Home› Home, Law & Money
If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Options

Money to start a business?

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
Right Im 18, just finishing my A levels, and would like to open a shop!

Im thinking this probably wont be realistic as I have no money and I doubt a bank would give me any? Would anyone care to tell me I am wrong?!

I only want something small....our town needs a dvd rental shop....hmmmm

Comments

  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    you've got an idea. put together a marketing plan. you can get help to set up a business. there are charities/ sectors in education/ banks - ect which could help with funding. tho' of course having some collateral would help esp. with a bank loan.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Duke of Edinborough Scheme
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    prince's trust might help.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    When I was a kid there used to be this guy that had a "video van" by that I mean he would drive around in something like a mobile video shop I suppose! Basically it was the same principle as a video shop but by van...a bit like an ice cream van! It was really good, I know its not exactly what you want but it might be a good place to start with dvd hire! Once you start generating turnover you will be able to use profits to help get a shop and use the figures to approach a bank.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    .
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DVD rental ? I'd have a look into other ideas if I were you. Look at something which has the potential to be a little more long term.

    In terms of funding, Princes Trust is probably your best option to start with.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The other option is to try and get any sort of job where you'll be getting management and business training, which may put you in a better position to get a loan in a few years. Because whilst they're investing in a business plan, equally, they're investing in the person that's supposed to make it happen. I'm no expert, but I expect that private DVD rental shops have massive startup costs, so the chances of you getting a loan straight out of college for something that big would be pretty low. But if you prove that you as an individual are up to managing a business (lots of people manage nightclubs at a young age, for example) then you're less of a risk. And the other option would be to open a franchise business rather than a private one. Here's a list of franchise businesses in the UK. I'm not sure exactly how they work though.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The jobcentre give people help in setting up their own business, you could probably talk to them about your options.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I'm With Stupid wrote: »
    I'm no expert, but I expect that private DVD rental shops have massive startup costs

    Yeah, this is what I was thinking. Realistically, IMO dvd rental stores only have a few years before they are obselete. Meaning, you'll only have a few years to repay the money for the initial stock purchase, which like IWS said - won't be cheap.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The only way anyone will consider lending you money is if you have a really solid business plan and some money behind you- you might need a homeowner (perhaps your parents?) to act as guarantors on rent etc.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Dobbin wrote: »
    The only way anyone will consider lending you money is if you have a really solid business plan and some money behind you- you might need a homeowner (perhaps your parents?) to act as guarantors on rent etc.

    No thats the only way a BANK would look to lend any funds.

    Princes Trust will be the best place to start for the OP situation.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    deceelpool wrote: »
    No thats the only way a BANK would look to lend any funds.

    Princes Trust will be the best place to start for the OP situation.

    True, but getting backing from the prince's trust isn't easy- I have a friend who tried and was dismissed as they felt she wasn't worthy of it.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    No not easy, TBH doubt they'd back a DVD rental venture either, but if the OP looks into other options and can generate a decent, solid plan - the PT would be the best option.
  • Options
    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    As has already been mentioned, you'll need a solid business plan if you're going to be borrowing any amount of money for this venture. Not sure if you've considered this already or not, but if you really are set on opening a DVD rental store, have you considered franchising? To my knowledge this is a far better way of entering this particular industry than going it alone. As others have said though, it won't be cheap. If you can provide the bank with some realistic profit projections though, having a solid franchise brand behind you will help your cause no end.

    You don't actually need any security to take out a bank loan, as all the major banks will allow you to borrow through the DTI's "Small Firms Loan Guarantee" scheme. Essentially, the DTI will secure 75% of the loan amount, with either yourself putting up a bit of the cash or the bank taking on a certain unsecured amount. You do need to pay a small premium to the DTA (via the bank) for securing the loan however.

    I have personally borrowed six figures from one of the major banks through this scheme. I was purchasing a Subway franchise at the time, so had the backing of the brand obviously, but I still had to produce five year profit projections, marketing plans etc. It's hard work preparing all the necessary paperwork, but it can definitely be done if you can prove you're idea's a good one and you're capable of running the business profitably.

    Most banks will quite happily give you all the information you need if you go in and ask, you might even get a free coffee if you're lucky! Business banking is big business for them remember!
Sign In or Register to comment.