Micro-loans, venture capital, etc.
- Started
- Last post
- 11 Responses
- gramme
Are there any business owners here who have experience with this sort of thing? Would you recommend it for a small design firm?
So far, I've been running on my own steam (no borrowing). But I'm looking to hire a new business person, and need cash in hand rather than promises of future glory. I'm at a point where I have too much work to really find time to develop new business; but neither can I afford to give any of the work away. In other words, I have a job, rather than a business, and want to change that ASAP.
- whereRI0
hmmm id be really interested in peoples experiences here too, where you based gramme?
- VikingKingEleven0
No.....unless you have client contracts.
What you can do is apply for a small business loan.
- tesmith0
We had a "small business" loan from the government that allowed us to buy equipment, etc. Couldn't have done without it.
- SOCIALISM! ;)DrBombay
- Did you read the fine print on the loan?VikingKingEleven
- It was paid off last year so I'm not worriedtesmith
- breadlegz0
we've had business loans in the past when we wanted to expand. I would be very careful with venture capital as they will obvioulsy want a chunk of your business ...
- moniker0
Ask Dinky.
He's rolling hard in gold these days.
- JSK0
If you can't afford to hire someone, you shouldn't hire someone.
venture cap would be hard with out a product that you can leverage if your service business slows down
crowd funding is another alternative
look at Kickstarter.com
- gramme0
I've got all the equipment I need to operate for the time being. I've been working from home for almost two years, so my overhead is minimal. I've got a bread/butter client that brings in consistent (retainer) income. But it's so much work I don't have time to look for new clients, manage the current workflow, and have a life all at the same time.
Basically, I've maxed out on what one person can reasonably accomplish, I need to diversify (too much business flowing in one direction), but I can't afford to scale back, and reaching out to new prospects takes time.
If I was still single I might just buckle down and work 24/7 till I have enough work to bring in more than occasional freelance support. But as a father and husband, that's not a responsible or sustainable option.
- tesmith0
Sounds like you need a business partner who brings clients and a complimentary skill set. In most situations you would hire a commissioned sales rep but might be a stretch for a design firm of one?
- gramme0
Exactly, tesmith. That's the only reason I'm even thinking about exploring small loan options. I wouldn't want to hire someone and tell them I'll pay only for leads that turn into paying clients.
What I could see happening is getting enough of a loan to hire a strong new business manager on a freelance basis for three months. Let's say they work 20 hours/wk for me. At the end of that time, if they're bringing in significantly more income for the studio, then we'd determine next steps. Eventually it would be great to have a full-time senior-level business dev. person, maybe even at a partner level.
- honestIy0
i'll go into business with you. our first job together will be to rob a bank, we'll split it 50/50 and work on investments from there. i propose a french inspired robbery that involves either tunneling or hiding until after hours. we can flip a coin for "inside man" responsibilities
- gramme0
BTW for any new business, I'd have to raise my rates. But that wouldn't be a huge deal; I'd still be charging significantly less than some of the other shops in town (no huge office or sizeable staff to consider).