How to get my hair salon funded

How to get funding for your hair and beauty salon business.

Get Funded: Top Bankable Ways to Get Funding For Your Hair and Beauty Salon Business

One of the major concerns for a potential business owner is funding. You have to worry about how you will come up with the capital required to get all the things that you need, and you also have to worry about sustaining the business with your money before the profits start to roll in. The beauty salon business is no exception to all of this, and a lot of prospective beauty salon business owners have been discouraged from starting the business because they couldn’t figure out a way to get the funds needed to get their business moving.

How to get my hair salon funded

The purpose of this guide is to provide some insight into all of this. The information provided forthwith should give you a better understanding of the most reliable ways to get funding for your beauty salon business. We will discuss the sort of financing that you need, the different ways you could get that financing and the importance of having a business plan involved.

Capital

First of all, you need funding for the pre-operation matters. You need money to set up a shop, and the cost of this would depend on the size of the shop and its location. If you already have a house located in a suitable location, you may use it depending on the rules and regulations of your city, but if you don’t, then you’d have to rent or lease a space. When renting this space, you need to make sure that it is in a location where you would enjoy good patronage.

You will also need capital for your salon supplies, equipment, furnishings and interior decorations. Professional fees also need to be taken care of from the start, so you must plan to pay for legal fees and accounting fees.

There are different departments to which all of this initial funding will go. But first of all, you need to think about the type of financing that you believe is most suitable for your needs. There are different types of capital, and each type should ideally be applied to varying points of starting up your business.

The different types of capital funding are:

Seed Capital: you use this money for initial research and planning

Start-up Capital: also known as “working capital.” You use this money to rent your location, buy your equipment and supplies, and put in all the fittings necessary to make it look like a proper beauty salon. All of this should be taken care of within the first year of the business.

Expansion Capital: also known as “Mezzanine” capital, this is funding used to grow your business to newer levels after achieving a certain amount of success at one level. This may include buying more equipment, adding a spa section if you see the need, and creating new spaces in the salon where you can employ other stylists to help attend to your increasing number of customers.

Bridge Capital: as the name suggests, bridge capital is the money that you use to bridge the space between your current level of financing and the next.

At various stages, each one of these areas will have some measure of impact on the growth of your beauty salon business. Most prospective beauty salon business owners will be focused on obtaining capital, so this is the area that we will pay the most attention to.

When you get the most basic needs out of the way, you will still need funding to maintain the business for the period that it takes to mature and begin to sustain itself – it is sort of the same approach with raising a baby if you want a practical example. So, what are the things that you may need to spend money on while the business “cuts its teeth,” so to speak?

  • Staff payments (because you’ll definitely need an extra hand or two)
  • Light, water and other utility bills
  • Maintenance of your dryers, sanitation tools and other equipment
  • Tax
  • Insurance

First of all, make sure that you have enough money to pay yourself. You don’t want to be running low on cash to the point where you can’t take care of your own needs. Then, make sure that you have enough funds left to sustain the business. The first year of operation will be very crucial to the overall success of your business, so it is vital that you have the funds to get through it.

A lot of small businesses fail within the first year, and while poor management is a reason for some of these failures, a large number of them were down to a lack of proper financial planning. Make sure that you have enough to deal with any expected and unexpected problems that may rise up along the way, so you don’t have to give up on the dream of owning a hair and beauty salon business before it has really taken off.

Plan for things such as paying your staff, restocking supplies, routine maintenance of equipment, and payment of utility bills; basically, ensure that you have more than it appears that you need to be sure that you’re prepared for the unexpected.

Now that you have information about the different kinds of funding that you need at different stages of your business, how exactly do you go about financing it? For capital finding, you can choose one of these two options: Debt Capital and Equity Capital.

Debt capital funding requires you to pay back the loan that you’re granted over a specific period. The payment will include added interest and possibly some other additional fees. When you’re granted a debt capital fund, you retain full rights to the ownership of your business, but you have a legal obligation to pay back the loan as and when due.

Equity Capital works differently. When you present your case to specific people/firms to request for a loan, they may decide to grant it to you on the basis that they will own a part of the business. This means that, if your hair and beauty salon business becomes a massive success, you will not be the only one to reap the rewards. Everyone that provided this equity capital to you will have a stake in the business, depending on pre-agreed terms.

While this may save you the worry of unpaid debts, you need to make an important decision to judge if the capital is worth sacrificing the full ownership of your business for. If you firmly believe that you will be able to pay back the loan, then it is inadvisable that you take such a deal as it may be a massive loss on your part in the long run.

Ask yourself these questions to help you to decide if you’re ready to take a debt capital fund:

  • Can you get more money from the lender if the original loan is not enough?
  • Can you pay off the debt monthly?
  • Would you qualify for debt financing?
  • Are you ready to lose your valuables if it turns out that you cannot pay off the debt?

For equity financing, ask yourself these questions:

  • Would the investor be genuinely interested in what you have to offer?
  • Will you have any issues with sharing consequent profits with the investor?
  • Are you okay with submitting your financial information for scrutiny?
  • Will you be able to provide all the information that the investor requests for?

If you have asked yourself these questions and are still confused about what to do, or if the options just don’t sound good to you, then there’s good news. You should know that there are alternate considerations that you can make about where to get funding from. Some of these choices include:

  • Your personal savings
  • A bank loan
  • Borrowing from friends and family
  • Collaborating with a partner that you trust and using their funds
  • Using a commercial finance company
  • Venture Capital Financing

You should note that the chances that a bank would offer you a loan larger than the funds you could get from an investor are very slim. If you need a significant amount of money, an investor would still be a more realistic consideration. However, the chances that you will need more money for a beauty salon business than a bank loan can provide are also slim.

Now, we’ll take a brief look at two common options from the list above for clarity.

Personal Savings

The amount of money that you’ve got stashed away would determine if this is a real source for all the funding you need to start-up your beauty salon business. If you have enough money, then this is definitely the best option for you.

You don’t have to worry about paying off debts, and you can keep the full ownership of your business with all future profits without involving anyone else. This becomes even more realistic if your business plan is set up in a way which does not require you to hire additional staff or pay too much for fees and licensing.

Bank Loan

Traditional bank loans are possibly the most commonly used method for beauty salon financing from outside sources. However, they require that you must be willing to adhere by their strict guidelines of application and re-payment. Failure to do this may lead to the loss of your business in the long run, which would be devastating.

Before applying for a bank loan, you have to consider these things:

  • How long should the credit be? (Payment duration)
  • What exactly are the things that you need the loan for?
  • What can you provide as collateral?
  • Are the terms and conditions of the loan feasible for you?

These questions will help you decide if you really want or need to take out the loan. If the answers to the questions are all positive and you are ready to start approaching banks for a loan, these are the things that you must do:

  • Have your business plan ready
  • Call ahead for an appointment
  • Be professional
  • Prepare to answer any related questions
  • Be confident
  • Do not behave in a manner that presents you as desperate for the loan
  • Be truthful, straightforward and matter-of-fact
  • Dress appropriately

Borrowing from Friends/Family

You may choose the route of getting funding from the people close to you. The major advantage of this approach is that they are more likely to be inclined toward listening to your proposition and putting faith in you. However, you will still need to convince them that the business is going to be a success.

You need to be very transparent about how you plan to pay back the money and the time-frame that they should expect the payment. All you have to do is be convincing enough.

This method works for some people, but there is always the tendency that it can put a strain on your existing relationship with the person that you borrow from. On the flip side, if it all works out, it will strengthen your relationship.

Collaboration

Particularly in dire situations, you may feel forced to give up sole ownership of your business to get funding for it. There may be a potential investor who you can convince – or may just be willing – to invest in your business in return for a partnership.

This means that eventual profits and any future success of the business will be shared between you and your partner, so you need to be absolutely sure about any decision to take this step. If you are convinced that you want to, then you may approach your investor to discuss terms.

Using a Commercial Finance Company

Commercial finance is mostly offered by banks; although there are other finance companies that offer them (such as the Small Business Administration called the SBA). The major difference between this and a regular bank loan is that some of these commercial finance companies already have existing loan offers to small businesses that you only have to take advantage of.

Usually, you secure the loan with business assets such as receivables from invoices, real estate, equipment or supplies. In a case where the loan is unsecured, the lender will basically be pinning their hopes on the cash flow generated by your business for repayment.

Venture Capital Financing

Obtaining venture capital funds is possibly the most complicated option on this list. The way VC funding works, investors put their funds into a VC firm that helps them to invest these funds into high-risk, high-return businesses (which are startups a lot of the time).

As a beauty salon business owner, applying for this type of funding will require that you do a lot of research about the VC firms offering opportunities to your type of business. When you have this information, you need to prepare a pitch that you will present to the firm of your choice as an application. Typically, it is expected that this pitch will include your business plan.

Additionally, you must be prepared for the fact that it may be very hard to land a meeting with the principal of the VC firm, and the whole process could last for several weeks. The process looks something like this:

  • Setting up a meeting with the principal of the VC firm
  • Follow-up meetings and conversations (lasting for weeks)
  • Presentation of your pitch to all the partners of the VC fund that you are applying for
  • Issuance and negotiation of a term sheet
  • Drafting and negotiation of legal documents serving as evidence of the investment by lawyers on both sides.

Before your application, you need to familiarize yourself with the term sheet and other documents involved in the process of obtaining the investment.

Why You Need a Business Plan

All of the methods by which you can acquire funding will require that you have a business plan in place. For instance, if you were going to take a loan from the bank, the bank would need to see the layout of your business plan. They need this information to be able to decipher for themselves if your idea for a business is solid and feasible enough to guarantee that you will be able to pay back the money that you are loaning from them.

Make no mistake, the bank does not necessarily care about your business, they only care about getting their money back for you and you need a business plan to be able to prove that you will deliver. This applies to any other financial institutions that you may want to take a loan from too.

In the same vein, if you are planning to borrow the money that you need from your friends or family, or to look for a partner that can bear the financial burden of funding the business in exchange for a shared ownership of it, you would also need a business plan.

Anybody that is going to invest their hard-earned money into something will need quite a bit of convincing, and there is no better way to show seriousness, professionalism and organization than presenting your business plan to them.by doing this, you are literally showing them what they are investing in, and if your business plan is well-written, they should be easily convinced and re-assured.

You may think that writing a business plan is something that you can easily learn by yourself and take care of. However, writing an effective one is not something that can be learned on a whim. It is an extremely technical job and a lot of research and time is put into it – even by professionals.

hair salon money

There are a lot of reasons why purchasing a business plan template is a lot more reasonable than trying to write one or hiring a business plan writer. Some of the major reasons include Cost (of hiring a writer), Time (spent on research for writing by yourself), Format and Language.

Cost

This refers to running costs of hiring a business plan writer to do the job for you. Business plan writers charge a ton of money – running into thousands of dollars most of the time – and if you’re just starting out your business, this is really not the most financially scrupulous decision. You could be setting yourself back by a lot of money before you’ve even given your business the chance to grow into something substantial enough to draw profit.

Time

This refers to any decision you make involving writing out the business plan by yourself. As we suggested already, business plan writing is an art that cannot be learned effectively within any short period of time. It is extremely serious and tedious business, and this is why business plan writers charge tons of money for it. Now imagine an amateur trying to get the job done for yourself.

The amount of time that you would spend writing your business plan is a luxury that you cannot afford. It will simply take too much time than is worth it to write a business plan by yourself, considering all the learning and research that you have to do, and it really would be a lot more efficient to work with a template that is guaranteed to achieve the same purpose rather than take a risk that may not turn out with a positive result.

Format

Approaches to writing business plans for specific businesses change over time, so there is the need to be constantly aware of the formats that are currently in place. This is information that may not be readily available if you try to research by yourself.

Language

Every business has its “lingo,” and while this may seem inconsequential on a surface level, it shows how much a person knows about what they are working on. If you attempt to force the process and write a business plan by yourself, it is doubtful that you will be familiar with the sort of language that is expected of professionals in the art and anybody that looks through your plan may be able to sniff out the difference from a mile away.

Needless to say, this would not look good for you in situations where you’re trying to present your business plan to possibly get a loan from the bank or get funding from an investor. If they have any reason to believe that you are not well immersed in the business that you are trying to pitch to them, they may be unwilling to part with the funds that you need to get your business off the ground or to help it grow.

If you go on the Internet, there are a large number of companies that offer business sample templates for sale, and it may be hard to filter through them to find the quality options suitable for your beauty salon business. As a specialized business plan writing guide, Black Box Business Plans offers the most comprehensive and effective business plan templates.

Hopefully, this guide has been able to shed enough light into the introductory aspects of getting funds for your beauty salon business. All that is left for you to do is consider the advice given and follow prescribed steps where necessary. Do not forget that whatever you do, you absolutely need to have a business plan as the first step in your beauty salon venture. Best of luck!

To learn more about our comprehensive beauty salon business plan template click here.

 

 

How to start a fashion boutique store

How do I start a retail fashion boutique business?

Whether you’re a fashionista with a passion for fashion or an ambitious self-starter who dreams of owning their own budding business, starting your own online fashion boutique can be a rewarding experience.

Now that you’re interested in the online fashion boutique business, what’s first? In order to start an online fashion boutique, you need to choose products & supplier/s, define your target audience, select your platform/market, and ultimately, have a solid business plan that can help you with all of the above and even more.

How to start a fashion boutique store

Choosing Products & Suppliers 

Are you planning on only selling custom, handmade clothing? Do you want to ensure that all of your products are 100% organic or made in the U.S.? Before you can move on to anything else for your business, the first step is to define your criteria for your products, and then find a seller who best meets your budget.

As a retailer, you will have the benefit of being able to purchase items in bulk, which will lower your overhead and enable you to increase your profit margins, so browsing through wholesale options and contacting wholesalers regarding bulk discounts should be one of your top priorities.

One of the great things about retail is that many items can be sold at an incredibly high mark up compared to the price that you paid for them, so if you choose the right supplier and the right products, you can look forward to pure profit.

Defining Your Target Audience

Now that you have at least a general idea of what your products will be, you need to define your target audience. By defining your target audience, you will be better equipped to advertise to and communicate with your customers.

You will also gain a better understanding of what kinds of products your customers may or may not be interested in so that you can avoid wasting time and money on products that sit on the shelf.

Selecting A Market/Platform 

Whether the concept of selling items is completely new to you, or you’re an old pro, the internet offers a vast array of options that are perfect for everyone including brand new sellers who have absolutely no experience with web design, established retailers who have the means to hire a full team of web designers and sales people… and everyone in between.

If you’d consider yourself as completely clueless on where to start, turning to an established e-commerce site may be your best bet. These full service platforms offer sellers a full range of tools they need to get started including templated profile pages and digital storefronts, payment processing tools, tools for packaging & shipping, assistance with customer service disputes, and so much more.

If you’ve already been there and done that, you can also start your own site from scratch, but keep in mind that you will need to be prepared to handle a variety of challenges on your own including web hosting & traffic, design & content, advertising, e-commerce & payment processing, and customer service, just to name a few.

How to start a fashion boutique store

Following A Solid Business Plan

A solid business plan will not only help you with all of the items above, but will also assist you in being able to get funding from potential investors so that you will be able to seamlessly grow your business.

Professional business plans take days… weeks… even months to write, and as a busy entrepreneur, the last thing you have is free time.

But the last thing you want to do is get your business up and running and find out that you forgot to keep track of inventory or operating expenses or something worse.

To learn more about how to get your own fashion boutique business plan written check out our Retail Fashion business plan template by clicking here. 

How to get funding for your retail fashion store

Get Funded: Top Bankable Ways to Get Funding For Your Retail Fashion Boutique Business

One of the major concerns for a potential business owner is funding. You have to worry about how you will come up with the capital required to get all the things that you need, and you also have to worry about sustaining the business with your money before the profits start to roll in. The retail fashion boutique business is no exception to all of this, and a lot of prospective retail fashion business owners have been discouraged from starting the business because they couldn’t figure out a way to get the funds needed to get their business on track.

The purpose of this guide is to provide some insight into all of this. The information provided forthwith should give you a better understanding of the most reliable ways to get funding for your retail fashion business. We will discuss the sort of financing that you need, the different ways you could get that financing and the importance of having a business plan involved.

How to get funding for your retail clothing store

Capital

First of all, you need funding for the pre-operation matters. You need funds to set up the boutique, and the cost of this would depend on the size of the shop, its location, what type and how much clothing you are looking to stock and how stylish you want your fashion boutique to look. You also need to consider a space to rent or lease in a suitable location, preferably in a busy shopping area, where you could just display your wares to capture the attention of shoppers.

You will also need capital to buy your first set of clothes, shoes and accessories, manikins, dressing-room mirrors, furnishings and interior decorations. Professional fees also need to be taken care of from the start, so you must plan to pay for legal fees and accounting fees.

There are different departments to which all of this initial funding will go. But first of all, you need to think about the type of financing that you believe is most suitable for your needs. There are different types of capital, and each type should ideally be applied to varying points of starting up your business.

The different types of capital funding are:

Seed Capital: you use this money for initial research and planning

Start-up Capital: also known as “working capital.” You use this money to rent your location, buy your first set of goods, and put in all the fittings necessary to make the place look like a real fashion house. All of this should be taken care of within the first year of the business.

Expansion Capital: also known as “Mezzanine” capital, this is funding used to grow your business to newer levels after achieving a certain amount of success at one level. This may include buying more goods, adding products from more designers according to popular demand, employing sales assistants, and getting an electronic billing process in place, to keep track of inflow of funds.

Bridge Capital: as the name suggests, bridge capital is the money that you use to bridge the space between your current level of financing and the next.

At various stages, each one of these areas will have some measure of impact on the growth of your retail fashion boutique business. Most prospective fashion store business owners will be focused on obtaining capital, so this is the area that we will pay the most attention to.

When you get the most basic needs out of the way, you will still need funding to maintain the business for the period that it takes to mature and begin to sustain itself – it is sort of the same approach with raising a baby if you want a practical example. So, what are the things that you may need to spend money on while the business “cuts its teeth,” so to speak?

  • Stocking up your boutique
  • Paying your staff
  • Buying extra goods according to demand for particular designers
  • Light, water and other utility bills
  • Tax
  • Insurance (if applicable)

First of all, make sure that you have enough money to pay yourself. You don’t want to be running low on cash to the point where you can’t take care of your own needs. Then, make sure that you have enough funds left to sustain the business. The first year of operation will be very crucial to the overall success of your business, so it is vital that you have the funds to get through it.

A lot of small businesses fail within the first year, and while poor management is a reason for some of these failures, a large number of them were down to a lack of proper financial planning. Make sure that you have enough to deal with any expected and unexpected problems that may rise up along the way, so you don’t have to give up on the dream of owning a hair and fashion store business before it has really taken off.

Plan for things such as paying your staff, restocking your goods, buying new manikins, and payment of utility bills; basically, ensure that you have more than it appears that you need to be sure that you’re prepared for the unexpected.

Now that you have information about the different kinds of funding that you need at different stages of your business, how exactly do you go about financing it? For capital finding, you can choose one of these two options: Debt Capital and Equity Capital.

Debt capital funding requires you to pay back the loan that you’re granted over a specific period. The payment will include added interest and possibly some other additional fees. When you’re granted a debt capital fund, you retain full rights to the ownership of your business, but you have a legal obligation to pay back the loan as and when due.

Equity Capital works differently. When you present your case to specific people/firms to request for a loan, they may decide to grant it to you on the basis that they will own a part of the business. This means that, if your hair and fashion boutique business becomes a massive success, you will not be the only one to reap the rewards. Everyone that provided this equity capital to you will have a stake in the business, depending on pre-agreed terms.

While this may save you the worry of unpaid debts, you need to make an important decision to judge if the capital is worth sacrificing the full ownership of your business for. If you firmly believe that you will be able to pay back the loan, then it is inadvisable that you take such a deal as it may be a massive loss on your part in the long run.

Ask yourself these questions to help you to decide if you’re ready to take a debt capital fund:

  • Can you get more money from the lender if the original loan is not enough?
  • Can you pay off the debt monthly?
  • Would you qualify for debt financing?
  • Are you ready to lose your valuables if it turns out that you cannot pay off the debt?

For equity financing, ask yourself these questions:

  • Would the investor be genuinely interested in what you have to offer?
  • Will you have any issues with sharing consequent profits with the investor?
  • Are you okay with submitting your financial information for scrutiny?
  • Will you be able to provide all the information that the investor requests for?

If you have asked yourself these questions and are still confused about what to do, or if the options just don’t sound good to you, then there’s good news. You should know that there are alternate considerations that you can make about where to get funding from. Some of these choices include:

  • Your personal savings
  • A bank loan
  • Borrowing from friends and family
  • Collaborating with a partner that you trust and using their funds
  • Using a commercial finance company
  • Venture Capital Financing

You should note that the chances that a bank would offer you a loan larger than the funds you could get from an investor are very slim. If you need a significant amount of money, an investor would still be a more realistic consideration. However, the chances that you will need more money for a fashion boutique business than a bank loan can provide are also slim.

Now, we’ll take a brief look at two common options from the list above for clarity.

Personal Savings

The amount of money that you’ve got stashed away would determine if this is a real source for all the funding you need to start-up your fashion store business. If you have enough money, then this is definitely the best option for you.

You don’t have to worry about paying off debts, and you can keep the full ownership of your business with all future profits without involving anyone else. This becomes even more realistic if your business plan is set up in a way which does not require you to hire additional staff or pay too much for fees and licensing.

Bank Loan

Traditional bank loans are possibly the most commonly used method for retail fashion boutique financing from outside sources. However, they require that you must be willing to adhere by their strict guidelines of application and re-payment. Failure to do this may lead to the loss of your business in the long run, which would be devastating.

Before applying for a bank loan, you have to consider these things:

  • How long should the credit be? (Payment duration)
  • What exactly are the things that you need the loan for?
  • What can you provide as collateral?
  • Are the terms and conditions of the loan feasible for you?

These questions will help you decide if you really want or need to take out the loan. If the answers to the questions are all positive and you are ready to start approaching banks for a loan, these are the things that you must do:

  • Have your business plan ready
  • Call ahead for an appointment
  • Be professional
  • Prepare to answer any related questions
  • Be confident
  • Do not behave in a manner that presents you as desperate for the loan
  • Be truthful, straightforward and matter-of-fact
  • Dress appropriately

Borrowing from Friends/Family

You may choose the route of getting funding from the people close to you. The major advantage of this approach is that they are more likely to be inclined toward listening to your proposition and putting faith in you. However, you will still need to convince them that the business is going to be a success.

You need to be very transparent about how you plan to pay back the money and the time-frame that they should expect the payment. All you have to do is be convincing enough.

This method works for some people, but there is always the tendency that it can put a strain on your existing relationship with the person that you borrow from. On the flip side, if it all works out, it will strengthen your relationship.

Collaboration

Particularly in dire situations, you may feel forced to give up sole ownership of your business to get funding for it. There may be a potential investor who you can convince – or may just be willing – to invest in your business in return for a partnership.

This means that eventual profits and any future success of the business will be shared between you and your partner, so you need to be absolutely sure about any decision to take this step. If you are convinced that you want to, then you may approach your investor to discuss terms.

Using a Commercial Finance Company

Commercial finance is mostly offered by banks; although there are other finance companies that offer them (such as the Small Business Administration called the SBA). The major difference between this and a regular bank loan is that some of these commercial finance companies already have existing loan offers to small businesses that you only have to take advantage of.

Usually, you secure the loan with business assets such as receivables from invoices, real estate, equipment or supplies. In a case where the loan is unsecured, the lender will basically be pinning their hopes on the cash flow generated by your business for repayment.

Venture Capital Financing

Obtaining venture capital funds is possibly the most complicated option on this list. The way VC funding works, investors put their funds into a VC firm that helps them to invest these funds into high-risk, high-return businesses (which are startups a lot of the time).

As a retail fashion boutique business owner, applying for this type of funding will require that you do a lot of research about the VC firms offering opportunities to your type of business. When you have this information, you need to prepare a pitch that you will present to the firm of your choice as an application. Typically, it is expected that this pitch will include your business plan.

Additionally, you must be prepared for the fact that it may be very hard to land a meeting with the principal of the VC firm, and the whole process could last for several weeks. The process looks something like this:

  • Setting up a meeting with the principal of the VC firm
  • Follow-up meetings and conversations (lasting for weeks)
  • Presentation of your pitch to all the partners of the VC fund that you are applying for
  • Issuance and negotiation of a term sheet
  • Drafting and negotiation of legal documents serving as evidence of the investment by lawyers on both sides.

Before your application, you need to familiarize yourself with the term sheet and other documents involved in the process of obtaining the investment.

Why You Need a Business Plan

All of the methods by which you can acquire funding will require that you have a business plan in place. For instance, if you were going to take a loan from the bank, the bank would need to see the layout of your business plan. They need this information to be able to decipher for themselves if your idea for a business is solid and feasible enough to guarantee that you will be able to pay back the money that you are loaning from them.

Make no mistake, the bank does not necessarily care about your business, they only care about getting their money back for you and you need a business plan to be able to prove that you will deliver. This applies to any other financial institutions that you may want to take a loan from too.

In the same vein, if you are planning to borrow the money that you need from your friends or family, or to look for a partner that can bear the financial burden of funding the business in exchange for a shared ownership of it, you would also need a business plan.

Anybody that is going to invest their hard-earned money into something will need quite a bit of convincing, and there is no better way to show seriousness, professionalism and organization than presenting your business plan to them.by doing this, you are literally showing them what they are investing in, and if your business plan is well-written, they should be easily convinced and re-assured.

You may think that writing a business plan is something that you can easily learn by yourself and take care of. However, writing an effective one is not something that can be learned on a whim. It is an extremely technical job and a lot of research and time is put into it – even by professionals.

There are a lot of reasons why purchasing a business plan template is a lot more reasonable than trying to write one or hiring a business plan writer. Some of the major reasons include Cost (of hiring a writer), Time (spent on research for writing by yourself), Format and Language.

Cost

This refers to running costs of hiring a business plan writer to do the job for you. Business plan writers charge a ton of money – running into thousands of dollars most of the time – and if you’re just starting out your business, this is really not the most financially scrupulous decision. You could be setting yourself back by a lot of money before you’ve even given your business the chance to grow into something substantial enough to draw profit.

Time

This refers to any decision you make involving writing out the business plan by yourself. As we suggested already, business plan writing is an art that cannot be learned effectively within any short period of time. It is extremely serious and tedious business, and this is why business plan writers charge tons of money for it. Now imagine an amateur trying to get the job done for yourself.

The amount of time that you would spend writing your business plan is a luxury that you cannot afford. It will simply take too much time than is worth it to write a business plan by yourself, considering all the learning and research that you have to do, and it really would be a lot more efficient to work with a template that is guaranteed to achieve the same purpose rather than take a risk that may not turn out with a positive result.

Format

Approaches to writing business plans for specific businesses change over time, so there is the need to be constantly aware of the formats that are currently in place. This is information that may not be readily available if you try to research by yourself.

Language

Every business has its “lingo,” and while this may seem inconsequential on a surface level, it shows how much a person knows about what they are working on. If you attempt to force the process and write a business plan by yourself, it is doubtful that you will be familiar with the sort of language that is expected of professionals in the art and anybody that looks through your plan may be able to sniff out the difference from a mile away.

Needless to say, this would not look good for you in situations where you’re trying to present your business plan to possibly get a loan from the bank or get funding from an investor. If they have any reason to believe that you are not well immersed in the business that you are trying to pitch to them, they may be unwilling to part with the funds that you need to get your business off the ground or to help it grow.

If you go on the Internet, there are a large number of companies that offer business sample templates for sale, and it may be hard to filter through them to find the quality options suitable for your retail fashion store business. As a specialized business plan writing guide, Black Box Business Plans offers the most comprehensive and effective business plan templates.

Hopefully, this guide has been able to shed enough light into the introductory aspects of getting funds for your retail fashion boutique business. All that is left for you to do is consider the advice given and follow prescribed steps where necessary. Do not forget that whatever you do, you absolutely need to have a business plan as the first step in your fashion store venture. Best of luck!

To learn more about our comprehensive retail fashion store business plan template click here.

how to get funding for your retail fashion boutique  

 

How to start a commercial trucking business

How much does it cost to start a commercial trucking business?

How much does it cost to start a commercial trucking business?

Whether you have a passion for trucking, or you’re a self-starting entrepreneur who’s always looking for a new opportunity, starting and owning your own commercial trucking business can provide you with an exceptionally rewarding experience.

How to start a commercial trucking business

Before you even begin considering whether owning and operating a commercial trucking company is right for you, you probably want to know what kind of capital you need to get started. The basic lowest cost to start a commercial trucking business is around $20,000. (leasing your truck) and can go up to around $200,000 or more.

$25,000 will cover a full year of equipment leasing including insurance and fuel taxes, as well as all of the required registrations you need to get your business and vehicle/s legal. Of course, you can get started with a little less or a lot more, but it’s better to be safe than sorry.

Like you, I also wanted to know how much it costs to start (and run!) a commercial trucking business, and so I did my own research and decided to organize the information that I found into this blog post. I hope that this information will help anyone who is passionate about trucking or anyone who wants to start their own trucking business.

There are a variety of costs associated with starting a trucking company, including a number of fees that correspond to required certifications, registrations, and documents.

Below is a short list of must-haves before you can legally or physically even get started:

MC Number and/or US-DOT Number $300
BOC-3 Processing + Agent fee $20 — $40 (depending on agent)
Business Registration $50 — $500 (varies by state)
Unified Carrier Registration $69 (for 0 to 2 vehicles)
Trucking Insurance $1500 — $12000 annually
IRP Credential and IFTA Decal $~1710 + $10 annually
CDL (Commerical Driver License) $3,000 — $8,000 (if necessary)
Truck & Trailer $15,000 — $175,000 (lease or purchase)
TOTAL: $21,649 — $197,629+

 

MC Number and/or US-DOT Number

Before you can legally operate any carrier vehicle in the U.S., you’ll need to get operating authority from the Federal Motor Carrier Safety Administration. Depending on what kinds of goods you plan to transport with your vehicles, you’ll either need to an MC (motor carrier) number, or a US-DOT (United States Department Of Transportation) number.

There is currently a $300 filing fee associated with obtaining an MC or US-DOT number.

BOC-3 Processing + Agent Fee

You will also need to designate a legal agent upon which process may be served, if necessary. This needs to be handled by an agent, and so the specific fee depends on the agent you choose.

Business Registration

Like any business entity, you will need to choose how to set up your business (Limited Liability Corporation, Corporation, Incorporation, etc.)

Depending on the entity you choose and the state that you register in, the fees for this process will vary.

Unified Carrier Registration

All commercial vehicles that engage in the interstate transportation of goods must register their vehicles via UCR.

The fees for UCR vary on fleet size and weight.

Trucking Insurance

Similar to regular vehicles, drivers of commercial vehicles must also get their vehicles insured.

Also quite similar to consumer vehicle insurance, the cost of trucking insurance varies widely based on the driver’s experience level, the specific make and model of the truck, and the type of plan and carrier that you choose.

IRP Credential and IFTA Decal

IRP (International Registration Plan) credentials are required for any vehicles over 26,000 pounds gross vehicle weight or have 3 or more axles on the power unit that cross state lines, while IFTA (International Fuel Tax Agreement) is the related fuel tax decals and license for the same vehicles.

The cost of registering with IRP / IFTA is dependent upon the jurisdictional percentages and fees where apportionment is desired and the number of vehicles in the fleet.

CDL (Commerical Driver License)

Depending on whether you plan on driving yourself, or whether or not you already have a CDL, the cost for obtaining a CDL will vary by state and required training.

Truck & Trailer

Depending highly on whether you choose to outright purchase your vehicle/s or rent or lease the vehicle, the price range of a single truck can be anywhere from $15,000 to over $175,000.

You also have the option of buying used trucks. Similar to buying any regular vehicle, you need to weigh the pros and cons of buying new vehicles vs. used ones and decide if the cheaper price of the used vehicle outweighs any possible maintenance or performance issues that may arise.

With all these numbers flying around, the best thing you can do is to start with a commercial trucking business plan template that will keep you organized and get you funded. Click here to view our commercial trucking business plan template:  https://blackboxbusinessplans.com/downloads/trucking-transport-business-plan-template/

How much does it cost to start a trucking business?

How to Fund Your Substance Abuse Center

Opening a substance abuse center doesn’t only bring profitability – it is a business in which you have to think beyond only profits and money. It is a way to provide relief to those suffering from substance addiction. It comes with a great responsibility. But in order to start one, you require sufficient funds to open up and support your business. A kickass business plan is the best way to convince investors that your business is worth investing in. Be very smart when writing one, make sure you mention all the details regarding your business, your strategies for growth, marketing and promotion. If you’re starting a substance abuse center then here are a few options you may use in order to get the funds you need. You may pick any that is most comfortable and convenient for you.

Substance Abuse Center Business Plan

Banks

Banks are the safest bet. Apply for a loan in the bank that you fully trust. Make sure that you already have all required state approved licenses – you can never be too legal for a bank. Always be sure to read all the terms conditions before signing a contract with the bank.

Government Funded – Rehabs

If you’ve got the means for it then getting your substance abuse center funded by the government is a really convenient option. State-funded rehab centers are organizations that use government money, distributed by the state, to support people in recovery from substance abuse. They provide detox, treatment and support services to people without a lot of income or with inadequate or no insurance.

Private Investors

If for some reason you are unable to get funds from the above-mentioned options or are just not comfortable with it then go for private investors or angel investors. Private investors are in the business to loan out money to new entrepreneurs looking to start their businesses while angel investors are just wealthy individuals who may invest in your business just because they support the same idea or on a whim.

Bootstrapping

If you have enough money then you don’t need an investor to fund your business, you can very well fund it yourself. But opening a substance abuse center may not be as easy as it seems. Starting it up is one thing, keeping it afloat is another. You may face difficulties in keeping it afloat all by yourself without any investors. It’s all well and good if you’re sure that you have enough money, if not then you can always ask your trusted friends and family to help you out as well.

Substance Abuse Center Business Plan

To help get funding for your substance abuse center you will need a business plan. Click here to learn about our substance abuse center business plan template. 

How to Fund Your Online Casino

How to Fund Your Online Casino

Online casinos are in great demand nowadays and young entrepreneurs are jumping at chances of seizing this opportunity. You cannot possibly establish your business without the means of funding it. Those who’ve been in the business for a long time know all the tricks and tips there are, but it may be difficult for a newbie to discover all of them alone. Good investment in your business is one of the most important things for it to flourish.

How to fund your online casino

Importance of a Good Business Plan

In order to get funded, it is imperative that you have a solid and convincing business plan. Do your research properly and map out a plan that’s detailed and offers everything there is to know about your business. It will help you in estimating as to how much funds you’ll need. Your business plan will be your pitch. This is what will want to make the investors invest in your business. Also include business strategies so that the investors are convinced that your business is the real deal.

Banks

A lot of new businesses are supported by loans given out by banks. One of your safest bets could be filing for a loan in the bank. Provide them with proper details and licenses of your business. Before going to a bank, make sure that you and your business both are completely legal. Without proper licenses you won’t be able to apply for any kind of loan.

Private Investors

If for some reason you are unable to get a loan from a bank or are uncomfortable with it then there’s always the option of private investors. A lot of banks these days don’t loan out money to different businesses because of the restrictions imposed on them by the law. So in such a case, there are private investors who’d gladly invest in your online casino. So, it is crucial that you lay them a proper pitch as a simple whim or like to you or your business can get you the funds you need.

How to fund your online casino

Bootstrapping or Getting Funds from Friends and Family

Bootstrapping means funding your own business through your very own money. If you suddenly got a handsome amount of cash and want to invest it where it may bring your more profit than business is the thing for you. So if you have the money, you can very well be the investor for your own online casino. Friends and family are also a good option. They can be turned into investors with a little convincing.

Ready to get your online casino planned and funded? Check out our Online Casino Business Plan Template:  Online Casino Business Plan Template

How To Start A Salon

How To Start A Salon

The beauty business will never go away because humans are obsessed with looking good. However, while it might seem glamorous, starting a salon business is not the easiest thing in the world but with the tips that will share in this blog, it will be a lot easier.

salon business plan

Write a salon business plan

No business can work well without a business plan in place because it is the map that will give your business direction when you are starting out. The business plan should include all the details of your business and the different areas that you will be focusing on. A salon business is very dynamic so you need to have a plan in place to deal with changes that might occur in the long run.

The right location

The right location can be the difference between being successful and failing so you need to pick the right spot that has good traffic, high visibility, and is located where your target demographic shops or lives (especially women).

Excellent Customer Service

Customer service is extremely important in the salon business so you need to put modalities in place to ensure that customers are treated in the most special way possible. This is a very sensitive industry so people are more likely to patronize your services if they feel like royalty.

Website and social media

Having a website and social media accounts is extremely important so you need to ensure that you have a presence on these platforms to promote your business to new and old customers. A website and social media accounts are your most effective PR channels to reach a large number of people with no cost whatsoever.

Licensing

In the United States, all beauty workers have to be licensed so it is important to reach out to the local Division of Occupational and Professional Licensing within your vicinity to get details on this and also make sure that your salon premises are neat at all times so as to pass health inspection and the guidelines laid out by your state.

salon business plan

Offer Different Services

While you could cater to a major niche that you focus on, it is always better to offer different services so as to make your salon the one stop shop for anything beauty. So a client can work in and have their hair, nails, and face done all in one place, instead of making a stop at different spots.

If you need a business plan for your salon check ours out at Hair Salon Business Plan Template

 

How to Start a Vape/e-cigarette Store

How to Start a Vape/e-cigarette Store

The Vape/e-cigarette industry has grown very fast in the last few years and if you have any doubt about this. Then the fact that an estimated 2.2million Americans regularly used e-cigarettes in 2015 according to a survey by the Office of National Statistics data should convince you that this industry is growing.How to Start a Vape/e-cigarette Store.

vape store business plan

There are a few things that are required of a business owner who wants to set up a vape store and in this article, we will explore the different important factors within this niche.

  1. Cost:

Cost is very important because it is not cheap to get the best product and set up your store because this would also play a part in the size of your store. Big stores are usually expensive while the small ones are easier to manage. The number of customers and product that you are looking to get would play a big part in the final cost for setting up a vape store.

  1. Location: there are things to consider before deciding on the right location. Your store location should be accessible and somewhere you can draw traffic from. It could be near a grocery store, movie theatres anything that draws the attention of customers.
  2. Competition: research your own market. Know the completion you have. This is essential because even though you have a good location ensuring your customers stay and increasing your customer base is important.
  3. Carry the Best E-Cigarette and E-Liquid Brands

It is very important to stock up the best vapor brands if you want to be successful in this business. The best products are easy to promote and you don’t have to do much to draw customers in, but this might affect your profit in the long run.

Here is a sampling of some of the most popular e-cigarette and e-liquid brands that offer wholesale prices for vapor shops:

VaporFi

Halo Cigs

V2 Cigs

Apollo

Volcano

White Cloud

Virgin Vapor

Use Social Media

vape store business plan

Besides owning your own vape store, you should also consider capitalizing on social media. The vaping world has been recognized as a subculture where smokers depend on each other to quit cigarettes and help them socialize at the same time.

These are just a few tips that can help. Also never forget customers are always right but not all the time. Just ensure whatever advice you get can be of benefit to your vape store business at the end of the day.

To get your own vape store organized and increase your chances of funding check out our business plan template. Vape Store Business Plan Template

 

Benefits of having a bed and breakfast business

Benefits of having a bed and breakfast business

Bed and breakfast businesses have proven to be an affordable and convenient option for people who are spending time away from home, yet still, need or want a place like home to sleep and enjoy a homemade meal for breakfast before starting a new day.

bed and breakfast business plan

On the other side of the proverbial coin, the owners of bed and breakfast businesses derive some of their benefits from comfortable and clean accommodations and appetizing meals for their customers and prospective customers.

BENEFITS OF OWNING A BED AND BREAKFAST

  • Owning and operating a bed and breakfast business means that you are an employer. In other words, you no longer belong to the category of those who work for a salary or a wage.
  • A bed and breakfast business is a viable source of income, which you can use to support yourself and your family.
  • A bed and breakfast business enables you to meet more people, which tends to attract benefits other than revenue.
  • As an employer, you determine your salary. Provided that your business’ net profit can cover it, your remuneration has no limit. It is nevertheless advisable for you to recompense yourself with a fixed monthly salary to allow your business to operate in an effective manner.
  • You determine the pace at which you work, you set your own hours, and you can take a vacation at any practical time (for instance, it may not be ideal to take a vacation during a ‘busy’ season, such as a holiday or ‘extended weekend.’
  • You become an employer of labor through the business. This is because, at some point, you may need to employ persons to assist you with the affairs of your business.

bed and breakfast business plan

Please note that owning and operating your own business requires that you be consistent in fulfilling your responsibilities. You must be prepared to do what needs to be done (within reason) to make and keep your business successful, and you must comply with all the relevant laws and regulations which govern businesses such as your own.

If you are looking to get your bed and breakfast organized and increase your chances of funding check out our Bed and Breakfast Business Plan Template. 

How to start fashion website.

How to start fashion website.                        

Fashion is big business because humans just don’t want to put on clothes; they want to put on the right kind of clothes and with the advent of the internet. Folks now opt for the easy option of just clicking on their laptops and getting their favorite fashion outfit without any hassle.

Fashion website business plan

There is no better time to open a fashion website than now and that’s why we have compiled the top 4 things that you have to do if you want to launch a fashion website business.

Get a great domain name and your own host

The first step to owning a fashion e-commerce site is to set up a website and get a domain name and a hosting platform. You need to ensure that the name is catchy and easy to remember so fashion lovers can easily locate your website. You also need to ensure that the layout is properly done so users don’t have issues scrolling through your website just to find what they want.

Find Your Niche: there are loads of other fashion websites out there so you need to carve a niche for yourself and focus on that area. There are many areas of fashion so you just need to find one that is not too saturated or where your greatest strength lies. This would make it easier for you to grow your fashion website business faster and easier.

Stock The Best Brands: we all cannot deny the fact that people love big brands because it is more or less a status symbol. So you need to showcase the very best brands and trending outfits. This way they won’t have to move on to other competitors just because you are lacking in an area.

Publish fashion contents: publishing a fashion blog is a great way to get traction for your website because it will give you an edge in search engines and also offer a value-added service. It is also great when you build the content around the products that you have in stock.

To learn more about how to get your fashion website funded check out our business plan template:  Fashion Boutique Website Business Plan

Fashion website business plan