Home – New Forums Starting your journey How to get start-up capital when you are kinda broke

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    Hello everyone!

    So my husband has this brilliant idea of running a Bourbon Bar with American style food in Perth and while the idea is sound I’m concerned that no bank or investor is going to give us a loan/seed money because we are essentially broke and have no experience in the industry. We are living on the bare bones of our arses as a family of 4 and we have only 2 assests; 2 fully paid off cars. We rent, we owe $4k to my parents, we have no savings, but apart from that we have no debt. I’ve done a credit check on both of us and even after my husband got a $30k tax debt in his 20’s our credit rating is positive. While that is good, we really only have about $50 spare at the end of the week after paying all the things (rent, food, loan repayment to parents, health insurance, etc).

    I’ve read every single book in my local library about business (no really, I have) and when they talk about getting start-up capital they assume that you have an asset you can borrow the business loan against, namely your house or investments. The books that say you don’t need much to start a business assume you are running an work-from-home online business where all you need is a website and an email address or that you can borrow money from family and friends. After the GFC I don’t see how lending from family and friends who are equally struggling to make ends meet is really a good idea. There’s no book that tells me how to get a loan/seed money when you are middle class poor.

    So in short, I’m concerned that my husband is never going to get a loan/seed money because they’ll take one look at our finances and his lack of experience and run the other way. Any advice on how you can start a business when you are kinda broke?

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