Need Small Business Start Up Loan? Why The Do-It-Yourself Approach Beats The Pants Off Of All Others

Talk about raising a small business start up loan and what usually comes to mind? Banks, brokers, loan companies, insurance companies and organizations of all types that make their money by lending you money.

But, there are many people in this country with a little extra money that they would like to put to work for themselves. They would like to make more interest on their money than the bank offers by providing you a small business start up loan. You can reach these people for only a few dollars.

Every issue of The Wall Street Journal, The New York Times, and the major newspapers in every big city across the country carries special columns on its classified pages.

Some are headed “Business Opportunities,” others, “Capital Available,” and others “Capital to Invest.” There is literally a wealth of information and money to be found every day in these columns. And, you can find the start up capital you need for your small business here.

The point here is this: for a few dollars, you can often reach thousands of businessmen with your offering in a simple classified ad. Let me demonstrate this by telling you how an old client of mine, Joe, used it successfully.

Joe wanted to expand a mail-order toy business he was running. He needed capital, but didn’t want to be tied down with a bank loan. He wanted some more flexibility, knowing that his business was highly seasonal. He ran a 17-word ad in a local newspaper, seeking $10,000, and received 12 replies.

Of these, three actually offered the money, and he borrowed $5,000 each from two of them. He later found out that one of his lenders was a retired department store merchandising expert, and was able to give him a million dollars worth of free advice as well as the cash he needed. You can apply the same technique to acquire your small business start up loan.

Here are some sample ads you might try:

  • Will pay_____% interest for $18,500. Well-secured and financial sound investment. Contact __________________ ยท
  • OPPORTUNITY to invest in newly start up small business. Need $12,000 loan and will pay up to _____% interest for six months. Contact _________________
  • PARTNER and money needed. Just $5,000 and 10 hours a week will give you 25% of my going fast-food business. Contact __________________
  • Make 50% profit for an investment of only $10,000. Going hardware store needs capital to expand. I made this profit when I started the store, you can too. Contact ___________________

When writing these tiny ads, particularly for a small business start up loan, remember this…

“What’s in it for them… the potential lenders/investors?” Make sure you offer them twice or even three or four times what banks are offering in your area to make it worth their time and money.

Where do you place these ads? You may try your local newspaper first, but don’t be afraid to advertise in papers all across the country. People with money to loan to small businesses are not particularly interested in where they lend it, they just want to know if they will make money on it.

As you can see it is possible and often quite easy to pick up a check for your small business start up loan by simply walking to your mailbox.