Question Hello,
I'm in the process of starting an internet cafe, and am in need of some advice. (I'm new to thins whole thing) I've calculated that I'll need about $30K to start it up, so I'll take out a line of credit for $50-60K (just in case). Do you have any advice, as far as taking out a loan? My brother seems to think that a formal buisness plan is needed, is that true? Is it better to have a location picked out first? Do I need to formulate the LLC before or after?
Thank you in advance for your help!
-Richard
Answer Dear Richard:
Yes, you will need a business plan. It is ALWAYS good to have a business plan (first – you need it for yourself, second – to show it to the bank):
1) It will show you what you want and how to get there
2) It will show your competitors
3) It will show how your operations will end –escape plan J
Yes, you must pick the location first, because it will affect your strategies (and business plan).
Loan.
You have a couple of options:
1) If your credit score is 680+ - you can qualify for up to $50,000 unsecured start-up loan
2) If your credit score is at least 560 – you can get home equity line of credit up to $5,000,000
3) If your credit score is bad try Microloan. For more info go to: http://www.blquest.biz/microloan.htm
4) Ask your local bank – probably they have some special programs for start-ups
I would not recommend to do business as LLC in your case. Open Corporation – it is safer. To read about different business structures go to: http://www.blquest.biz/serv02.htm
Sincerely,
Marina Lando
Commercial Loan Broker, CFC
888-469-1505
www.blquest.biz
