I'm in the process of just starting out my business loan application. In two weeks I will start getting free local help from the small business association. They are going to help start the process of applying for grants (free money) and help me come up with a finacial plan. The problem is I don't know how much money I will need to start the bakery. I'll need a sink, stove, refridgerators etc. There will be lots of little things to buy also. I'm trying to find a commercial real estate agent now so I can start figuring out what rent is going to look like. I will also have to pay my bills at home each month regardless if I make the money to do so. Anyone that could offer me advice I would be very apreciative of.

Andrea

Where do you plan to open your shop?

You also have to figure in the cost of registering your business with the proper tax offices, ficticious name office, code enforcement and health permits, any remodeling that needs to be done, insurances.

I would consult with your local governments to see what is required before contacting anyone else.

Theresa

Good luck with that, I went to S.C.O.R.E. and I was told that to get any kind of grant or assist or loan I had to be in business for 3 years.

The bank would not lend me the money to "START"...sba would only give me the money if and when I had 3 years under my belt...Food businesses are very "RISKY" investments for banks.

The SBA would give me the money to expand or renovate after 3 years.

If by some chance you get any funding....Let me know how you did it, because I would surely be following right behind!

lol

I guess I would need to tell you the location, Kansas City Misssouri. I have been in business two years working as a subcontractor for a local bakery. I can prove my income for those years. Also next year I already have almost 80 wedding cakes under contract (so they can see i'm making money). Thanks for your help already.
Andrea

The best place to research grants and business loans is at college and university libraries. They have a lot more resources than public libraries do.

Theresa

wow, that is amazing...but..like I said...if you can pull it off, please share how.

I had a solid business plan that took me almost a full year to put together, solid demographics, which showed that I had "NO COMPETITORS" in my field..( niche market ).

I had my Degree in Baking and Pastry, my certification...25 plus years experience and a "new" product for an old market.

and a location that had previously been a bakery...


and it was still a no go on my neck of the woods, not even as a MINORITY or BUSINESS WOMAN..or Minority Business woman..lol

So. I'm putting in my time to reapply.

YOU go girl!!!

My mentors are coming from a local college here in town. The are also get me counseling from the local restraunt merchants who have been in my situation. I will defantely pass on any grant information I get and i'm sure each town is different. I know there is at least one string attached to the free money and that would come later when I mentor new business owners. I could handle that. Thanks again,
Andrea

I have been told over and over there is no free/grant money to open a business unless you plan to hire disabled vets or the deaf.

I've always wanted to hear something different!
mpc

That is a myth, probably started by someone who was turned down for a grant or loan.

It is true that it is very difficult to get a loan for a food-related business, and even more difficult to get a grant. There are certain governmental advantages to hiring veterans, but as far as grants or loans, I have never heard of that being criteria for qualification.

I took a course in How To Start A Business, which was sponsored by the local community and economic development office. Most banks or grant-providing agencies will not even consider your applications unless you have taken this course.

Check into what is available in your area.

Theresa

Yep, I didn't get the help I was hoping for, but I get "invited" to all these seminars..

But, who has the time? I"m trying to run my business...not take time off to do all these seminars that some are not even related to what I need..

But that's wonderful that you're willing to share!!

My business plan even had a "give back" program in the space I had...I had a smaller proposal to teach underprivilege women or women grown out of the foster care system and to let them work with me to gain experience and then go on to work in bigger and better places or open their own space.

and I was STILL told to wait the 3 years...sigh!!

lol

Risque -

That is a great "give back" program. I wish more people thought like you do. Kudos to you.

Theresa

I know what you mean. I went through that about 10 years ago, with a business venture I had in mind. I went to the local SBA/SCORE office, where the only guidance I got was to be pointed in the direction of the library at the college campus they were located on. They also told me that the business I wanted to start was too Avante Garde. Yet, eight years later, someone opened a chain of the same business across the US, using government money.

Theresa

Thanks for all your help!!!!
Andrea

hello, I just opened my own bakery about 3 months ago. I could not find any help from anyone so we ended up re-financing our house and taking out a second mortgage. Unfortunately, we have only been in our house for a little over a year so we were only able to get about $17,000. I got very creative with how to best use this money. I went to many many auctions and got almost all of my equipment and alot of it also came from the classifieds in the paper. this really was not enough money for me to get started but I did it anyways. I found a location and did some renovating. Granted, it was not really what I had in mind for my dream bakery but hopefully after 3 years(which is the length of my lease) I will have myself established enough to where I can move up. But hopefully this is somewhat of an encouragement. Currently, I am working the bakery and I also have another job just to make sure that I can make the loan payments for the house. We have been open for just over 3 months now, my sales have gradually been increasing each month and Christmas completely kicked my butt I am making enough each month to make all my bills/rent/supplies/etc. Not quite enough to pay myself any kind of salary but that is fine, I am sure it will come eventually. It is really tight right now and I wish that I were able to have had a little more to start out with to take some of the pressure off, but I knew that if we did not try it now we may have not gotten the opportunity again. Hope this helps in some way

[quote="Rooh"][

I just can't justify spending that kind of money to start my business yet. It would put me $120k+ in the whole and I don't even have any equipment or inventory. (This is probably why food industry business usually go under. They have to start out so DEEP in debt.)

quote]

Yes, I agree with you. It's so hard, not only did I have to use all that I had saved to get and equip the place, my rent is so outrageous and with the type of customer that I'm going after I cannot move to a "seedier" area of town.

I have to be "convieninet" to the "downtown" hip and fun crowd and and then there is the 'bread and butter' crowd..the loyal customers that keep coming back.

I would LOVE to have the money to move further down to the real TRENDY downtown area...or get a shop in a "toney" part of town where the real money is..but I have a problem explaining to a landlord what it is I exactly do..lol

So, I"m kinda stuck betwee a rock and hard place right now...so...I'm going to raise my prices, maybe I can work less and make more money!

lol

I'm actually trying to keep myself above water and not get in so deep that I can never get out. So far so good!

I only want to confirm and reiterate what RisqueBusiness has said. I ran into the same barriers ...... in the food industry, you cannot get a loan to start a business until you have been in business for 3 years. Working in a bakery is not the same as "being in business".

I asked them, "Does anyone besides me see the irony in that logic?" The banker grinned and agreed but he was locked up by his loan underwriting dept. 3 years in business or nothing.

One bank told me I was classified in the restaurant category because I was a caterer. I tried to explain the differences ..... I dont' have a staff hanging around hoping SOMEONE comes in for lunch. I don't have food that I've prepped and prepared "on spec" hoping SOMEONE comes in to buy it. I don't have expenses like tables and chairs and linens because I'm not a restaurant. I get paid up front, THEN I buy the food. I cook on Friday and Saturday for weekend weddings. And probably made more in 2 days than some restaurants made in a whole week.

DIdn't matter. I was a "restaurant" category and that made me high risk. Even tho' I had actual sales numbers for just short of 2 years to show them. Even tho' I had substantial growth from the first year to the second. Even tho' I had actually booked events for the following year that already exceeded the current year's sales. Even tho' I had the business plan with detailed numbers of costs and projections and research. I even hired an professional organization who helped me put together my 40+ page business plan.

I saw it said on here before and it's true. Contrary to popular belief, the SBA is not out there just waiting to write us all a check because we're women.

But don't give up. It can happen. It's just not as cut-n-dry as everyone makes it out to be. I did get a line-of-credit loan from one bank. It's not enough to cover everything, but I'm still working on it.

As the song from Journey says: "Don't Stop ........ Believin'......."

Hey Indydebi - Where you able to go ahead and get your space that you were telling me about??????

I think I may have stumbled into a sweet deal. Takeout business here went out of business (Hubby was "helping" out the hired help - wink-wink, nudge-nudge and wifey caught wind of it). I was able to purchase their NEW equipment for a steal. I am also going to sign the lease for their space (already finished interior) this next week.

We are going to give it a shot for a year and see how the chips fall. Intend to do my catering, cakes, and a Home cooked takeout business. I also have another baker that is looking to rent some space. Thought we might be able to help one another out on that too.... She can't afford to go full-blown yet and it would give me something to supplement expenses.

Those of you out there looking.... KEEP looking. Get some sort of networking going on. You would be surprised at some of the connections what could land at your feet. I am so excited.... This is the FIRST time ever that I have been in the right spot at the right time...

Don't stop dreaming your dream...... If it is meant to be, the big guy will guide you......

Rooh: YAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! What a super deal you found! Actually, I've connected with a JP, a guy who runs a wedding chapel with a new venture. I'll PM you later!

Way to go, babe!!!!!!!!!!!!!!! What an inspiration story!!!!!!!!!!!!!!!