New business. Funding ideas?
I'm genuinely curious on what people with no business background or history do to get funded?
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I am in Ontario and I am not sure if this applies to you, but I just made sure my personal credit was great before I decided to head to the bank and apply for a small business loan. I did this as a sole proprietor, as that was my plan all along. I was approved for $25,000 ($10,000 credit card, $15,000 line of credit) in a matter of days. I planned, searched for tools, made my logo, built a business plan, etc. while I built myself up to go into the bank like a big boy and ask for money! I did all the things that cost little or no money before I started buying things I needed for the business.
I must say I must have been on to something with all the planning beforehand because I have never touched the line of credit and credit card is paid off immediately.
I had built my credit up and did the same thing. But all they did was deny me due to me not having a business history or income... honestly makes no sense. I had a good score at 750+ and the hard pull dropped it down to 699. Now I'm a bind and don't trust anyone to pull my score. I worked hard to get that score now I'm set back 3 months trying to build it back up just from a check... This is Michigan where I am at. Also working with the Michigan small business association.. Honestly have been no help.
That really sucks. I don't know enough about the US banking system to help you. I can say to do one thing, start small. Take smaller jobs that require less material and ask for a deposit from your clients. Buy you material that you need, put it on a personal credit card and pay it off right away. It may be a slow burn for you but if you keep at it only good things can come. Watch every penny you make and work your butt off.
I really hope it turns around for you and can't wait to hear updates from you about your success.
Real talk? Most people starting with zero business background don’t actually get ‘funded’ by investors. That’s more of a tech startup thing.
What actually happens is people usually bootstrap it — they use credit cards, dip into savings, do a few jobs for family and friends, then roll that money into the next job. Some take out a small personal loan or borrow from family.
The truth is, nobody’s handing out business loans to someone with no experience or revenue. You gotta prove it works first by doing it small, then scale up with your own profits.
That’s how most of us actually got started.
I've been hearing and learning that you have to wait until a certain time for your business to have been established then you can apply for loans and grants, and I guess depending on what type of business it is to apply for as many contracts as possible.
I was able to obtain loan approval with no time in business by presenting a solid business plan for a slightly different niche in an established industry and a high credit score. What area of business are you starting?
I'm starting a mobile laser cleaning business
If you could show the bank a proof of concept and general interest in the service, it may help move them from the no time in business stance.
I've leisurely done interior decor as an added service to my cleaning business but have decided to try to try interior decor/ design only since it's true to my heart and for me it's fun, not work. I didn't notice interior design listed in the home services. Why? It is absolutely a home service. So, when I applied for the grant, I checked "other" and manually texted interior design. So do you think im eligible for the grant or should I have chosen maintenance or contract instead?
