Bankruptcy and Business Idea Loan

Empty train (explored)
photo credit: mescon

A reader asked:

I have researched a business idea and have got an outlined plan for a totally new business with no competition at all and with a tons of potential. However, to go forward I need full financial backing up to $200,000. I filed for bankruptcy last year. What do you think my chances of finding a investor or partner would be – and where would I go to find one?

Truthfully, your problem isn’t that you filed for bankruptcy. It’s that your idea has no competition. No valid business is without competition. To an investor that reeks of, at worst, incomplete preparation on your part or at best, no demand. Either way, there’s little chance for your business to go forward with an outside investor.

I recommend that you go back and rethink your idea and figure out a way to implement an ancillary business for very little money. This will allow you to get a better idea of the demand for your original business. After you’ve provided a service or sold a product for a while, you’ll have a better idea what will and won’t sell. Plus, you’ll be that much farther from your bankruptcy.

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