Finding cash for your business.Q A I am in the process of writing a business plan for a hair salon A hair salon (also called 'Hairdresser' and 'Hair Parlour')is a place where one goes to get their hair cut, as well as styled, highlighted or coloured. There are many different types of hair salons that one can choose to go to. that I want to open in about six months to a year. I'm not exactly sure if I should seek grant money or take out a business loan. Please help. --A. DaSilva Montclair, NJ I would definitely consider finding grant money or using other funding alternatives to start your salon before you seek a business loan from a bank. Since banks have strict loan requirements, you usually go that route when your business is up and running, the money is coming in, and you need to finance your growth. Here are a few financing options worth considering: * The second most common method of funding your startup is finding friends and family members who would be willing to invest in your hair salon. * Microloan mi·cro·loan n. A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country. programs are worth looking into if you are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. $35,000 or less. For more information, go to www.sba.gov/financing/sbaloan/micro loans.htm * Another option worth considering is vendor financing Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. Find a company that produces hair salon products, and make arrangements to borrow money from them. In return, you would be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to buy the supplier's products. Also, check out www.blackenterprise .com if you want more information. Use the search field and took for stories on "Finding Cash for Your Business." There is also a link that talks about business plans. --James C, Johnson Mail your small business questions to Savvy Solutions, BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to johnsonj@blackenterprise.com. |
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