Getting start up capital

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pulpwoody

Well-known member
So, me and a partner are taking the plunge and starting our own little company. I've done some reading on small business loans, but I wanted to get yall's opinion and what route you took to fund your dreams. I'm a member of a credit union, so that might be a good option, and possibly wells fargo, but what methods have worked for you folks.
thanks
 
3+ years now, with no loans or debt of any kind (well, about $10k on credit cards, but that's less than many private individuals!). And none of us founders come from any sort of money, either.

The thing is, unless you've prepared a very detailed business plan and/or have hit on something really unique about what you're trying to do, you're going to have a really hard time getting a bank to loan you start-up capital in this economy. Most banks actually want to see a bare minimum of 2 years in business before they'll consider you, with good lines of credit behind both the business and the owners.
 
You may be able to get some more advice if you post this in the business subforum. Best of luck! Also, check out Taormina's and Prodigi's threads in the User Films section. They both talk about getting funding for their films. Prodigi has even uploaded his business plan for all to see.
 
With prices on cameras and NLEs today, there is no need to get into debt.
Freelance and buy gear as ya go. As ya buy gewar charge more when ya use it.

I found an overhead to feel much like having a boss
..which defeated the point, at least for me.
I now buy what I need or rent what I need and I work out of the house.
ahhhhhhhh... much better.
 
Businesses establish Lines of Credit. It's vital. Get the biggest limit possible and then be a tight-wad. Credit Unions are often very good places. Your bankers will be an ally because they'll make sure you really have a business plan, accurate research, a targeted market and a team assembled that can get the job done. They want to get their money back and then some.

Most compnaies, large & small and even major corporations raise capital through a few means: they sell something, products & services to customers or a piece of the pie (shares) to investors, & they borrow: from banks (loans) & people & institutions (bonds). You can also solicit friends & family for charity, or seek grants from the wealthy.
 
business plan

business plan

If you can't make a business plan for what your doing you should expect to fail. You must have a very detailed business plan if you want success. A business plan is a vision everything else is just dreaming.
 
It doesn't cost THAT much to start a production company. For us the lawyer expenses were the largest chunk of change, forming an S-corporation in California, and we financed the company's insurance so we pay a manageable amount per month. I wouldn't start a company without having some of your own money, though. My business partner and I each had plenty of money to fund the company entirely out of pocket, and I bought the equipment, which I rent to the company on a shoot-by-shoot basis. The company has a pretty limited line of credit, but our personal lines of credit are much more substantial so we can borrow against that if necessary but it wouldn't be.
 
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