Small Business Financing Stories

All businesses struggle to find capital - be it for their start-up or their growing business. But, if you believe in what you are doing and know that hard work now can only lead to success, you too can find a way to finance your company. See how these businesses did it:

Q: What did you do for start-up capital and the pros and cons of this strategy from your prospective?

A: We totally bootstrapped with about a $1,000 investment. We definitely lived within our limited means for a while too.

But doing our own thing...which was and is major for us....

We mainly put as much as we could back into the business and grew that way....

We used our own money, very little, under $1,000....

We had a year or so with another income....

We had a huge turnover (inventory turnover)....and put the money right back in....

We are in antiques and had to learn fast....

We always needed money so that was good...we just marked up a little and that was good... if we had had a huge loan it probably would have slowed us down....

We already had a truck and a barn on the farm...needing to turn over the things fast was a blessing, since it made us value and focus on a few great repeat customers, and kept us from being greedy on our prices...that made us able to learn faster....

I don't think we could have used more money too well....we had such good buyers that we hardly ever ran out of money.....

Q: How did you finance your business over its first couple of years (was it different from your start-up and how so) and the pros and cons of this strategy from your prospective?

A: About 3 or 4 years in was when we bought a $40,000 pile (antiques) and had to get family help to pay...

But we paid it back in a month...we had a very desirable product and waiting buyers for anything in their category...

We had huge turnover at the start....and very little overhead...just our living expenses..... and no credit, not even cards....

Q: What are you doing now regarding financing your business and the pros and cons of this strategy from your prospective?

A: We have 4 trucks, 4 full time workers, lots and lots of overhead....

Financing now is thru a big credit line...that we try not to use....and credit cards....

We built a new building and have that loan....

I would guess we would be able to get more money from the bank but hope we don't have to...some parts of the year we are close to debt free except the building loan....

We have real good credit history...I think we grew organically...in response to the customers...

Q: What are your future financing plans for growth?

A: We are in year 32....

We had no employees until about yr 6 or 7....

We are a partnership...me and (partner).... with him (partner) doing the bills payroll and mechanical and financials and working at the store too......me buying selling, designing and display and marketing and working in the store.....

We try to stay out of each others area ...but give good feedback to each other...

I would like to reach a million a year....but this dang economy isn't helping...we aren't growing now like the first 30 yrs!!! ha ha...but we are not falling back either...

I'm not interested in partnerships, or franchises, I think about a second store but can't figure out the staffing....I wouldn't worry about the investment if I had the staff...

Q: Your results?

A: We sell over $800,000 a year... (much better than the early years).when we sold $25,000 a year ....

We have a good income for my husband and I for the last 25 yrs...enough to have a new car and a big house and a lake cottage....with no other income.... and also a full time income for my son with 4 kids.... And I think we have a pretty good reputation....our store is big.10,000 sq ft...and we have many long term customers...

Next Story: Frederick Pearce - Pearman Cooperation Alliance

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