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Dear Friend,
One issue that has been coming up a lot lately has been
how to fund the start-up of your cart or kiosk.
How MUCH it takes to start up a holiday cart or kiosk can
vary based upon the product you are selling and the mall
you are opening at.
If you are wondering how much money it takes to get open,
you might want to check out this past update:
http://www.kioskexpert.com/cost-start-013107.htm
I usually figure it's going to take about $15K to get
started, give or take a bit depending upon the requirements
of the specific mall and product you choose.
**
When I was opening my first cart, I didn't have the $15K
my supplier said that I needed to get open. Not even half.
Once I made the decision to open, I had to come up with
rest... or there would have been no opening.
I ultimately got the money from a mixture of the following
four sources...
1) Cash on Hand
When I was first opening, I had a little less than seven
grand saved up. Just under half what I needed.
Certainly it was a start. But it was not nearly enough.
So I had to look elsewhere.
Cash you have on hand is typically the most sure source
of funds for your start-up. It can be in the form of savings,
or business reserves. Either way. As long as you've got it.
Now, if you don't have to have it all in cash, here are
some other places to look...
***
2) Credit Cards
I know some folks who routinely use credit cards to cover
the full amount of their start-up costs.
They use their cards for everything. Supplies. Inventory.
Sometimes even mall rent.
Because the return on your money can come pretty quick
during the holidays, folks often pay back what they owe,
before owing any interest!
At the time I made the decision to open my first cart, I
didn't even have a credit card. So I immediately applied
for one. And was approved. For a whopping $1000 credit
limit!
Credit's a bit easier to get these days. If you have a
solid credit history, cards can be an easy way to cover
your start-up costs.
***
3) Friends and Family
Another source of funds for many people can be money lent
to you from friends or family. A lot of us know people
that will help us out when we are starting a new venture.
For example, my 'little' brother had some money packed away
in his 401K plan that he wasn't really using. He withdrew
some money temporarily. And lent me about half what I needed.
In return, I gave him a percentage of my profits. And paid
him back in enough time for him to get the funds back in his
account without being penalized.
If you are short of the funds needed for start-up, let people
around you know what you are doing, and what you need.
Often, someone will step forward and offer to help.
***
4) Bank Loan
Credit from your local bank can be another source of funds
that is readily available in many situations.
Although traditional bank 'business' loans can be time-consuming to apply for, many banks have all sorts of creative
programs that make it much easier to borrow the funds you
might need...
Checking Account Credit Lines, Home Equity Loans, Business
Credit Lines...
For example, the bank where I opened my business checking
account had a 'business credit line' available. I applied,
and was approved. It really wasn't much different than a
credit card, except that the bank wanted me to use checks
to access the funds.
As I recall, I don't think I actually ever used the credit
line. But it was nice to have as a 'back-up' source in case
the funds were actually needed.
***
These are four traditional sources you can draw from in
order to fund the start up your cart or kiosk business:
1) Cash On Hand
2) Credit Cards
3) Friends and Family
4) Bank Loans
Now, if you are in a situation where you don't have the cash
you need on hand, you don't have credit available, and you
don't have friends or family with the funds available... you have to be a little more creative.
In my next full update, I'll share with you another way to
get access to start-up funds that IS more creative. And it's
available to just about anyone!
If you are looking for funds to get open, keep your eyes
peeled for my next full update!
***
Best,
Brady Flower
P.S. Are you thinking of opening a holiday cart or
kiosk, but don't know what's involved?
Register for my free, seven day mini e-course on
'How to Open Your Own Mall Cart or Kiosk Business.'
It'll cover some of the basic issues you need to
take into account when starting your first cart or
kiosk. You can register here:
http://www.kioskexpert.com/XmasMiniCourse.htm
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