Small Business Owners -Help please

[lb99]

Small Business Owners
I have located a small buisiness that I would very much like to buy, but my problem is that I have no capital or formal qualifications to do with running a business, can I apply for a grant from anywhere, or borrow 100%? I am serious and very confident that I can make it work, as it is really just an extention of my current hobby, can any one offer any advice?

[nudemetalz]

Heya Ib99

This has been discussed recently. Check the thread out..
http://www.kiwibiker.co.nz/forums/showthread.php?t=35644

http://www.biz.org.nz helps you out a lot.
I've used them, been on courses etc, all provided by the government.

[SwanTiger]

http://www.biz.org.nz/public/section.aspx?sectionid=39

My advice. Get a second job, place the income from that into a savings account, after 12 months leave that second job, go do one of the many practical business courses available part time, then setup your business with your savings and newly acquired knowledged.

Nice slow methodical steps would be my advice.

Small Business assistance is available in most forms, especially with our current Government. It's even more easier if you are a foreigner or of Maori decent.

I'd personally suggest you stay away from any grant program, we considered obtaining one a while back for a wholesale business I had. My accountant came back with all the options and they were a waste of time. Within 6 months the business was doing well anyway and I only injected $5,000 to get it on its legs.

Borrowing is definitely a possibility, depends on the amount. If you have a house or other big assets it should be a straight forward process. Speak to your bank.

[JimO]

remember nothing is for free and lots of small bizzs fail within 2 years either because of no money or no brains or both

[JimO]

oooh 200 posts

[cowpoos]

yes you can....and don't let no cunt tell you other wise....it took me four banks to find one that would back me and 6 finance company's to find one that believed what I was going to meet my obligations to start my bussiness....and i had nothing to start with

[sAsLEX]

It's even more easier if you are a foreigner or of Maori decent.


Got to fuckin love this racist nation!

[cowboyz]

I have to agree with cowpoos to some extent. When we went sharemilking we couldn't afford it but if we waited till we could we probably would never had done it. 12 months of hard slogging and we come out right side up. Little luck plays into it but I always liked the old saying .. The harder you work.. the luckier you yet. We stayed in business for just under 10 years and then by choice we sold up and moved to town for a change of lifestyle. Work out what you *need* and set realistic budgets. Get your facts on paper and present it to a financial insitution it a way that they can't refuse. Dont go in begging for money. You are doing them a favour by borrowing money off them and giving them your business. Not the other way around.

[nudemetalz]

Well put, Cowboyz.

[Drunken Monkey]

... can I apply for a grant from anywhere, or borrow 100%?

People often have trouble borrowing money from a bank for a business simply because they don't know how to give the bank manager a clear, detailed and effective business plan. You need to show them you do know what you're doing, and I mean from a business acumen perspective rather than you have the trade or technical skills to perform the role of that business function. You have to show them you know the business and have researched all the figures, then back them up with income estimates and justify them.

If you just wander in and say "I need $40K to buy a widget making business, look at this cool widget I made, don't you think I make cool widgets?" you'll get nowhere. Show them figures - this business will cost this much to setup/buy, we're going to make these widgets for this much, we can do this because the salaries will be X and we'll purchase our components from this guy for Y. We already know we have a market for them here and there, we conservatively estimate sales at z%, which means we'll be getting a return on our investment in however many months.

Not sure about borrowing 100% though, coming up with some of the required money yourself is usually required as some sort of 'proof' you're serious and have the ability to actually put money aside and not spend it all.

Oh, and once you're up and running, always pay Mr IRD man first and on time, no matter how vocal your other creditors may be.


remember nothing is for free and lots of small bizzs fail within 2 years either because of no money or no brains or both

The biggest bankrupter of businesses is inland revenue. Lots of people can't see past the cash in their account and spend it all on that house renovation and that new boat before Mr IRD comes along and says you've been making profit, you owe us $$$. They start off a bit behind and get further and further.

[dnos]

The biggest bankrupter of businesses is inland revenue. Lots of people can't see past the cash in their account and spend it all on that house renovation and that new boat before Mr IRD comes along and says you've been making profit, you owe us $$$. They start off a bit behind and get further and further.


Friggin aye.

I am a tax agent and its amazing how people miss that point. The IRD isnt going to ask for tax from your first year trading till the year after, and then in the second year this means you will be having to pay two lots of tax at once.

Get some good advice from a TAX accountant, they will let you know in advance what you need to know. In fact if there are any quick questions just give me a PM and I can try help you out.

One more thing, what was said about having a good business plan is absolutely right. You need to know all of that before you go to any lender - and that should include yourself. Know what its going to cost and a number of people you can sell it to. Not "heaps" but a number.

Do the background work before you jump into it and good luck with it all.