Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 0 down vote favorite
1

I have a warehouse space in an industrially zoned district. I am using it to put on all-ages shows. I do not have enough money to afford the $2350 application fee for a mandatory conditional use permit which is required by the city in addition to the $150 business license upon approval of my (CUP). Unfortunately during one of my shows a cop showed up and forced me to shut it down. I still have 3 out of the 4 already paid months left in my lease. I dont have much money left in my savings but I am in a bind on whether I should put money out for this. Another obstacle is that the CUP takes 6-8 weeks to review and the $2350 is nonrefundable.

-I put out $4000 for 4 months -I made $1100 in 2 weeks having shows -I need ~$2600 for permits and licenses

I cant afford to lose anymore of my savings but I think I have a niche here. I need some advice.

share|improve this question
My space is located in Garden Grove, California. – Tyler Oct 20 '10 at 7:31
Something that isn't clear for making your decision is expectations of future cash flow. Is this $1,100 in 2 weeks the right measure for the future? So every week you will make $550, every show, was it growing in the 2 weeks, etc.. So I suggest model out your expectued future cash flows then look at what Zuly suggested. – John Bogrand Oct 20 '10 at 19:21
Next time you will learn to take a look at zoning laws before leasing a property. In business we all live and learn – Frank Oct 22 '10 at 23:03

2 Answers

up vote 0 down vote

I think you answered your own question, "I need a conditional use permit or else my place will be shut down." The authorities have found you and will probably show up at every new event you host.

You planned this business and knew you needed a permit. Either get the permit, or have you shows shut down.

share|improve this answer
up vote 2 down vote

There is no way around it. You have to get that permit. If you truly believe in your business, you have to take a leap of faith. The question is, how can you get the money to get that permit. I can think of a couple of ways:

  1. Get a small loan from your bank
  2. Borrow the money from friends and family

Friends and family is probably the easiest route and it would be my first choice. You don't have to get the entire sum from one person, split it up among several friends and family to lessen the load on each person. Check out What are some considerations you should make when borrowing money from friends and family to seed a startup?. Also see this question for more funding ideas.

As for it taking 6-8 weeks to get your permit, look into whether your state has an additional fee for expediting it. In Maryland for instance, it takes about that long to register your business. But for an extra $50, you can expedite it and have your business registered in a matter of hours.

share|improve this answer
1  
Agree 100% with Zuly. Get some seed money from somewhere. Ideally, you don't want to go to an investor for such a small amount of money. Not sure where you are, but here in Toronto a sub $5000 loan would be dead easy to get - especially if you got someone to co-sign for a pre-agreed kick-back following the loan's repayment. EDIT: Don't go to a loan shark!!! Failing a bank loan, there are some financial specialists that can help you get a loan from a B-list lender (legitimate business, but usually higher percentages for higher-risk borrowers) – patrickgamer Oct 20 '10 at 19:05

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.