Small business loan advice

Discussion in 'Growing and Managing a Business' started by llfsa, Jun 29, 2015.

  1. llfsa

    llfsa
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    Hope this is the right place. Quick story. My sister is an extremely gifted hairstylist and makeup artist.
    She got out of the work for a few months and now she wants to finally open her first place of business. A barber/salon.

    We are thinking about doing a small business loan. Any advice from people here who opened their own small businesses or even salons?
     
  2. Corzhens

    Corzhens
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    We had our boutique years ago when my husband lost his job. But the location is in our property, the front of our house. Although we spent a lot in building the structure, it is free of rent so when there is no sales, the overhead is pretty minimal. But if we had rented, it probably went bankrupt in a matter of 3 months. Take a note of the rental expenses.
     
  3. Damien Lee

    Damien Lee
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    I took out a loan when starting my first small business, primarily to purchase all the equipment that I needed. The bank would not approve a loan without a proper business plan. Therefore I came up with a business plan after consulting with my accountant and another business person within the industry. Eventually my loan was approved, it took around 2 weeks but I was able to set up my business.

    It's important that your business plan is realistic but also that you will be in a position to pay back the loan. In my case, I was able to pay back the loan within 3 years and grow my business. It helped that I consulted with the right people that provided me with sound advice.
     
  4. tsubibo

    tsubibo
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    Weight the pros and cons. IMHO, I would not take out a loan. I would find a new job and save every bit of everything extra into building my own salon. And corzhens is right, rent is a very expensive overhead.
     

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