Funding At 16?

[Daniel_Geo]

Hi,

My name is Daniel Geoghegan, you may have seen me posting in other parts of the forum about my business MotoBB (www.motobb.com).

I require funding to get my business fully established but being 16 this is a near impossible task, everybody just tells me to comeback in 2 years time when I'm 18. If anybody could look through what finance I need below and tell me if they could suggest somebody who could help me out I'd apreciate it;

A few weeks ago I launched my online business, MotoBB (www.motobb.com), which contains a directory of bed & breakfasts/campsites located near to UK motorsport circuits. And, for every booking made as a result of MotoBB, I receive a 5% commission fee.

I was inspired to create MotoBB after being taken to Rockingham Race Circuit, to see the British Superbikes, by my father for the first time last summer. In the week leading to my visit I noticed the difficulty my father was having trying to locate a bed & breakfast near to the circuit and that was where my idea was born.

The feedback from motorsport fans and business advisors alike has been good. Motorsport fans have said they found the site very useful whilst business advisors rate the idea highly as I'm plugging a gap in the market.

This is were I need financing; I need to fully establish MotoBB, eg. advertising, firstly, to increase awareness of MotoBB and secondly, to establish MotoBB as a good foundation for my future business objective of building a chain of bed & breakfasts near to UK motorsport circuits. I've researched the costs and below you will find a rough estimate of what it would cost to establish MotoBB:

*Advertising in relevant publications: £340.00
*10,000 leaflets: £200.00

*Total: £540.00

Kind regards,
Daniel

[Statler]

Hi Daniel,

Have you been to see the Prince's Trust? I know that sometimes they used to provide 'Marketing Grants' of around £250 to young people.

[Daniel_Geo]

I have just been speaking to them, they will only help those aged 18-30. To qualify for a grant from them you have to take on a loan which requires you to be 18. Very frustating!

[Statler]

I had a feeling that they were no longer offering such grants to people under 18.

Is it at all possible for a family member to perhaps take out a personal loan, and for you to give them the money for repayments?

[Daniel_Geo]

It would have to be the very last option to get a family member to take out a loan as it is something they are not keen to do.

[Elleis]

Hi Daniel

At 16 it is almost impossible to get finance. Becasue you are not yet an adult, you cannot be held legally responsible you don't pay back a loan. For this reason most lenders won't take a chance on you.

2 years can be too long to wait if you have a good idea, there is always the chance that someone else will get there first so I can understand why you are keen to get started.

I would suggest you focus your energy on raising the funds yourself. I am not sure if you are still in education, but even if you are, summer holidays are nearlly here - could be the perfect time to get a part time job.

If you think along the lines of minimum wage (£3.80 approx) that would mean you would need to work 142hrs to meet your target. You would be surprised how quickly this time goes.

Another alternative you could consider is trying to find a business partner. If you could form a partnership based on you providing the idea and them providing the funds, you may be able to get started more quickly.

If you show the commitment to raising the funds yourself it may prove to the sceptics just how determined you are. It will also hold you in good stead when if you need to apply for further business loans in the future.

Best of luck and keep us updated with your progress.

[Daniel_Geo]

Hi,

Yeah I'm currently in full time education, just two more GCSE's to do, then I'm moving onto 6th Form College at the end of the summer. So I'll certainley look into getting a summer job, I finish school on the 28 June, so between then and the 7 September there is plenty of time to earn some cash!

I like the idea of a business partner, it is something I have studied as part of Business Studies and I can see its numerous benefits, eg. more creative input, but where would I find somebody prepared to team up with me and provide funds? What would the terms of it be also, eg. would they get 50% of the profit?

Thanks for your help and support so far,
Daniel

[Elleis]

Hi Daniel

Finding a business partner involves sharing your hopes of running your own business with as many people as possible. This is the only way you are going to find a like minded person.

If you are successful you will need to draw up a partnership agreement. The more information you put into the partnership agreement the better. It can contains such things as who gets what percentage of the profit, who is responsible for what, how much of the business each partner owns etc etc.

Who you find as a partner will obviously determine the conditions of your partnership. Some people will invest money in a business but don't actually want to do any of the work or have any input into decisions. They see it like investing in shares and expect a return on their investment, without any hard work(this is a sleeping partner). Others will be just as keen as you are to get hands on.

Hope this helps and good luck with the job search.

[Daniel_Geo]

I think I'd prefer a 'sleeping partner' but what sort of return would they expect to see on their money?
Where do you think it would be best to advertise for a partner, would somewhere on the forum be appropiate?

Kind regards,
Daniel

[1nzvestor]

Around 15-20% would be a fairly good figure.

ie if you paid that back over 12 months you'd pay back £621 (15%)

or, if you paid that back over 6 months you may be liable for early redemption penalties (eg a higher rate - possibly 20%) (from some lenders) and you'd pay back approx £594

Get in touch - I may have some sources of help for you.

[i-check]

Daniel,

As previsouly mentioned, I think financing it yourself may well be your best start.

The large supermarket chains are always advertising for temporary staff especially during the summer months. Hours are usually flexible as they operate 24 hours and payment is often over £5/hour, even at your age.

The money will soon add up.

When I was at college I was awarded a Chamber of Commerce Business award. The amount was modest but it was cash and was a huge help!

Whatever happens, you must pursue your business ventue or you will feel so frustrated if someone gets in there first.

Good luck!

[thesinger_n_dj]

hi daniel,

i understand your problem COMPLETLY.

i run a mobile disco business so obviously i need equipment.
i can buy this equipment at the price shops buy it for IF i have a registered business bank account BUT i cant get a business account untill i am 18 (law of the land). so it makes me think, the government are trying to get us youngsters off "the dole" but they are also FORCING us onto it by making it so hard for us to live.

hope u sort something out, its nice to know there are more ppl my age not wasting their time. stick at it my friend, it will pay off.

P.s just noticed ur frm liverpool, were about. im frm birkenhead not to far frm the birkenhead bus station.

[1stforfurniture]

How about two birds and one stone?

Perhaps you should offer to help out at the printers in return for your leaflets, or write a few editorial pieces for the publications you want to advertise in?

Just a thought