View Full Version : credit query
07-10-2004, 02:34 PM
Hello. I am just setting up as music consultant, working with brands and media owners on their music promotions. As I want to offer clients a one-stop-shop service this will involve manufacturing a large amount CD's (up to 2 million). Although I have a good relationship with a number of manufacturers they are unwilling to offer credit for such a large amount - even with a Purchase Order from a Blue Chip company.
I do not have the financial resources to cover such a large amount up-front.
What are my options? Are there organisations that can help start-ups in this situation?
Hope you can help.
08-10-2004, 01:28 PM
Would it not be cheaper to have music cut onto the CDs when required? How could you lower your start up costs? Would it be more cost effective to outsource the manufacturing and distribution?
I think it is going to be difficult (though not impossible) to get the required funding. It will be best to seek advice and information from your local business support organisation.
Try the most relevant of the following:
Business Link (England)
Business Connect (Wales)
Business Gateway (Scotland)
Invest Northern Ireland
The Economic Development department at your local council (http://www.oultwood.com/) may also be a good source of information about grants and loans. In addition, local enterprise agencies (http://www.nfea.com/index.htm?page=find_lea.htm) and the Prince's Trust (http://www.princes-trust.org.uk/) may also be able to help.
If you register online with Shell LiveWIRE at http://www.shell-livewire.org/cgi-bin/register.pl, you will be able to access a great deal of relevant information within the Be Your Own Boss section, including articles on Finance and Funding.
Good luck, and keep us informed of your progress,
08-10-2004, 05:32 PM
I need to produce all the CD's in one go as it's for a one-off promotion.
Factoring companies & Venture capitalists have been mentioned, what your thoughts on those...
11-10-2004, 09:53 AM
Have you thought about postage costs as well as the costs of the CDs? Would it not be possible to have a website developed, containing the information on the proposed CD? That would cut costs considerably.
Venture capitalists and business angels may be interested, but they will want to see almost a cast-iron return on their investment. Also, in some instances, they may want a sizeable stake in the business.
Take a look at:
National Business Angels Network
British Venture Capital Association
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