I'm making the Jump

[Boldt]

Morning all,
I have a question for those who took the leap and started their own store, where is a good place to get funding?
I'm setting my goal for 18 months to two years out. I've got my labs lind up, lines picked out for the most part. I'm starting to look at the demographics I want to cater to and parts of town that would best suit that. I know I'll have to include this in a business proposal, but I was wondering if there are specialty lenders for optical or is the SBA going to be my best resource for finding funding? (I am doing a kick starter to help, but not counting on it.)
And help and advice is more than welcome and as always Thank you all in advance!
Boldt

[Uncle Fester]

Get the a subscription! Short short money!!!

Then get on the private site.

You should also use the search feature as there are others before you who've had this same request.

[Boldt]

D'oh point.
Got ya thanks I'll look.

[rbaker]

The best source of funding is your own pocketbook. You obviously have a shortfall in this area otherwise you wouldn't be asking.

Next thought is to "borrow" the necessary capitol from family which is pretty much a guarantee to cause much future animosity and alienation. Then, I guess you can look for a sugar daddy or other individual investor who will, of course, demand a controlling interest in your business (placing you right back where you started, working for someone else.)

And of course, good old Vito Capenzo might make you an offer that is too good to refuse but you might be well advised to refuse.

You can also consider begging for funds on some of the web sites dedicated to pie in the sky, get rich quick schemes or make up a sign and stem for coins on street corners around town.

And finally as a last resort you might do what most successful business does and go to a bank. They will require an accurate and comprehensive business plan and make you jump through hoops and fill out endless paperwork and go through you past tax returns with a fine tooth comb. You see, the pricks want you to repay the cash that they loan you in the agreed upon manner. If they feel that you are a clunker then they will turn down the loan application, thereby doing you a very large favour. If the pony up the money you will have the knowledge that some professional business people have faith in you and your plans.

Lotsa luck !

[Chris Ryser]

Morning all,
I have a question for those who took the leap and started their own store, where is a good place to get funding?
I'm setting my goal for 18 months to two years out. I've got my labs lind up, lines picked out for the most part. I'm starting to look at the demographics I want to cater to and parts of town that would best suit that. I know I'll have to include this in a business proposal, but I was wondering if there are specialty lenders for optical or is the SBA going to be my best resource for finding funding? (I am doing a kick starter to help, but not counting on it.)
And help and advice is more than welcome and as always Thank you all in advance!
Boldt

First of all before you are looking for financing make valid business plan that lists all the goodies and the not so goodies
Come up with a lot of figures, like cost and expenses, or nobody will be interested to finance such a venture.


10 Steps to Starting a Business


Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business. Click on the links to learn more.


Step 1: Write a Business Plan

Use these tools and resources to create a business plan. This written guide will help you map out how you will start and run your business successfully.


Step 2: Get Business Assistance and Training

Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business.


Step 3: Choose a Business Location

Get advice on how to select a customer-friendly location and comply with zoning laws.



See all of it =======> https://www.sba.gov/content/follow-t...rting-business



I also found another interesting site to calculate the cost of a startup :


Startup Cost Calculator


Check it out =======> http://retail.about.com/library/bl_s...7821b-0-ab_msb

[optilady1]

I don't have any actual advice but I will say good luck! I wish I was as brave as you!

[iD]

I don't have any financial advice but I can give you the obvious advice. Location is going to be a big part in starting a new business. You would want somewhere with a lot of foot traffic. Maybe somewhere in your city where there's a lot of tourists/other businesses.

P.S. Shark Tank.

[rbaker]

I just remembered the most important consideration; business licenses and permits. This is from California but I am sure your State has similar roadblocks to your dream.

California Licenses, Permits and Registration
1) Tax Registration
Employer Identification Number (EIN): All employers who have employees, including business partnerships and corporations, must be assigned an Employer Identification Number (EIN) or Employer Tax ID from the United States Internal Revenue Service, sometimes referred to as a Form SS-4.
U.S. Internal Revenue ServicePhone: 1-800-829-4933

• Guide to the Employer Identification Number
• Apply Online

California Tax Registration: Those businesses operating within the state of California are additionally required to register for more specific identification numbers, licenses or permits for different tax purposes. Examples of these include income tax withholding, sellers’ permits for sales and use tax, and unemployment insurance tax. Contact the California Tax Service Center for more specific information regarding business owner tax obligations and registration procedures.
2) Business Licenses
General Business Licenses: The CalGold database provides business-specific information regarding permit, license and registration requirements through an extensive collection of links links and contact information.
3) Local Permits
The local government in your area, such as that of your city or county, may require specific permits and licenses. Each municipality may have its own unique regulations. Here are some of the most common licenses and permits you may need.

• Alarm Permit
• Building Permit
• Business License and/or Tax Permit
• Health Permit
• Occupational Permit
• Signage Permit
• Zoning Permit

4) Incorporation Filing
Businesses which operate as corporations, limited liability companies (LLC), a partnership (either limited or limited liability) or who are a non-profit organization need to register with the state. Forms and applications can be found here:

• Business Entity Registration – Forms and Applications

Businesses which claim sole proprietorship do not need to register with the state. However, in California, sole proprietors wishing to do business under a name which is different from the proprietor’s legal name will have to file a DBA (see Step 5 below).
5) Doing Business As (DBA)
Filing for a fictitious name allows the creation of a business name which is then separate from your legal name. This is called Doing Business As, or DBA. Sole proprietors wishing to do business under a business or company name which is different from the proprietor’s legal name will have to file a fictitious name with their county registrar at the county clerk’s office. Partnerships, corporations, or LLCs may also choose to file a DBA.
6) Employer Requirements
There are several registration requirements for businesses which have employees:

• Withholding Income Taxes: The IRS requires that records of employment taxes be kept for at least four years. An overview of employer responsibilities regarding the withholding of federal taxes is provided in the IRS Employer’s Tax Guide publication.
  
  • Federal Income Tax Withholding (Form W-4): All employees must fill out an exemption certificate for their employer (Form W-4) either on or before their start date of employment. The employer is then responsible for submitting the W-4 to the IRS for verification.
  • Federal Wage and Tax Statement (Form W-2): Employers must report annually to the IRS the wage and tax information which has been withheld for all employees. This report is filed using Form W-2, Wage and Tax Statement. A W-2 must be completed for each employee by January 31 each year. Copy A of the W-2 Form must be sent to the Social Security Administration (SSA) to report employee wages for the preceding year. Additional Employer W-2 Filing Instructions and Information are provided by the Social Security Administration.
  • State Taxes: The requirement of state tax withholding varies depending on where employees are located. Visit your state tax agency for further information. California businesses are required to register with the Employment Development Department (EDD) in order to file reports and pay taxes.
  
  
• Employee Eligibility Verification (I-9 Form): Federal law requires that employers verify work eligibility in all employees hired after November 6, 1986. Proof of eligibility to work in the United States must be completed within three days of hire by completing the Employment Eligibility Verification Form, commonly referred to as an I-9 form. Form I-9 must be completed for both citizens and non-citizens.
  
  • Instructions for Completing the I-9: Handbook for Employers
  • Download Form I-9 (Employment Eligibility Verification)
  
  
• New Hire Reporting: Employers are required to declare all newly and re-hired employees within 20 days of hiring. This information should be submitted via the State of California New Hire Reporting Program.
• Insurance Requirements: The State of California requires businesses to carry certain kinds of insurance. The Employment Development Department (EDD) administers California’s Unemployment Insurance and State Disability Insurance (including Paid Family Leave), as well as payroll and income tax withholding.
  
  • Disability Insurance: Temporary disability insurance benefits provide payment to workers, if needed, due to a non-work related illness or injury. Employers are responsible for deducting this tax from employee wages and reporting taxes to the state. More information regarding various kinds of disability insurance can be found at the State Disability Insurance web page.
  • Unemployment Insurance Tax: Businesses are required to pay unemployment benefits to eligible employees. More information regarding unemployment benefits can be located on the Unemployment page of the State of California Employment Development Department.
  • Workers’ Compensation Insurance: A Worker’s Compensation claim can be filed by employees who are injured on job. The California Department of Industrial Relations provides a list of frequently asked questions regarding Workers’ Compensation coverage for employers.

Sorry to urinate in your Koolaid.

[Craig]

Call Johns!
No bank will loan you money to open a store without mucho assets already.
I have had to self-finance all my expansions and bother my family.

[Johns]

Over breakfast this morning, my son, who will soon be leaving for his first year of college asked me, "What is the best advice your father ever gave you?" It didn't take me long to answer, as my father repeats this advice often, "Save your money."

It's not rocket science, and it doesn't take a Ph.D in economics. Save your money, and make your purchases carefully. I started collecting displays, equipment, etc. for my first office 3 years before I actually opened. I had to park my cars outside of the garage, as the garage was my "staging area" for the "launch" of my office. I had the displays arranged in my garage, just as I would eventually set them up in my future office.

Where did I buy my first displays from? An optical that had secured major funding and purchased everything new. The optical couldn't make the payments on the loan, and the bank held a liquidation auction. I still use the same displays (have refinished them twice) 27 years later, in our main office.

If I have to borrow money to expand, then it's not time to expand. The first loan I took out for the business was a morgtage when I purchased the building we were in. I paid it off in 7 years, and used the rent I no longer had to pay, to begin purchasing the other buildings my offices are located in. Of the 4 buildings we now own, 3 of them were purchased using seller financing, so again, we were able to avoid taking loans out.

Proverbs 22:"The rich rule over the poor, and the borrower is slave to the lender."

[Johns]

If you are serious about taking the leap, I think that one of the most important things you can do is to work on relationships with ODs/MDs who can work with you, preferably (the only way I would do it) in your office. Without an rx source, you're dead before you begin. The "I know a lot of people" or "I've got an awesome following..." won't cut it.

[CNG]

Get all your equipment used. Start now. Do not invest in extremely fancy lines. Less known ones sell as well. Buy used displays or even accept donated ones. Eye centers usually renovate and many times give them away. Practice full scope as per your state. Getting a source of rx is very important. Advertise heavily into eyeglasses repair.
If I did not have omd in my store I would be begging to get the teleophthalmology technology in. That is probably as important as the store.


Cng

[Boldt]

Johns would you suggest renting a lane out or having one and inviting Doctors in to use it?
I would like to rent it out a few lanes, but I'm not sure if that is the best way to start. lol I feel Like I'm putting the cart first there.
I've been looking for used equipment.I've also thought about building it my self from scratch then I have exactly what I want.
Thank you for the advice every one, I'm taking notes as we speak!

[rbaker]

I know of a few opticians who started out with peg boards and golf tees fifty years ago and they are still around although they now have some very high end displays and fixtures. I have a friend who lived in the back of his first optical shop with his wife and three kids for the first two years of his career. You don't have to start out by emulating the fancy boutique down in the mall with the all latest bells and whistles to succeed.

The most important asset that you must have is balls. In addition you have the brains, skill and work ethic to work your balls off for peanuts for a year or so. If you go belly up, do you have the balls to pick yourself up and start over again. In short, do you have the fire in your belly to be a true entrepreneur?

[Johns]

Johns would you suggest renting a lane out or having one and inviting Doctors in to use it?
I would like to rent it out a few lanes, but I'm not sure if that is the best way to start. lol I feel Like I'm putting the cart first there.
I've been looking for used equipment.I've also thought about building it my self from scratch then I have exactly what I want.
Thank you for the advice every one, I'm taking notes as we speak!

See post #12. A decent used lane can be purchased for under $6k.

[David_Garza]

I don't have any actual advice but I will say good luck! I wish I was as brave as you!

You could totally do this with your knowledge! Plus optician in WA can fit CLs. I know some seasoned optician who own their own shops in WA for decades now. They would be more than happy to show you the ropes!

[tmorse]

"Save your money." Good advice to anyone contemplating going into business.

Nobody but family will finance a new start-up without you having some serious skin in the game. How much $$$ have you saved up so far? All the knowledge in the world is worth just so much, and old equipment won't impress a banker.

So what is your credit score? What are total credit limits on your credit cards, and what are the individual balances.

[Boldt]

Johns thank you as always for the advice. In your experience should I get an edger at first? I know edging costs at a lab can nickle and dime you to death. :^)
Rbaker: I ready for it and have plans if I fail the first time, I cant wait.
Tmorse: I'm working on that, I was young and stupid at one point lol. Working with a bank to consolidate and have it auto draft so no missed payments.
Optilady: I'm scared out of my mind, but I got tired of other people throwing crumbs at me for the bread I make them. Look into it and if it looks good dive in. :^)

[tmorse]

Good luck to you!!

But do remember the definition of an entrepeneur... Someone who works 80-hours per week for himself so that he/she doesn't have to work 40-hours per week for someone else.

[Boldt]

80?! I'm expecting 90+!
Besides once I can afford employees I'll be working for their benefits, and plan to give back to the local community. lol I'll get some Sundays off...unless I open

:^D

[Johns]

Johns thank you as always for the advice. In your experience should I get an edger at first? I know edging costs at a lab can nickle and dime you to death. :^)

I wouldn't immediately. Use your funds to make your place/selection look great, and get folks in the door. Once you know they'll be coming in the door steadily, then make the move for an edger.