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Old 07-11-2018, 08:23 PM
 
880 posts, read 417,198 times
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This has to be the easiest form of starting a business yet I知 not sure where to start. On average I think you need about $100k to start. I知 in my mid 30s and am calling my bank to find out what I need for a business loan. I知 in Richmond Virginia now but would like to start the business in DC or NOLA. I don稚 want to jinx it and say the actual business name but it痴 similar to Equinox. Am I being too ambitious? I have an associates degree in business management and work as a massage therapist and esthetician. My current credit score is in the high 600s. Any advice would help.
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Old 07-11-2018, 09:14 PM
 
10,868 posts, read 41,128,193 times
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I'm sorry, but your "associates degree in business management" doesn't sound like it prepared you for the real world requirements for owning and operating a business.

You may be in for a rude awakening when you find out how much net worth and disposable assets you can put at risk are required to obtain a business loan. Talk to your banker is but one step … talk to the franchise sellers you're interested in, too.

IMO, most franchises are little but a means to "buy yourself a job" which may have some very poor compensation associated with it. As well, if you're looking to buy an existing franchise business, be sure to have a knowledgeable accountant go through the business with a fine tooth comb. I've seen more than a few franchisees happy to sell out to the next sucker with blatant misrepresentations as to what is involved and just how much money they were really taking out of the business.

On a side note, a good friend of mine is the brother of one of the main players of Equinox from years ago. My friend was singing the praises of Equinox water treatment and supplements for a few years while the money was coming in by the bucketful for his brother. His brother and Bill Gould had quite the falling out in due course … because the biz was really an MLM scheme that was very deceptive, perhaps one might say "fraud" from several aspects. So, if you have admiration for Equinox, I urge you to do your due diligence about these types of marketing schemes/business ventures. Pay particular attention to who the main players are, where their business backgrounds are, and where they went after the companies fizzled. Some of them have a repeated track record of very shady business ventures in which very few people ever captured a real income.

Additionally … with only a "high 600's" credit score … who do you think will be lending you venture money without collateralizing the note far in excess of the amount of money lent?
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Old 07-11-2018, 09:36 PM
 
880 posts, read 417,198 times
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Quote:
Originally Posted by sunsprit View Post
I'm sorry, but your "associates degree in business management" doesn't sound like it prepared you for the real world requirements for owning and operating a business.

You may be in for a rude awakening when you find out how much net worth and disposable assets you can put at risk are required to obtain a business loan. Talk to your banker is but one step … talk to the franchise sellers you're interested in, too.

IMO, most franchises are little but a means to "buy yourself a job" which may have some very poor compensation associated with it. As well, if you're looking to buy an existing franchise business, be sure to have a knowledgeable accountant go through the business with a fine tooth comb. I've seen more than a few franchisees happy to sell out to the next sucker with blatant misrepresentations as to what is involved and just how much money they were really taking out of the business.

On a side note, a good friend of mine is the brother of one of the main players of Equinox from years ago. My friend was singing the praises of Equinox water treatment and supplements for a few years while the money was coming in by the bucketful for his brother. His brother and Bill Gould had quite the falling out in due course … because the biz was really an MLM scheme that was very deceptive, perhaps one might say "fraud" from several aspects. So, if you have admiration for Equinox, I urge you to do your due diligence about these types of marketing schemes/business ventures. Pay particular attention to who the main players are, where their business backgrounds are, and where they went after the companies fizzled. Some of them have a repeated track record of very shady business ventures in which very few people ever captured a real income.

Additionally … with only a "high 600's" credit score … who do you think will be lending you venture money without collateralizing the note far in excess of the amount of money lent?
As far as the loan goes; I was thinking if I paid down my credit card and used it responsibly while I save $10k over the next few years, my loan shouldn’t be too bad as my credit score should raise a few points and I’d have my down payment at least.

I’m thinking about signing up for a mentor from the local sba.

I’m not sure we are speaking about the same business. I’m talking about the luxury gym Equinox.

Last edited by Va83; 07-11-2018 at 09:46 PM.. Reason: Add on
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Old 07-11-2018, 09:45 PM
 
Location: Honolulu
819 posts, read 1,284,200 times
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There's a franchising thread right below this one. Did you read it? Bottom line is you better figure what the worst case scenario is and if you can survive if it happens. Just judging by the very limited information you provided: associates degree in business management, mid 30s, credit score in the high 600s, needing a business loan. I would have to say do another year of research before even thinking of buying a franchise. Talk to people in the industry. Whatever you do, do NOT jump into something this risky knowing little to nothing about it.
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Old 07-11-2018, 10:25 PM
 
10,868 posts, read 41,128,193 times
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Quote:
Originally Posted by Va83 View Post
As far as the loan goes; I was thinking if I paid down my credit card and used it responsibly while I save $10k over the next few years, my loan shouldn稚 be too bad as my credit score should raise a few points and I壇 have my down payment at least.

I知 thinking about signing up for a mentor from the local sba.

I知 not sure we are speaking about the same business. I知 talking about the luxury gym Equinox.

Equinox the company I was thinking of and the gym company you mention are, indeed, different businesses.

But it's still unclear if you grasp the amount of money it takes to be in business where the money needed is far in excess of a down payment. You need operating capital for all the business expenses, insurance, operating expenses, etc.

you must have enough assets free and clear in excess of your living situation to be able to put them at risk of losing it all.

You must be able to provide for your living until the cash flow from a business start-up starts spinning off "profit" in excess of the fixed and variable expenses you'll encounter. For many businesses, that can take years before it happens. All the more so if you've bought into a business for which you have no prior experience or expertise.

No bank is going to lend you the money for a small business venture that is collateralized by the business. You need separate assets to pledge to secure the note so if your business fails, the bank can still be made whole by cashing out your pledged asset.
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Old 07-11-2018, 11:16 PM
 
880 posts, read 417,198 times
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Aside from loans aren’t there grants for 1st time business startups? Am I comparing this to getting a home too much?
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Old 07-12-2018, 09:15 AM
 
608 posts, read 280,904 times
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Quote:
Originally Posted by Va83 View Post
Aside from loans aren’t there grants for 1st time business startups? Am I comparing this to getting a home too much?
Never started a business have you? To get oriented, put on a suit and go talk to loan officers at a couple of local banks. Come back and tell us about the experience -- it will be most entertaining.
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Old 07-12-2018, 11:04 AM
 
880 posts, read 417,198 times
Reputation: 798
Quote:
Originally Posted by TimAZ View Post
Never started a business have you? To get oriented, put on a suit and go talk to loan officers at a couple of local banks. Come back and tell us about the experience -- it will be most entertaining.
I値l do that. I知 not afraid of rejection. I値l just take it as a learning experience.
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Old 07-12-2018, 04:39 PM
 
Location: Honolulu
819 posts, read 1,284,200 times
Reputation: 1390
Quote:
Originally Posted by Va83 View Post
I値l do that. I知 not afraid of rejection. I値l just take it as a learning experience.
Actually you should welcome rejection, as it very well could save you tons of grief down the road.
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Old 07-15-2018, 12:38 AM
 
2,621 posts, read 2,023,746 times
Reputation: 4761
Since you are a message therapist and esthetician, why aren't you starting a business that relates to this?
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