Small Business Loans and/or Grants

[ckr]

Whenever I need to know something or need a reference, you all just come to mind. That said, I need some pointers. Here's the scoop:

DH and I run a small business part time while also both working full time. This secondary business (swimming pool and hot tubs, servicing mostly, some sales) has been doing very well, increasing nicely each year to the point we may want to go full time.

Originally, the plan was to have DH leave his full time job (police officer) and "work" the business part-time from our home and be "househusband" the other time. This due to the nature of the actual work and the fact that I make more at my full time job than DH. However, as our business has evolved, we see that there may be a market for an actual store.

Running a store would be something I am more suited for. Add to that the fact that DH has WAY better health insurance, and we are leaning towards opening our own store.

So here's where I need your advice/recommendations/guidance:

Are there low interest loans or grants for this type of thing? Would me being the one running it make us eligible for some of the special women in business benefits? Are there any websites you would recommend for me in regards to financing this venture?

The business is definitely making money this year even above the investments back into the company we've made (truck/trailer/power vacs/display spas, etc.) so I'm not so concerned about opening the store and it being able to support itself (even with the added overhead). But to give up my salary in order to run it has me nervous. The original plan (with DH quitting and working the business -- no store) had us living off of my salary and letting the business support itself. That would be do-able now if it wasn't for the health insurance issue. But to try and live off of DH's salary (remember -- cop with emphasis on SERVING and protecting ) with me running the store is far from being a reality. While I THINK the store could make enough to be able to pay me a salary (due to the increased visibility for service and more retail sales), I'm not SURE that it would -- at least not the first year or two. Could a loan or grant include a salary for me?

This is somewhat of a dream, with neither of us ever owning our own business, so I'm sure there are many things in it that you experts could point out. That's why I'm asking. Any and all feedback would be greatly appreciated!! Just be kind, ok?

Thanks!!
ckr

 

[dizneegirl]

My best advice, go here: Small Business Administration

Find your nearest branch of the SBA, and go for a visit. Also, if you have a nearby university, call them about help with a small business. Your local chamber of commerce may have some helpful information as well.

I'd also advise incorporating the business ($500 or so, if you do it yourself, or through an online service, up to $1000 or more through a lawyer). It protects you and your assets. A chapter "S" corporation will give you many of the same benefits of being a sole proprieter, while giving you the protection of a corporation. You might also look into an LLC.

If you want something to read, I'd start with the Small Business Kit for Dummies. It's got some good information, and comes with a CD full of documents that might come in handy.

As far as being a minority(woman)-owned business, yes it can help. If you incorporate, be sure you are the majority shareholder (even 51-49), and the owner. It certainly can't hurt. You may even be able to find grants specifically for women-owned businesses.

You might also check out Inc. magazine at your local library... they have a lot of good information (you can also visit them online: Inc. Online ). They've run articles in the past about finding financing, loans, angels, etc.

 

[ckr]

Any one else have any suggestions?