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help raising capital with no equity?

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Old 30-06-12
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Default help raising capital with no equity?

I'm desperately trying to grow my fitness business but am having trouble raising capital to take the next step. I have approached the banks but got knocked back due to no equity (i dont own/am paying off a home), have personal debt of $30,000, little in the way of assets and have no family/friends I can contact. There also appears to be no grants in my field (though I am still investigating)

I have a solid business plan and good track record of growth, just need an injection for us to take a leap forward! Any ideas?


Last edited by SteveFoulds; 01-07-12 at 08:47 AM. Reason: *added grants info
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Old 01-07-12
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Default Re: help raising capital with no equity?

Hi Steve,
I don't have a suggestion on getting cash in your circumstances, sorry...
I don't know anything about your situation or what you need the cash injection for, but maybe there is more opportunity in breaking down what you would spend the cash on, and then working out alternatives?
For example:
Advertising - first you could look at opportunities to set up a referral system to generate more leads.
Equipment - perhaps you could lease instead of buy, or negotiate a deal with another trainer or a gym to use their equipment for a smaller fee.

Another idea (again without knowing your circumstances) would be to network with other trainers and form your own co-op. There would be other trainers in your position who would benefit from working together to purchase equipment/supplies cheaper, or to contribute towards advertising and promotional costs - especially if you don't directly compete.

That's just my two cents...

Good luck!

Gavin

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Old 01-07-12
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Default Re: help raising capital with no equity?

Hi Steve, I actually just replied to your other post re grants... Even if an actual money grant is not available for your type of business or needs, via business.gov.au you can access a heap of other resources for your business, including advisors for different things... perhaps using some of those resources, whilst doesn't provide an immediate cash injection might give you some advice and 'tools' to raise the capital you're after?

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Old 01-07-12
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Default Re: help raising capital with no equity?

Thanks, ill check it out!!

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Old 05-07-12
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Default Re: help raising capital with no equity?

What do you need the money for?

Have you tried approaching your current clients to see if they are interested in investing in your business?

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Old 09-07-12
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Default Re: help raising capital with no equity?

If your business has a good track record of 1yr preferably 2 plus then getting money from the banks is easy (as long as it is not too much you are after) you are either going to the wrong bank or putting the proposal together wrong.

If you are in Vic or NSW is can assist but even in other states I am happy to give you some guidance cheers

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Old 14-07-12
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Default Re: help raising capital with no equity?

Seems a pickle I see often.

You can try angel investors, but right now the big hype is 'Anytime Fitness' from the US and they are growing disturbingly fast, your alternative with growth reports is trying and goto a financial institution to raise the funds, or an area (where most people don't relise this) to try and raise funds from businesses in your industry, there may be a supplement shop looking to start up a gym but don't have the funds for it, but they may be able to inject. Lateral thinking is needed here.

And be clear in what your offering, if your company is worth $100k, don't tell investors that a 10% share will cost them $300k, for 10% its only worth $10k. Make sure your keep this clear on bringing investors on board and which direction you take it upon them, investors are very surgical with start-ups.

I can actually help with funding in most areas, but depending on how much is another, we don't usually invest/inject finance anything below $800k.

We can get the funding, if everything is approved but it comes down to interest rates, it may be 17% or even bank matched, but its cheaper then giving 50% away to an investor?

Banks are very reluctant on financing off a business plan, they want the security, best type of banks to try are actually Westpac and ANZ only though.

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Old 18-07-12
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Default Re: help raising capital with no equity?

Wow. Thanks for your help team!

Our main aim is to expand our services to offer in-home training, this will involve buying portable equipment.

From there we're looking to start on off-shoot that specialises in non-general population clients, so we need bond + more equipment etc...

I'll be in touch with you guys real soon!

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