Yet another new business question. Raising capital to start concert business?

Discussion in 'Starting a Business' started by B.Tartaglia, Apr 18, 2013.

  1. B.Tartaglia

    B.Tartaglia
    uix_expand uix_collapse
    New Member

    Joined:
    Dec 3, 2012
    Messages:
    6
    Likes Received:
    0
    Hey all,

    Thanks for taking the time to view my thread. Ive posted questions about start ups on this forum in the past and received some great advice, so thanks to all who have helped me! I am currently building a small concert production company based out of Newtown, PA (15 min outside of Philadelphia) and need some advice. To keep this simple and to the point, I need to raise money to host our first concert. The revenue from this concert will then fund future events and help me build the company . Like any new venture, ive reached the hardest point of the journey... RAISING CAPITAL. I need to raise aprox. $25,000 to do this and I already have an event plan written up and ready to go once it comes back from the printers. The event plan is basically a business plan, but is smaller since it is only a one day event. In the plan, I guarantee the return of the initial investment (in payments) to the lender if the event does not turn a profit greater than what they originally put in. This of course would be a contract agreement. My main problems are that I have no personal assets worth the amount I am looking for to use as collateral and my personal credit isn't high enough to obtain a personal loan (Not bad credit, just not too high). I have already tried getting loans from family members but everyone is hurting in todays economy so no luck there. I feel like i'm running out of options and I don't know where to turn. Does ANYONE have any advice where I could obtain funding for this event? Angel investing, lending, etc. I am open to any suggestions for I am very passionate about this venture.

    Thanks!
     
  2. Rocky

    Rocky
    uix_expand uix_collapse
    Member

    Joined:
    Nov 3, 2012
    Messages:
    675
    Likes Received:
    182
    Isn't it possible to take some amount as loan and take the services on credit and pay for them as soon as you earn from the concert. The credit period would also be less since you earn as soon as the event is done and you pay the debts off.

    Simultaneously, since you would receiving the fees for the concert ahead of the concert you can use the same to pay for your expenses.

    And you can also contact local businesses to sponsor your event for a branding opportunity and receive help from them.

    How does that sound?
     
    • Like Like x 1
  3. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    Have you spoken to your bank yet B.Tartaglia?

    You previously received some helpful advice in this thread. Have you considered any of those options?

    Good luck with getting the investment you need.
     
  4. scifi

    scifi
    uix_expand uix_collapse
    Member

    Joined:
    Nov 2, 2008
    Messages:
    1,207
    Likes Received:
    44
    Only your friends can help you this time....or some high net worth individual who will not mind taking such level of risk......
     
  5. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    Why do you say that, lots of organisations, such as banks, venture capitalists, credit unions, government enterprise agencies, etc, provide funding to businesses all the time?
     
  6. LordRoco

    LordRoco
    uix_expand uix_collapse
    Member

    Joined:
    Feb 9, 2013
    Messages:
    154
    Likes Received:
    27
    You have a great plan and a sufficiently infectious enthusiasm, but not the enough capital. Here is what I suggest - I am sure you might have considered about the possibility of your event not being a big profit extractor. What happens when you are not able to pay back the money your sponsor has invested? You loose YOUR reputation as well as your production company is doomed forever. The best possible solution are your friends and private lenders. It will not be a good idea to arrange a sponsor when you dont have enough capital to return back his/her loss, but when you take it from your friends or private lenders ( the collateral can be anything like a salary certificate?) you have the option of paying it back in monthly installations with the required interests. While banks may not be very keen in granting you loans, private lenders would be! You just need to search for the proper ones :D
     
  7. scifi

    scifi
    uix_expand uix_collapse
    Member

    Joined:
    Nov 2, 2008
    Messages:
    1,207
    Likes Received:
    44
    I am talking peculiarly for his case on practical grounds...tartaglia needs money for the concert which is risky...he also don't have any personal credit I the market...I don't think any bank or organisation will come forward to offer help in concerts..

    Funding to business is different level and task all together than concerts....
     

Share This Page