Questions and Answers
I am 21 years of, about to graduate from college. Will banks grant me a loan to open a business?
Getting a business loan is NOT easy – especially with the tough economic climate.
You just don’t go to a bank to ask for a loan with only your business idea. Banks look at other factors not just your credit score when applying for a business loan. Banks want to see:
- demonstrated ability of the business to generate revenues — businesses that are already operating and have at least 2 years' worth of financial statements that demonstrate strong profitability. Business ideas are just ideas; not proven to generate profits. Banks also do not often lend to startups
- ability to repay the loan through collaterals and assets. They need to see that they can get something back from you in the event that the business goes bust and you cannot repay the loan
- solid management team: they want to know that the business will be run by someone who knows what they are doing
- excellent credit history
- your investment in the business: they want to see that you believe in your business enough to put down your own money into the business
If you have the above, then prepare a business plan. – The business plan is NOT the first thing banks want to see. It's important, but banks will need to see your ability to repay the loan. Sometimes, they won't even bother to read your business plan if they know you don't have any money. If you have to have a business plan, you need a good executive summary (as that is what they're most likely read, if at all) PLUS solid, realistic financial projections/plans.
I'm interested in buying into a franchise gym. Anyone have some good info on good franchises and /or advise?
You should look into Fitness Together. A friend of mine opened his own gym up in St. Louis and is looking at opening more after the success he's had with his first one. He and a friend went in, opened a gym and he bought out his friend and owns the gym himself while his friend went on to open his own. You should definetly get in contact with him as he will give you lots of tips and may even help you with opening your own gym. Here's the link to his gym's myspace page with all sorts of info Http://www.myspace.com/ftcottleville and just mention that you were referred by cory k.