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Thread: NEED HELP!!!

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    Question NEED HELP!!!

    My partner and I have just gotten out of Matric and we are looking at opening up a new gym in the area that we live in. The third person in our partnership owns a Hi-Q store. We heard that there were organizations like the Umsobomvu Youth Fund that help entrepreneurs with funding for their ventures. Unfortunately, the organization has been running short of funds and can only fund up to R300 000, whereas my partner and I are looking at getting a loan of up to R4 million. Banks are out of the question, of course because of their strict requirements. However, we are sure that this is a viable venture within our community. We just lack the finance. Can somebody help?

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    Moderator IanF's Avatar
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    Love the ambition, very few people will bankroll school leavers for a few million. So you must have a plan b, I would suggest going to work at another gym and get the experience. Look to work in the various areas find out how they work, what systems they use.
    Then also look to study business management so you know about all the areas of business.
    Anyway good luck and come back here and ask questions and tell us how it is going.
    Only stress when you can change the outcome!

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    BBBEE_CompSpec (24-Dec-09)

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    Platinum Member sterne.law@gmail.com's Avatar
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    Absolutely - lending money is tough, even at the best of times. No matter what or who you approach, you will require a business paln. Remember a business plan is not just a document for show, it really is your game plan. Much like your clients will be given plans to lose weight, gain weight etc,etc so a business must always have game plans taht are step by step. Your plan needs to show how you plan to get business, grow the business, compete against others etc. Every investor wants to know how long till they get their money back - thats the bottomline. As per Ian definetely get some experience, both working in a gym and business experience. That will be a key factor in lending money. It does not matter how good the horse if the jockey falls off. Also for sure dont let early setbacks stop your ambition. Maybe your first step in your plan is to get R4million but if you need to start smaller as a step towards the bigger place then so be it. Your first plan is how to get to R4million - those steps could be various. break it down into a plan. I want to get to R4mill in 5 years that means R800 000 a year. How can i do that. etc,etc
    Remember - Goals are simply dreams with timelines!!
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    BBBEE_CompSpec (24-Dec-09)

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    Email problem tonyflanigan's Avatar
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    As a stepping stone, have you guys considered a "Bootcamp"?

    info@extremebootcamp.co.za , Speak to Sharon.

    I really admire your ambition, and wish you guys everyhing of the best.
    I'm one of the T's from TnT Unleashed Web design, photography and writing services
    http://www.1pic4twenty.co.za

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    BBBEE_CompSpec (24-Dec-09)

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    Site Caretaker Dave A's Avatar
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    Years ago the saying was "The first million is the hardest"

    Still true, even if it's less of a target than it used to be.

    So you can get R300 000.00. That's a way better start than most people ever get. So how are you going to turn R300k into R4 million?
    The trouble with opportunity is it normally comes dressed up as work.

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    BBBEE_CompSpec (24-Dec-09)

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    Thank you for all the thoughtful replies that you guys have written to me. I have taken into consideration the various aspects each one of you has mentioned. I would be honored to have a face-to-face conversation with business people as yourselves so I can gain that edge of knowledge in the business world, which I am heading towards. I understand your sentiments, too. You might be skeptical, I'm sure, as to how two boys just out of school can already handle millions in this fashion. We are two ambitious young adults who have had a long time of planning and thinking. We have researched various possibilities of business ventures and we have started undertaking a few minor transactions. (Sorry to be a drag.) We are certain beyond all doubt that our idea for a gym will work based on the views stated by our target group. We estimate high revenues for the gym in our area and therefore we do not want this chance for our financial freedom to pass us by. Yes, it is possible to start with R300 000 in a smaller area outside us. We are researching the various financial resources that are possible for individuals in our position. I would be grateful for your guys assistance regarding the financial resources we can acquire. I, myself, am black and my colleague is white. We wondered if a BEE finance was possible? Thank you.

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    If you want BEE finance go see SEDA.

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    Chippie (23-Dec-09)

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    Thanks for your input, Mr Dave A. Do you perhaps have any suggestions for me? Perhaps I can get R300K somewhere easier? I am eagerly awaiting your reply.

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    BBBEE_CompSpec (24-Dec-09)

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    Moderator IanF's Avatar
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    Chippie
    Look here at UYF. They are there to help youth like you. An essential they require is a business plan.
    Last edited by IanF; 23-Dec-09 at 07:11 PM. Reason: grammar
    Only stress when you can change the outcome!

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Chippie View Post
    Perhaps I can get R300K somewhere easier?
    "Easy" is what concerns me a bit about this discussion so far. The easiest thing to do in business is to lose money. Essentially the bigger the capital outlay, the more there is to lose and hence the higher the risk.

    I've thought about this quite a bit. It's clear you're light on experience and big on an idea. What you really need is a mentor to balance the two.

    Essentially I don't know enough about where you're at to give you good advice. Mentorship and giving advice is as much (if not more) about listening first, getting a thorough understanding, and asking the right questions long before just coughing up answers.

    There are some very serious decisions you need to make, ones that are going to affect a fair chunk of your future whether you get it right or get it wrong. I'm not keen on sending you off in the wrong direction by going off half-cocked.

    About the only suggestion I could make at this point is if you get finance, go for an option where you'll also be getting management support and mentorship.
    The trouble with opportunity is it normally comes dressed up as work.

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