Hello everyone! This is my first forum post on cake central and I am very excited to get advice from other who know about baking! I went to Johnson and Wales Universiry for Baking and Pastry, and have my associates degree from there. I do some cake decorating business on the side to family and friends, but I am very serious and very passionate about starting up my own bakery. I have so many great unique ideas that I have not seen anywhere, and I have a very sound business plan. However, I am young so my credit is not substantial enough to get a loan for startup on my own and I dont know anyone with investment money. I have already scoped out a place, priced equipment etc, but I need an investor, loans grants or something to get me started. Does anyone have any advice on where to look for startup money???? Please help, I will use any advice other business owners can give!!! Thanks

I'm sorry, I don't have any information - but I will say WELCOME

There is a WEALTH of information here, and even more talent... I'm sure you'll get the info you're looking for!

*watching this topic, because I'm interested too!

A barrier that I (and some other CC'ers) ran into was the fact that we are in the food industry. According to more than one bank, the SBA views it as "You have to be in (the food) business 3 years before we will give you money to start a business." Yeah, we know ..... it's crazy.

If your city has an Enterprise Zone, there can be financial aid available for a place within the zone, however we ruled that idea out as Enterprise Zones are usually in the "low rent district", which means clients would not feel safe coming to your shop in the evening hours (and sometimes, not even in the daytime!).

You might consider shopping for kitchen space to rent rather than creating a whole shop at first. Unfortunately, we've chosen an industry that has specific equipment requirements and building requirements (special floor coverings; special wall coverings; special ways the plumbing has to be installed; etc) that are very costly.

Can you get a co-signer for a Small Business Loan? Would they let you get one without a co-signer? I understand that they give preference to anyone who's not a white male.
Do you have collateral for a loan?
Would you consider a partner?
These are just some thoughts. I hope you get lots of good ideas!

Yea I already found a space that is for lease. My mom and I are actually wanting to do this together, but my parents dont have like superhigh credit so thats not really going to help. I am wanting to do this for the least amount of money I can to just get started because I know that the business will become successful! I just an investor or someone to give me a chance but Im a young female so its not exactly easy!

It would be a good idea to get in touch with SCORE http://www.score.org
and they can give you real-life advice.

Do you mind me asking where you are located? I just had a business meeting yesterday on opening a dessert shop. I'm near Cedar Falls Iowa, Northern Iowa University (UNI), and they have a UNI Regional Business Center. It was a free one on one meeting. The guy I dealt with was WONDERFUL, and VERY VERY helpful. He also gave me a business plan to work on, and a lot of things to think over. Try to google John Pappajohn, and see if there is anything in your area. This is a great resource. If I can think of any others, I'll let you know. I know I have a thread out there I need to update this information to. Good luck, and keep thinking big!!

Have you talked to anyone in the loan department of the bank? You don't need good credit necessarily- just assets. And you can use any equipment you might but with the loan (ovens, mixers, etc) as collateral...at a reduced value, but still every bit helps!

I also recommend contacting SCORE and also your local SBA for help.

I don't think you want to hear this, but have you thought of working at a great restaurant as a pastry chef or baker? This way, you'll see how a kitchen works in a real, not controlled environment like school. And, you could find yourself a mentor who'll guide you through your career. Not forever, but for a few years. And take a business or accounting class. I live in a small town where small businesses are here today, and gone tomorrow. Educate yourself about the "business aspect" of the business. You've got the skills to put out the product, now you need the skills to manage the overhead and day-to-day drama and trials and errors.
Getting a loan is tough; I keep hearing how easy it is, but I have yet to experience it. But, I think the process weeds out those who can't follow through with something, which is a trait definitely needed in a business.
Kudos on having a good business plan! I know many folks who have not even done that (thus the "here today, gone tomorrow").
Good luck!!!!
P.S. I recommend SCORE.org also. Very informative. And your local Chamber of Commerce. Get yourself immersed in the business community.

karensjustdessert-score.com
great starting point. That actually is another name for the regional business center I went to yesterday.
jenk910, I hope you find what you're looking for. score.com should be able to help point you in a great direction.

I have actually been a pastry chef for about a year at a local bakery, and believe me I know the day to day operations of a bakery, not just school! MY parents actually owned a restaurant several years ago and I have been in the food industry since I was 12! My dad is a business man, and he is actually going to run the accounting and business management part of the bakery, and my mom and I will be running the baking aspect, or so thats our plan. Thanks for all the great links and tips, everything will help!

Good to know you've got a solid background, and a great support system.
You're going to do well!

Score works hand in hand with SBA...and you can't get anything from the SBA unless you've been in business for 3 years...

and food has a high margin of failure.

Can I ask which campus you gradutated from? I"m an alumni

I live in Ga and they have an agency call W.E.D.A. (Women's Economic Development Agency). They offer tons of workshops, most of them free or for a small fee, on how to get a loan to start your own business, marketing, business taxes, etc.. I am not sure where are you located but this is their website, http://www.weda-atlanta.org, you can call them and ask if they know of a similar agency near your town.

American Express....you can get them with no credit limit or a very high one. Don't apply for the business one, just the regular American Express. If you have no credit what's so ever and need to build some first you can get a card through a department store, buy something and pay it off in 3 installments to get a history generated. After about 6 months of good paying history you should be able to get an American Express. JMO.