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Moshy Moshy is offline
Newbie
Join Date: Jan 2003
Posts: 4
Help

HI, last year i had an arrangement with my business adviser on buying an exsisting Fancy dress store.

He said that everything is fine as we had prepared a business plan and had it all ready to go.

The bank would loan me £15000 and the rest would come from DTI

Unfortunatley, I was then told that the DTI would not help out as i was going in to public domain.

Now the new year is upon us, i would like to give it another go, but some changes have occured since.
The main one being i now have no current job security.

However i have located the same kind of business but for the sum of £15000, Which is what the bank would of lent me in the first place.

Does anyone out there feel that it may still be worth trying?


Thanx
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Warlow Warlow is offline
Starting Out
Join Date: May 2002
Posts: 18
Hi,

You should definitely give it a go! What have you got to lose?
One thing which will now work in your favour is that in the last Pre-Budget Report the Chancellor announced that changes were being made to the DTI led Small Firms Loan Guarantee Scheme (I guess this is the scheme you are refering to).
Previously, retailers were not eligible, but now they will be from April. This will futher improve your chances of getting a loan.
However, can you wait until April?

Best of luck

Rob
Small Business Success
www.smallbusinesssuccess.biz
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Moshy Moshy is offline
Newbie
Join Date: Jan 2003
Posts: 4
Thanx for that info, So i may still be able to get my original plan up and running again.

I guess I should wait untill April to apply again though or should i get the ball rolling again now?

It seems as though the new year may be a good year.
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Warlow Warlow is offline
Starting Out
Join Date: May 2002
Posts: 18
Hi,

Yes, certainly start now. You'll be surprised how long it will take to get things off the ground!
If you want more info on writing a business plan, I have put togther a free e-book, you can get it from http://www.smallbusinesssuccess.biz/...lanrequest.htm

Rob
Small Business Success
www.smallbusinesssuccess.biz
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Moshy Moshy is offline
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Join Date: Jan 2003
Posts: 4
Thanx but I have a business plan already written up, and have done the relevant research.

I think im at the stage where i need to find funding and property.
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Rhys's Avatar Rhys Rhys is offline
Connector
Join Date: Sep 2002
Location: Cardiff
Posts: 190
If you are comitted to your business plan then I would go and contact the bank to see if they would loan you the money. The worst that they can say is "no" and you'd still be in the exact same situation you are in now. They are unlikely to say "no" but they may only offer to lend you some of the money. But thats okay bcos you can always find other sources of funding to make up the 15k. Local council grants, Business - Link(?)/in focus(?), Princes trust, Family, friends, your own secret stash?!?

I'm not sure what your current situation is but I know the Princes Trust tend to loan people money that are unemployed or earn under 10k per year.

Also have you tried www. j4b.co.uk I have never used this site but someone mentioned it on here and said it was quite good.

But I'd definetly review your business plan before you visit the bank to see if changes need to be made because the market has probably moved on in the last year.(?) Show them what changes you have made as i'm sure this will give them confidence in you.

You mention property as well - when I was importing cars I found an office with Business in Focus on an enterprise estate that was only £1600 + rates which worked out about £40 a week. There's a fancy dress shop around the corner from me which is based in the owners basement of their house. The point that I am trying to make is that I don't think you need a high street location with high rent. All the fancy dress shops that I have been to have been off the beaten track.
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Moshy Moshy is offline
Newbie
Join Date: Jan 2003
Posts: 4
i thankyou for your help.

but i am unable to run this business from my home due to lack of space and other things.

Im also going to be selling novelty items and offering party services.

I would really like to go for the business i originally set out to get as opposed to the latter one as i will be getting more for my money and is basically an all round better investment.

I know about the princes trust but they only loan up to a certain amount, far less than what i need, i had written to them asking for some details but had no reply.

As for my own 'secret stash', its so secret i dont think it exsists!

And friends and family are definately a no-go on this event.

On news of the new budget arrangement, im now left wondering, should i apply now or apply nearer April.


Thanx again
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Rhys's Avatar Rhys Rhys is offline
Connector
Join Date: Sep 2002
Location: Cardiff
Posts: 190
I wasn't really saying that you should run the business from your home. The point that I was trying to make is that if you are looking for premises then it doesn't need to cost you a fortune.
I don't think you really need a high street location bcos it's not the sort of thing that people are going to walk in off the street and buy like they would in a clothes shop. You could start up somewhere off the beaten track and then once you are up and running move to a different location if you feel it would benefit you. Plus if you are making money then you can show the bank and possibly they would increase your loan allowing you to expand or move.

Can't you make the 15K business into something like the original? It will save you money and give you more freedom to mold it into something you want from an earlier stage.

I know it probably pee's you off when you email people and they dont reply - well I know it Pee's me off!!!!! But that isn't a real reason to give up on the Princes Trust. They may just have a really rubbish secretary. If you go to the P/T site I think they have the phone number for your local branch. Give them a ring and get the details straight away over the phone instead of waiting them to reply to an email.

The P/t may only loan you a max of 5K but then you would only need to borrow 10K from the bank. Plus if you have the backing from the P/T you will be more likely to get the loan from the bank.

Same with the DTI - ring them up and ask them about this scheme from April - they will employ people to answer enquiries like these.
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