i was reading the post about opening a bakery and question about loans.......Well, I noticed that some women were told that they had to have 3 years of business under their belt. Im kind of confused though because here in Texas I can't think about selling cakes without being licenced and to do that I have to work in a commercial kitchen. In other words I would most likely have to get a loan to get a commercial kitchen. Churches and places like that aren't commercial. So, how do i get 3 years of business under my belt legally?? Im doing everything right now free.

Although the permit for non-profit organizations can be different from a retail kitchen churches are still serving food to the public (even though they are members) and they are still required to have a liscenced kitchen.

It is very hard to get a start up loan for any business...you could either save the money or apply for a line of credit through your bank (personal loan), use a high limit credit card or the equity in your house. You don't have to get a "business" loan per say. American Express offers cards with low interest rates and no credit limit. There are ways to go about it...you just have to be creative!

It's just part of the laughable irony. Can't get a loan to start a business until you can show you've been in business for 3 years.

Do you ever drive past those hole-in-the-wall businesses that look like they are falling apart and think "Oh come on! I KNOW I'm smarter than they are so how did THEY get a biz loan to get started?"

Just keep smiling and keep movin' forward!

I was wondering how to go about getting a loan for a business. I didn't think it would be hard. There are people who are not US citizens that get government loans?

Seriously, first step is to develop a Business Plan. I worked on mine for 9 months, along with my CPA and an organization I hired that specializes in helping put Biz Plan together. It ended up being over 40 pages. If you plan to try for any SBA or grant monies, you will have to have one of these.

you know whats crazy too, is that there is only one professional cake company here in my city that I could find (when i was looking for my wedding cake). You would think that the banks would be more open to lending the money if they could see that there is a need for that type of business here. Its a very large city with many customers to go around and they are all having to go to Dallas to get business. Im sure to the one company here they are lovin it but they need some competition!hehehhee

Katy- Where in Texas are you? I think for any type loan, they like to know that you have had at least 3 years in the field you are wanting to get into. It would be very difficult for one to get into a business that is not familiar with the ups and downs. Either way, you will need the business plan for a loan with a bank, sba, economic development or where ever you go. The only other thing is finding an investor, and I am afraid that they will want to know what kind of return they will make on their money. You might be able to find a small building for rent that has a kitchen already and start up on a shoe string, but I would not recommend that, it is tough not having any capital to work with.