SHOW MUSIC STORES THE MONEY!

Funding a music business record store comes with familiar start-up challenges.  The types of financing available for a music store are generally identical as those for other business.  Several of the options for generating monies for a business venture involve getting loans from a bank.  Asset-backed or equity loans require a guarantee of some form of collateral (i.e. equipment, property, etc.); however, since equipment used for operating the business could be jeopardized in the event of defaulting the loan, then, an asset-backed loan may be risky.  If sharing ownership or administrative control with investors is an option, then, venture capitalist or business angels may be another funding option. A split of the profits from the business revenues, as well as, managerial or operational support for the business is what venture capitalist will exchange for financing. The SBA or Small Business Administration of the U.S. Government offers several grants and loans for qualifying business owners.  Although grants awarded by the SBA do not have to be rapid, a loan must be repaid on a time schedule and with a predetermined interest amount. A few innovative approaches towards getting funding for a record store could be explored outside of traditional loans. If there are supporters from among relatives and peers, then, another alternative for financing may be borrowing money from family and friends.  If securing a loan from banks, venture capitalist or friends and family is not a preferred route, then, offering supporters of independent record stores a chance for ownership is another option.  Patrons or enthusiast of music stores may be willing to jump at the chance to invest in a genuine interest. Ultimately, if it’s a bank loan, venture capitalists, loans from personal supporters, or community investors, a time will come when realizing the vision of a music store will mean asking someone to show you the start-up money.
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REFERENCES:

1)   How to Open A record Store; http://www.ehow.com/how_4465183_open-record-store.html?ref=Track2&utm_source=ask; Lynda Moultry Belcher.

2)   Record Shop: How To Get Your Own Record Shop on Track; http://www.startups.co.uk/record-shop.html