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[dave1985]

Hi I am 18 yrs old and i am wondering how would i start a night club in albuquerque NM, which one would do very well, if i dont have much established credit to get a loan/ grant to properly fund it? I know that it is very difficult to get a loan from a bank but what about SBA? what are the requirements. If anyone has any tips to give please let me know because I am very anxious to get this started. I have also been looking for a good location and I think i have found one. thank you!

dave

[grachuss]

Get job working in the industry first. I'm 21 and have been working for clubs since I was your age, and I find there is still alot I have yet to learn.

To answer your question about financing though, you would have to get private investors if you dont go to a bank. As far as the SBA goes I think they only give you a percentage of the $$$ you need, I could be wrong on that one though.

[Rylan]

Well, what SBA does is they guarantee your loan.
like if you need $200,000 and you have say $50,000 to $100,000 the SBA will (upon approval) guarantee up to %75 of the amount of your loan for the remaining amount you need to make the $200k.

so say the SBA will guarantee $150,000, what that means is you will get some sort of letter from the SBA saying they will back your loan of up to $150,000 for up to %75 in the event you fail to pay back your loan. this minimizes the risk to lenders and makes it much easier to get your startup capitol.

my problem right now is finding investors to get together enough capitol to take a proposal to a lender..

[wygk]

banks will require a proven background in the industry, collateral, and an detailed and credible business and financial plan. The SBA can make it a little easier to get a bank loan, possibly at a better rate, by guaranteeing part of the loan amount. But they will require all the same things as the SBA.

As others have said, you probably need more hands-on industry experience. You should also find some good community college courses in small business finance and administration, if you hope to get SBA/bank financing.

In the mean time, the only option you may have is the infamous "friends and family" financing. But yoou're probably far better off if you spend a few years acquiring the knowledge and experience you will need to get financing... because these are also the skills you will need to build a successful business.

[Rylan]

yeah, i would tend to agree on not just jumping into it. especially at 18, i dont think there's any way you're going to get a liquor license till you're 21 anyway and without it you can only sell food beverages admission and merchandise which probably sounds like more than it will really turn out being.
the good proffit margin is on the alcohol, depending on how nice your atmosphere is you can charge a whole lot more for your drinks than you're paying for them.

[advancemellc]

most nightclubs I help fund working capital is netween $20,000 up to $50,000. You do have to be open so this does not help getting working capital upfront to OPEN a place up but helps in business plans and capital once your open....there is never enough money as I have learned in this bz.-