I have an opportunity to be a co-business owner and the facility I want is a "ready to move-in" building in an ideal location. Due to commitments and financial obligations over the years and being the sole income as a single parent where both my children were pursing bachelor and master's degrees as well as myself working on my doctoral degree I don't have the finances to put down. Now that I am retired, I am hoping to live out my dream by opening a quality daycare center. My credit is not good enough to obtain a loan so I am looking for investors to help me get started. Is there anyone who can help me find resources and most importantly help me prepare a letter to present to potential investors? I know with my excellent education and experience, reputation and background I can draw the clients to fill the center. I just need to get my foot in the door with start-off funds. Any help or guidance would be more than welcome.
Answers
Normally no grants for startup businesses.
Most banks will provide an equity line of credit.
The equity could be on your home, land, business or other.
Talk with your bank's loan officer.
I started my residential rental business using a equity line of credit for the down payment.
Then as the equity in the building increased, I used this equity to purchase more rental buildings.
Good Luck,
Paul
Don't waste your time seeking grants. Very few are available to profit motivated businesses.
As a business owner my recommendation would be to start some thing may be smaller with your money best start up funding normally comes from, Family and Friends other investors will invest on it and the profile of successfully running that business.
SBA is a good resource to start doing documentations,
Also, make sure someone advises you on the kind of partnership you enter into before you co-own anything! ;)
As the mother of 4 kids, I applaud your willingness to bring little feet and fingers back into your life after having been freed once! It sounds like you need a start up capital loan. Those are given to Veterans at the state level and the decision is based "in-house" and will have more to do with whether you are the best option out of their applicants rather than your personal credit rating. Here is a great link to get started. Somewhere in there is the state contact list. If you have trouble finding it, just let me know. http://business.usa.gov/start-a-business
You will need to submit your paperwork to them and a good business plan. The SBA even has a very easy to follow app to build that! http://www.sba.gov/tools/business-plan/1
Funds for these loans are usually underwritten with state non-prof or grant monies so you want to focus on the value your service will bring to the community in terms of childcare availability that is more affordable, or potentially hiring or training at-risk teens as helpers, etc. and less on the return on their investment financially.
Hope that helps, keep us posted!
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