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Packing up the supplies and giving up on my dream - Page 2

post #16 of 35
Thread Starter 
No, neither bank mentioned that. I will call sba tomorrow to get some info. Thanks icon_smile.gif
post #17 of 35

Also, your local college should have a SBA dept. and they will help you with your paperwork and a presentation package.  Atleast, that's what I did.  You're very welcome!!!  Good Luck icon_biggrin.gif

Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways totally worn out, shouting..."Holy Smokes, What a Ride!"
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Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways totally worn out, shouting..."Holy Smokes, What a Ride!"
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post #18 of 35
Thread Starter 
I wonder how I can find out if a local college offers that. Should I just call around?
post #19 of 35

Yes, I would call around or your banker should know, maybe?

Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways totally worn out, shouting..."Holy Smokes, What a Ride!"
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Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways totally worn out, shouting..."Holy Smokes, What a Ride!"
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post #20 of 35

Oh man, hope things turn around for you. :( 

*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
Birthday Cakes
(2 photos)
Birthday Cakes
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post #21 of 35
An SBA loan for working capital has a term of up to 7 years, and the interest rate can be up to prime plus 2.75% (that's 6% based on today's prime rate of 3.25%) for loans of 7 years. Smaller loans (<$50K) can have higher maximum rates. You may be required to personal assets up as collateral (such as your home).

Are you confident enough in your business plan to risk your home on this venture? If not, you are better off going the slow route of self-financing through profits from your home-based business.

Here's more info from the SBA:
http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-program
Quote:
There's no way I can pay off $50, 000 in 5 years. That would be crazy

That's not crazy at all. $50K at 6% for 5 years is about $1000/month. If you sell an average of 5 cakes per day, or 150/month, you can pay off the loan by adding $7 to the price of each cake.
post #22 of 35

So sorry!  I was just on your FB page.  You do nice work!  I am no expert for sure so I'll throw this out -have you tried a credit union as opposed to a reg. bank?

 

I hope all works out for you :)

I love what I do and do what I love

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I love what I do and do what I love

https://www.facebook.com/JeanneWinslowCakeDesign

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post #23 of 35
Thread Starter 

Thank you so much.  And yes, both banks were credit unions

post #24 of 35
Check out crowdfunding, as explained in # 3 of this article. http://www.forbes.com/sites/alanhall/2012/10/20/5-means-of-funding-a-small-business-how-to-get-your-piece-of-the-pie/

I've seen an ice cream business that has used this to get going.

Don't ever give up! There are always options! It may not look exactly like you expected, and might be in a different time frame than initially hoped for, but it's not over unless you give up. That's the part that is in your control.
post #25 of 35

Re-invent! This sounds like delusions of grandeur but maybe you could host a celebrity pastry chef and offer classes? Some of them do tour giving classes for a fee ( book the Town Hall or your local Holiday Inn) There's money to be made there. Aspiring cakesters will shell out to meet a big name cake designer and get a few tips.  20 girls paying $150 each for an afternoon with so and so...Just sayin

I flew to Atlanta 3 years ago to take classes with Nicholas Lodge for a week. Great Class!! I highly recommend! But I spent 600 dollars for that 5 day class + lodging and meals. and there were 20+ other people there who spent the same $600 I did.

 

Hmm  $600 x 20 = $12,000 per week of classes for Chef Lodge. I know, that's HIM, but hey he started out at the bottom like the rest of us!  Fooood for thought <3

post #26 of 35

hmmm the crowdfunding might be interesting to you..there's another one called Kickstarter....I believe- haven't checked it out myself..just heard about it.

 

anyway- I think it would be a shame to stop because you're actually talented and have a true skill. You make very nice cakes. I hope you can find a solution...because there are always options (as already stated), you might have to readjust things a bit. do you have to have a store front? Can you do it from your home still? Move things around? Buy an outdoor space/shed for supplies? I don't know. Good luck. but really- you have a true skill and you're good at it...so don't give up.

post #27 of 35

I'll chime in with the others - don't give up. There is always a way. Ask me how I know ;-)

A year ago I was in an even worse situation than you. I already had my storefront and a small bakery in a separate building on our grounds. Both cakes and cupcakes were going really well so I wanted to build a much larger kitchen (mine was and is bursting at the seams as well) and open a second storefront. Went to the bank with a concept. They said this is great we will support you getting a government subsidised loan, but as you have no collateral to speak of you must apply for a surtey at one of the government banks. I did and the surety was granted. What the bank neglected to tell me was that this is a very costly process. I did of course find out about the fees and of course paid them as I naively thought the word of the bank manager was worth something. Well, to make a very long story short, it wasn't and I paid more than 4,500 $ for a surety I was not able to use.

 

This hit me really hard on so many levels that I was close to giving up too. I did hang on in there, continuing my 80 - 100 hour weeks. About 6 months later I went to a different bank for a smaller loan and with a little help from my step-dad it was granted. This was definitely not the way I was planning to go but I am happy with it now. I have moved to a larger storefront now and am upgrading my existing bakery wherever possible.

 

So do not give up, research crowdfunding (I did as well) and private financing. If you know someone with some connections or someone who can and is willing to guarantee for a loan, don't be afraid to ask! There will be ways that willl open up. They might not be what you originally intended and not every possibility will be right for you and you probably will have to compromise, but you CAN get through this!
 

post #28 of 35
Crowdsourcing can work for businesses that provide a product or service that can be shipped or accessed online, but for a local retail bakery the pool of people who could realistically patronize the business is too small to be of much use.
post #29 of 35

There are a few shops around here who share premesis. We have a coffee/sweet/sandwich shop in town who shares the front portion of her store with a gift business. Been there prob 5 years now. The Cupcake store in the next town has a purse shop in the front of it. Doing good so far.

Would something like that be possible for you? Sharing the rent like that is smart and each business feeds the other.

post #30 of 35
Do you own your house/have a mortgage? Have you thought about expanding your kitchen or building a separate one at home? I would think this would be the least expensive of the options if you have say a garage you could turn into a kitchen. Depending on your house setup, I know you said it was overcrowded, I understand! Sharing a space with someone sounds like a great idea too but putting the extra money into your home seems more like an investment, at least this is what I'm planning on doing. Good luck to you
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