Advice on funding next business

[KJFast]

Hey guys, firstly I’m only asking for ADVICE not begging for investment or money.

I can’t afford the costs associated with starting up my next business, these are under £10,000

Now wondering, what routes could be doable to fund this?

I don’t want to hand over any control, just basically need a way to get these funds to start up. I have a current business but it really doesn’t turn enough profit to do this, I could seek investment for more stock for current business which may help as it does sell albeit sort of slowly.

 

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[Stargazer]

If you really think you need £xyz and don't have it, just get an unsecured loan.

eg £7k over 3 years at 7.9% is £218 a month in repayments according to Nationwide that I just typed in as an example. So you would end up paying £7853 in total.

If that £7k allowed you to start and make sales from next month you should be covering all or most of the £218 from month 1 anyway.

Dan

 

[KJFast]

If you really think you need £xyz and don't have it, just get an unsecured loan.

eg £7k over 3 years at 7.9% is £218 a month in repayments according to Nationwide that I just typed in as an example. So you would end up paying £7853 in total.

If that £7k allowed you to start and make sales from next month you should be covering all or most of the £218 from month 1 anyway.

Dan

Much appreciated bro! Going to get more soft proof and validate the idea more. Then maybe get hard proof and see if people would actually pay for the idea. Definitely loads of value skew’s compared to what exists but would take months and months of learning for me to launch the site needed.

 

[Kung Fu Steve]

Hindsight is always 20/20... but whenever I borrowed or raised money for a project, I realized shortly after that I could have done it for much less and/or nothing.

If you have any sales chops whatsoever, you can sell the product/service before you have it, collect purchase orders, and borrow money against those purchase orders for a very minimal amount of interest (a much more secure investment for a lender).

... but seeing as you haven't said what it is I'm guess it's some crazy hair-brained idea like an app or something revolutionary that's going to change the world overnight and if you JUST had 10k, you'd be a billionaire...?

(I'm just poking fun, but this is common here on the forum)

I have a current business but it really doesn’t turn enough profit to do this, I could seek investment for more stock for current business which may help as it does sell albeit sort of slowly.

I have no idea what you're doing, your situation, or ANYTHING... so this is my horrible advice (take it for what it's worth):

1. Make your current business profitable before doing anything else. Don't run around putting down foundations. Finish the building.

2. Don't throw good money after bad.

3. Don't give away your promise of tomorrow for security today.

 

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[KJFast]

Hindsight is always 20/20... but whenever I borrowed or raised money for a project, I realized shortly after that I could have done it for much less and/or nothing.

If you have any sales chops whatsoever, you can sell the product/service before you have it, collect purchase orders, and borrow money against those purchase orders for a very minimal amount of interest (a much more secure investment for a lender).

... but seeing as you haven't said what it is I'm guess it's some crazy hair-brained idea like an app or something revolutionary that's going to change the world overnight and if you JUST had 10k, you'd be a billionaire...?

(I'm just poking fun, but this is common here on the forum)



I have no idea what you're doing, your situation, or ANYTHING... so this is my horrible advice (take it for what it's worth):

1. Make your current business profitable before doing anything else. Don't run around putting down foundations. Finish the building.

2. Don't throw good money after bad.

3. Don't give away your promise of tomorrow for security today.

Appreciate the advice and no, it’s not some crazy hair brained idea. I’m not planning to make billions with it, infact believe it’ll make about £2-£4k+ monthly when fully operational. I promise, it’s not an app. Though maybe an app could be a future development but that’s way out of my scope right now.

With regards to 1), my current business is profitable but how is this related to starting my next? It doesn’t lose me money but doesn’t have enough momentum or scale. Maybe you mean make it profitable to fund next one which is a good idea but really I’m looking at maximum £1000-£2000 if I woke up tomorrow and someone bought all my stock for best retail value.

I didn’t really understand 2 and 3 but I’ll check back tomorrow as I’m still pretty ill and out of it at the moment.

I’m willing to discuss this idea with anyone who’s well known on this forum. Though I’m pretty set on it, already know what the challenges could/would be.


Do appreciate this though, will search and maybe there’s a cheaper or “cost-free” alt to what I’m thinking. In fact thinking about it, probably is. My brain is super scrambled and this illness sucks a$$. Going to put my phone off now as looking at a screen has given me a headache.

Thanks again tho, will check back tomorrow

 

[Kung Fu Steve]

Appreciate the advice and no, it’s not some crazy hair brained idea. I’m not planning to make billions with it, infact believe it’ll make about £2-£4k+ monthly when fully operational. I promise, it’s not an app. Though maybe an app could be a future development but that’s way out of my scope right now.

Not to be offensive but for 2-4k/month... why bother? An investment of 10k to get a guaranteed 2-4k/month is a very good investment... however, it's not a very strong business.

It is extremely helpful if you just say what you're trying to do... in plain English... without trying to be a secret agent...

With regards to 1), my current business is profitable but how is this related to starting my next? It doesn’t lose me money but doesn’t have enough momentum or scale.

Why?
How do you know?
Are you SURE?

Maybe you mean make it profitable to fund next one which is a good idea but really I’m looking at maximum £1000-£2000 if I woke up tomorrow and someone bought all my stock for best retail value.

Yes.

The man who chases two rabbits catches neither.

I didn’t really understand 2 and 3 but I’ll check back tomorrow as I’m still pretty ill and out of it at the moment.

2. Don't throw good money after bad.

This means, you have a business going making SOME kind of money. Don't take that money and throw it at an unproven business model/product/service.

Example: I make money in my business. Invest it in random crypto shitcoins hoping it'll take off (Gambling).


3. Don't give away your promise of tomorrow for security today.

By giving equity you're giving someone a piece of profits you haven't earned yet. It's a future promise. You have little to no profits now with not a very solid promise of future profits... but if you're giving that future promise away, it takes away most of your motivation to continue.

NOTE: random thoughts, take them for what they're worth.

I’m willing to discuss this idea with anyone who’s well known on this forum. Though I’m pretty set on it, already know what the challenges could/would be.

Which is great but well-known here and knowledgeable are two very different things.

Do appreciate this though, will search and maybe there’s a cheaper or “cost-free” alt to what I’m thinking. In fact thinking about it, probably is. My brain is super scrambled and this illness sucks a$$. Going to put my phone off now as looking at a screen has given me a headache.

Don't stress!

Thanks again tho, will check back tomorrow

 

[KJFast]

Not to be offensive but for 2-4k/month... why bother? An investment of 10k to get a guaranteed 2-4k/month is a very good investment... however, it's not a very strong business.

It is extremely helpful if you just say what you're trying to do... in plain English... without trying to be a secret agent...



Why?
How do you know?
Are you SURE?



Yes.

The man who chases two rabbits catches neither.



2. Don't throw good money after bad.

This means, you have a business going making SOME kind of money. Don't take that money and throw it at an unproven business model/product/service.

Example: I make money in my business. Invest it in random crypto shitcoins hoping it'll take off (Gambling).


3. Don't give away your promise of tomorrow for security today.

By giving equity you're giving someone a piece of profits you haven't earned yet. It's a future promise. You have little to no profits now with not a very solid promise of future profits... but if you're giving that future promise away, it takes away most of your motivation to continue.

NOTE: random thoughts, take them for what they're worth.



Which is great but well-known here and knowledgeable are two very different things.




Don't stress!

Definitely feeling much less ill after a sleep haha.

Understand with the well known and knowledgeable aspect. Makes a lot of sense points 2/3. Definitely more soft & hard proof and prototyping needed.

I’m also pretty sure about leaving the current business I have in the state it’s in. It’s profitable for sure but other reasons for quitting it remain.
I completely understand about the man who chases two rabbits catch none but the man chasing a rabbit almost doomed to fail never get’s the chance to get the second one.

Actually planning an exit with my current business which I could fund the next one with. Small figure exit but realise it’s best to spend as little as possible and get more soft/hard proof first with prototypes.

 

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[amp0193]

Only $10,000?

Short answer, just get a credit card.

If your credit sucks and you can't, then just sock away some savings from a day job or a side hustle for a year until you have it.

 

[Kevin88660]

Borrow and pay it back if it fails.

 

[GoldFibre]

Presell 10k worth of orders.

 

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[amp0193]

Presell 10k worth of orders.

Definitely possible if you can generate enough interest and demand for the product.

Did it with my current business.

This is why kickstarters exist.