Small Business Start Up Loan Horror Stories

If you are considering a small business start up loan to finance your dream of owning your own business, proceed with caution! You may be putting your personal assets at risk. It's wiser to consider financing your start up business with free sources of business start up funding. Most small business loans are secured on your home or other high value assets that you own. Such was the case with a business owner named Jim. Just listen to his story.

True Life Horror Story

Jim wanted to open a 24 hour fitness club in suburban Atlanta. After conducting thorough market research, he discovered that a fitness club in his community had great potential to turn a profit in as little as two years. Jim decided to attend a paid business plan workshop at a local university.

After completing the course, he held in his hands one of the most impressive, money winning business plans you could ask for. This plan was sure to have the bank's loan officer salivating. Jim was approved for a small business start up loan with no problem. After all, he was unmarried, employed full time and owned two properties. His high credit rating, savings account balance and experience in the field as an award winning body-builder, made him a "shoe in" for loan approval.

Seven months after Jim's grand opening, he got word that a mega fitness center franchise was opening a location right down the road from his gym. This new fitness center boasted of an Olympic sized swimming pool, fitness classes, child care and a staff of buffed and bronzed personal trainers. What’s even worse? The monthly membership fee was far less than what Jim's fitness gym charged!

I can tell you that Jim spent many sleepless nights worrying about the future of his business, and the mountain of debt that he was sitting on.

How Does the Story End?

Jim has had to lower his monthly membership fees to compete with the new fitness franchise, sacrificing the profitability numbers from his business plan. He also had to increase his advertising budget and offer members greater incentives for joining – another blow to the profitability numbers. Jim is still keeping his head above water. He decided to hire a start up business efficiency expert to help him lower his operating costs.

Don't allow what happened to Jim happen to you. Do thorough research on any small business start up loan package you are considering. Also, consider how to avoid taking out a loan altogether, by investigating free sources of start up business financing.

The Start Up Business Survival Guide is an excellent resource for anyone wanting to start a business with little or no money. You can make your dreams of owning your own business without bank loans a reality - even if you have little or no money. I'm living proof!

About the Author:

Kimberly Kelly teaches new entrepreneurs the secrets for finding free sources of business start up funding through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at http://www.StartUpBusinessSurvivalGuide.com