What Are The Chances Of Being Given A Loan?
Me and a friend are planning on starting our own business. We have a business plan, which we think will work and can be successful. The only problem is we need to take out bank loans to start up. We are both only 17. We have no business experience, or any qualifications which are relevant to the business.
What are the chances of us being given a loan?
Thank you.
Tags: Being, chances, given, loan
0%
You can not enter in to a contract until you are 18.
Without experience and/or qualifications your chances will still probably be 0% after you turn 18.
How much experience do you bring to the table at age 17? What track record do you have for managing a budget, a business, product development, marketing, sales? If you sold cookies door to door, mention that you are not afraid of rejection. If you taught others a skill or a craft or something, mention that in your business plan as the ability to train others. If you have earned money doing odd jobs, maintained a budget, saved some of it, and contribute to family expenses, put that in your business plan as financial management experience.
Do you have anything to show that you are equipped to carry out the business? Any awards, articles written about you, trophies for accomplishments in that area of endeavor?
Now, ask yourself, “Who do I know that has invested the most in me so far?” FAMILY. If you and your friend have gone to the trouble to prepare a business plan, make a list of all your employed or retired family members, especially those who own a business of their own. Go to everyone on your list and DON’T ask for money.
Ask for their advice on how to start this business right! Give them a copy of your business plan, tell them you want them to be on a board of advisors and would appreciate their counsel. When they come back to you with advice, don’t be defensive, just write it all down. You are not making a sale but getting ideas, so nothing they have to offer can hurt you. If they tell you you are wasting their time, ask them how would they go about it? If they are just totally negative, move on and don’t take it personal.
Whenever possible, let them see writing down what they have to say. Even record it. This is all about establishing credibility and showing you are willing to learn. Like most people, you will have to prove yourselves by picking up jobs and sticking to them for a while. Use your money from working to contribute toward rent and groceries and keep a budget. Build up your own capital by establishing a savings account. Don’t use credit cards to start a business. You will bankrupt yourself, lose credibility, and hurt your own dreams. Despite the fact that 9 out of 10 businessess fail in the first two years, realize its because the business owner did not invest in continuing education. Keep going to school and major in courses that move you toward your goal. Take accounting, communications, marketing, sales, management, insurance, real estate, finance, organizational theory, psychology, and complete a degree. All of this comes into play as you are moving toward starting, growing, and keeping a business. If you can’t commit to this level, you may not be ready. That doesn’t mean you won’t be in five or ten years.
Remember, your dreams are yours and are for you to accomplish. Every person you go to for financial assistance will want to direct how you do it. That can be good or bad depending on a number of factors.