Is it crazy to start a new business with * and cronies in office?

[Willy Lee]

We are in the process of indebting ourselves big time to open up a new business.

I have been over in GD reading about the new bankruptcy laws moving through congress- are we crazy to be going into debt right now?

Will S-corp or LLC status protect us?

One bank wants us to go through the SBA while the other wants to just write us a check as a personal loan. As I understand it, a personal loan would basically leave our home susceptible to creditors is the business fails.

Help??!!

[2Design]

1. home is subseceptible under everything except maybe INC

Notice the biggest bankruptcies have been major corporations - they are INC = enron - all the big wigs kept their homes and their luxuries while the every day person lost

can you start a business without loan or less or little to start -

banks are in the business of making money - they do not care about you - they are driving these bankruptcy laws

the credit card companies over the last 5 -10 years have sent out these arbirtation notices in all their mailings - they will get you either way
either by not allowing the ordinary person the right of jury and trial or due process and instead rush it to arbitration - if they don't get you there - they will get you another way

s-corp and llc still filter back to you - you are still effectively a sole proprietor

[F.Gordon]

2. If you're already planning for your "business failure"

Then maybe you should wait, or not start the business at all.

We are a C-Corp, but on some obligations we have to waive the personal exemption.

If you're sincere about this, then use the SBA. The followup paperwork is tedious but it can be helpful in monitoring your business. I also recommend a full corp status. Again, the accounting and paperwork is tedious but it forces you to be regimented. (ON edit: A C-Corp affords you the best protection for your personal assets. You should also have a good business liability policy if something happens and the sharks attack. But, being a startup ((assuming you're a startup)) you'll most likely have to give up some personal asset protection.)

All that said.... all the best to you if you proceed. I'm assuming that you've prepared a real Business Plan. You've looked at your market, competitors, etc, etc, etc.... all that "stuff"?

[Willy Lee]

3. Thanks for the input, F. Gordon.

Yes, a "real" business plan has been prepared (is there any other kind?). Complete with pro formas (best, worst, and expected out to 5 years), profit and loss statements, cash flow analyses, and break even analyses. And of course market comparisons, competitive analysis, and every reason why we will be a huge success. ;-)

I am planning for my business success, not failure. With all of the talk about bankruptcy legislation I became nervous. But after looking realistically at our situation I realize that we'll weather the storm without going down that road. Worst case scenario (not setting myself up for failure but being realistic) we do fail, I can always go back to work to pay off debts. We are only looking at a 50k loan.

One of the banks we have submitted our BP to is submitting it to the SBA for the loan (tomorrow). This bank, which is a local, home-town variety, has historicall been very pro-small business. However in the past year an extreme right-wing developer has become president and seems to fund all of his own projects with little regard for others. This guy builds subdivisions (among other things) with street names like Reagan Heights, Gingrich Drive, and Bush Plaza. No shit. Other local small businesses are fleeing in droves. We took the plan to a second bank as a security measure; they say that with our credit score they could write us a loan outright.

Am I nervous about this huge step away from my benefits-included-salaried job at University? Hell yes. But I am completely excited about taking this huge plunge into the world of fresh roasted coffee, rustic bread and artisan pastries.

[F.Gordon]

4. Sounds like you got your shit together

Yes, there are "fake" Business Plans. ;-) Back when I wore a suit and tie I saw a few.

Reagan Heights, Gingrich Drive, and Bush Plaza???? Am I reading your post correctly? A Bank Prez is a developer? Correction... extreme right wing developer. Reagan Heights, Gingrich Drive, and Bush Plaza???? This has "conflict of interest" written all over it. I'd love to know what connections he has to city and/or county reps. He has to be connected to pull this kind of shit off. Another time...

Sorry if I sounded harsh with the "failing" bit. I've seen so many small businesses go under round' these parts over the last few years. I've seen failure used as an unconscious goal that dismisses the ability to correct problems.....that can be fixed. And we NEED more small business in this country. We don't need Bank Presidents / Land Barons / "who knows what else" controlling our local communities and economies.

Let me know if you ever do mail order. I have a weakness for breads and pastries. :9

[Willy Lee]

5. I kid you not-

Found the original article from our paper, published about 2 years ago. Sorry, my names were a little off, but you get the picture!

On the business note- thanks for the reply. Sounding harsh can be a good thing- it makes us take a look at our motives and justifications for doing something.
Will keep you updated about our progress. Don't know about shipping, shelf-life of pastries is pretty short!

Cheers-
WL


Street names to salute patriots

George Bush Boulevard. Eisenhower Boulevard. Garfield Court. Reagan Drive.

Those are a few of the street names proposed for The Homes at Liberty Place, a new subdivision being built in Jarvis Township, near Troy. The subdivision is one of the newest projects by R. P. Development. It will have a distinctly patriotic theme, and each of the 13 street names will reflect that theme, said Robert L. Plummer, president of R. P. Lumber Co. in Edwardsville.


"Finding street names is harder to do than people think because so many of them are used up," Plummer said Monday morning from his office at (redacted). "Even presidential names are used up. So we wanted some names that showed some American history."

Most have a presidential or military connection. Along with the presidential names is one for former Republican presidential candidate Barry Goldwater (Goldwater Circle), and two are named for former U.S. generals Omar Bradley (Bradley Court) and Douglas MacArthur (McArthur Drive, spelled McArthur in the preliminary plat). Gen. George S. Patton also has a street named for him (Patton Drive), as does former U.S. Army Chief of Staff George C. Marshall (Marshall Drive).

Added to the mix are Rush Limbaugh (Limbaugh Drive) and Secretary of Defense Donald Rumsfeld (Rumsfeld Drive).

[F.Gordon]

6. What? No "Hannity Circle" or "Coulter Way"?

Incredible. :eyes:

Realism is important. There are businesses that can't accept the fact that they are truly failing and continue on. And there is nothing wrong with having an "exit strategy".

Our first goal many moons ago was to build our business up to be "fire proof". Meaning that any decision to sell/close our business would be our own and wouldn't be dictated by outside influences. We accomplished that goal. And we do have an "exit strategy".

Can't ship? Bummer. Well, if I ever make it out to your part of the world....