$100k for startup
After I save up 100k, I want to leave the industry. I only have rudimentary programming skills so a tech start up without a developer won't work. I really want to start a something like a smoothie shop, but think it'll be too much. What viable startup ideas are there with $100k capital?
There's money in the banana stand.
Seriously...the hard part of a startup isn't getting 100K. It's having an idea worth your 100K, and your time.
Given that I just went through this decision process, you need to save up more than just your initial investment into the company. You also need to make sure that you have enough set aside for living expenses plus emergency funds over the next couple of years, depending on your company's time to market.
I feel you on the desire to do something non-tech / non-internet based. I'm also working on something non-tech in my off-hours. My feelings are essentially, try and find something you can work on while you have a day job and live frugally so you can save cash and put cash into your venture. That way, you can feel secure and work towards making your business viable without serious risk.
You worked your ass off to get into Finance so that you could open a smoothie shop?
At least do it in Puerto Rico. The booties are rounder
Think of an idea first. One that you truly enjoy and see yourself putting your heart into. Everything will be easier after that.
Small store, food service or retail may suffice with 100k-add a couple grand here and there with family and friends(living costs and legal BS).
Ever think about using other peoples money? Thats the real American dream.
crowd funding
How much equity capital / credit score / solid business plan do you need to incorporate a lot of leverage into the mix? I've heard apartment complex developers / owners are highly leveraged up to 75% of the initial investment and can see IRR's in the 30-40% range year-over-year due to the leverage and tax savings on interest expense.
Like OP, I would like to eventually own my own business of some kind after saving anywhere from $100-500k. Would be even better if I could go it in a non-US country with a lower cost of living and really make those greenbacks work for me.
If you want to open a smoothie shop or something in that range...
Just get an SBA loan. You dont need to put up all your cash for it. 10% down for the loan and you are good to go. Anyone can get an SBA loan. Its a joke. Your 'business plan' and 'projections' is a 1 page of bullshit with some more bullshit numbers in a 3 year projection template that you take a swing at. As long as you are showing 'realistic' numbers in your projections, have the down payment, and ok credit you will be good to go with an SBA.
Only down side of an SBA loan - they will take out 1st or 2nds on basically everything you own in order to get enough collateral to cover themselves. Oh and its a bit more expensive with fees (you can roll that into the loan) and higher interest rates (WSJ Prime + 1) then a traditional loan.
Traditional financing for say Real Estate is around a 40 - 60% down payment. Around 80% of banks are not lending on commercial right now, but if the commercial property is leased with a decent tenant then you can get a loan on it with the 40-60% down. Interest rates run 4-6%.
Multi family properties you can get interest rates as low as 3.5% right now. Banks are eating those up w/ 40% down.
You can also get an SBA loan for real estate, but only if you occupy at least 51% of the building. SBA wont do loans on real estate for investing.
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