Guys, i need some help. i'm thinking of opening a home theater store here in RI. I have a meeting w/the bank this tuesday to see if i will be able to get a loan. i was hoping one of you smart buisness types would be able to help me w/questions to ask or what specific info i should have before i go in there. any help would be much appreciated.

Do you have a business proposal drafted for the bank or a business plan? Without it your going to start off on the wrong foot with the bank.

If you have ample collateral you can get past some of it but it makes things a lot easier when you can explain in detail what you want to do and what your going to do to get there.

As for questions to ask, I doubt you will ask to many. It will be the bank doing all the asking.

I worked with a friend to open a cell phone store, however, this was in Canada and rules are different. I have also ran my own business before but I had no store front.

what questions do you have exactly?

by the way, the previous poster is right. The first thing you need is a business plan. Outline what you want to do, your estimated costs, your potential pitfalls, how you intend to market yourself, etc. We were lucky enough to be working with an MBA student, however, if you don't have such luck, there are plenty of outlines of a business plan you can find online that can suit your needs.

Let me add to that:
I wouldn't go in there without good documentation of what the service will be, who else is doing it in the area, charts showing the rise in number of people buying/building/installing home theaters (to show that it's a growing business and therefore a growing need for people to offer the service) and maybe, what you think you can do better/different if applicable.

The bank wants to feel confident that the business will be successful; they don't want to be chasing someone down for loan repayments 6 months after going out of business.

There are a TON of good books out there, though I imagine much of the info is on the net as well these days as opposed to when I started. Check the SBA (Small Business Administration) website... right across the top are menu pages for starting a biz, financing a biz, etc....

I have to say, though, it's a tiny bit backwards to say "I have an appt. with a banker, what do I do?" as opposed to gathering all the info, then setting up the appointmentt! I'm not looking to rain on a parade, but might it make sense to maybe bump the appointment back a week to go in prepared? If this is a bank that you have high hopes for, that's what I'd do. You might end up visiting quite a few when all's said and done, and if this is not one of the "top most likely" banks, prepare as best you can, be friendly and ask the loan officer what info HE/SHE looks for. If you don't have it all, offer to come back with more, but also take note to have that info for your next appointment.

Where in RI?

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any help would be much appreciated

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DONT recruit sales staff from BestBuy!!

bigjohn

Guy's thanks for the replies, much appreciated. i have some of the info that you guy's mentioned but i didn't have it organized as well as you guys did. now i will put it together and should have a better presentation. I am an amature when it comes to buisness so forgive my ignorance.

Where could i get info re: the number of people buying/installing home theaters/HT equipment. I know the nearest competator, based on equpment i intend to sell, is 34.5 miles away (map quest) from me.
I made the appointment w/the bank because i didn't know where else to start, i know that may be backwards but like i said, i don't have any expearience.

Mark, I'm in Johnston RI. i was planning on putting the buisness in cranston/warwick or perhaps smithfield.

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I made the appointment w/the bank because i didn't know where else to start, i know that may be backwards but like i said, i don't have any expearience.

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At the very worst, set up an appointment with a bank you have no interest in dealing with. They'll put you over the coals and give you an inkling of what the bank you do want to deal with will want to know.

Personally, when I started up 9 years ago, I started jumping through hoops for one bank after another, attending BusinessStart meetings and I finally got fed up with the banks - the definition of a banker: "A person who lends you his umbrella, and takes it back the moment it starts raining." A ton of questions read to me by someone who didn't understand my field of expertise and wanted a detailed itinerary of what I expected to do from that moment until retirement.

Finally I flipped the bank loan idea off (I have a serious issue with owing anyone money anyway), worked my kiester off, sacked away every spare dollar, borrowed some of my start-up capital off my grandparents and once they were paid back, it was mine. and I did it myyyyy waaaaay.

Bren R.