would do all the website developement, get an inventory and open up shop online and then wait a year and so many sales later to ask for funding. They say it is better to come into a loan office with a bunch of pie charts and graphs labeled "quarterly sales #s and expenses" rather than "expected quarterly sales #s and expenses." Sadly though, a lot of entrepeneurs don't have the kind of dough to pay for all that stuff and put all their spare time into it before asking for money. I guess it sort of weeds out the ones who aren't completely invested in their dream, and these days that seems like what you need( or a lot of money.) Essentially, loan offices want to fund businesses and not potential businesses.

Hope that was helpful, my mother runs an Italian villa rental site and has gone through this whole process recently as well as with other businesses. Sorry if I wasn't helpful.

Melvin7822 · #4 06-04-2006, 11:29 AM

I could imagine how much money that would take to fund an inventory on your own. But I do understand what you're saying though.

I was kinda hoping there were government grants available for a retail venture.

**MAJOR METAL** · #5 06-04-2006, 11:58 AM

From what I understand this is a very hard buisness to be in, I would sugest talking with someone who has been in it for a long time.

dumbassist · #6 06-04-2006, 12:18 PM

try asking jive1...from what i know...he just opened a bass shop... im not sure if he just opened or if i just discovered his shop... oh well...

jive1 · #7 06-05-2006, 11:27 AM

Government grants don't exist that I know of, but loan programs are. But, seriously think about things before you take on a loan. Have a solid plan for paying it back, and make sure that you have assets to begin with before taking one on.

Like student loans, the funds come from private institutions, not the government. Those lenders are called 7a lenders, and you will have to qualify for their loan and pay interest like any other business. A personal loan and a business loan have different requirements for qualification, so you'll have to look into the options if you're going to go this way.

The other thing is venture capital, but many times it will cost you equity in your business, as well as control. There's no free money for this kind of thing.

Go to www.sba.gov if you are serious about this. There are resources that are very helpful for this type of thing. They also have a program called SCORE. It consists of retired execs who volunteer their time to help people begin small businesses. You're paying taxes for all this, so use it.

This type of business is not a great business for starting on a shoestring. The overhead, inventory, and other expenses can be pretty staggering for a niche market.