I have got a question.

[wxcrazytwo]

I am trying to get my business going re: cafe shop. I have several customers under my belt and they love my products. I know my business and its competitors and all that. I am close to finising my MBA, but I think I need outside input on this. How do I go about getting my business up and running with a storefront? Should I look for investors or do it alone with a big package bank loan?


THOUGHTS ALWAYS WELCOMED..

[CajunMama]

Do you want to have to answer to other people or just to yourself? I would suggest trying to start up with a bank loan first...if that doesn't work out then approach some investors. My shop used to be located next to a coffee shop. The young man who owned it had just gotten his MBA. This was back in 1992 and his shop is still going strong. He's located near the university here and a small business district so he gets a wide variety of customers. Research your location well. Look for other businesses that are closing that you may be able to get some of their equipment. Good luck!

[wxcrazytwo]

You know what Cajun, I did not even think of buying someone elses equipment like that. Hmm, have done a S.W.A.T. anaylysis in my area and in general a 1-2 mile radius and there seems to be little or no competition. I would like to go to the bank, but I want to approach them clientle in my bag and a solid I&E Statement

[Skywatch_NC]

The VERY best on your venture, Alex!

Eric

[wxcrazytwo]

The VERY best on your venture, Alex!

Eric

Thanks Eric, It has been a journey in and of itself. Things are looking good.

[MomH]

No MBA, no business classes, just 45 years of observational knowledge here.

1. Location, location, location. Maybe there aren't any similar businesses in your 1-2 mile radius for a reason. Is the locale demographically the type which will support your venture (e.g. coffee house near college, sandwich shop near many business or offices, etc.)

2. Offer something no one else in the area does (e.g -the world's best peanut butter pie, unusual or changing menu of sandwiches, desserts, etc,
take out service, entertainment, something only you provide.)

3. Your biggest expence in the first three months should be for advertizing costs. People I have known who started small businesses skimped on this area and really never got the word out. They also went bust.
Also, forget TV ads and limit radio to "broadcasting from" shows. The new businesses I notice most are those who put separte fliers in our local papers and on cars in the parking lots nearby. These fliers should include your "grab them" point and some of the menu items, their prices, and/or the extra services you provide. Discount coupons help bring new people in. Don't bother with Yellow Page ads until you have been in business a year. Small ads in newspapers get ignored -- full page ones do not.

4. Choose a business name that reflects the basis of your business. Peppermint Patty's sounds like a sweet shop. It wasn't. It was a beautiful litte shop that sold decorating/decorator items. Busted.

OK - enough of an old ladies advice.
Good luck, work hard, and don't give up on a dream.
MomH

[Persepone]

Go and find the SCORE organization in your area and talk to them.

These retired executives have done this stuff and they will give you straight answers and won't pull their punches.

They also will have lots of information about SBA loans and other stuff that you may not have considered.

[therock1811]

1. Location, location, location. Maybe there aren't any similar businesses in your 1-2 mile radius for a reason. Is the locale demographically the type which will support your venture (e.g. coffee house near college, sandwich shop near many business or offices, etc.)

That right there is on the money. 2 of my uncles and my stepdad had a CD shop in 2001 and 2002...and it was next to my current school (Northern KY University). However, very few college students even came in...because many don't have a steady income that they can afford to really blow $50 a month. Therefore, be sure you can get a lot of business wherever you locate. Perhaps downtown areas of cities.

I'm only using this as an example, but Florence is booming these days...with so many new stores opening. We only have one place that could even be considered a cafe, on our Main Street.

Cincinnati's downtown, meanwhile, is starting to make a slow recovery from riots there a few years back. Business has been down for some time there because of that, but it's headed up IMO and really soon I think we will see that area booming with expected renovations to what is called Fountain Square here.