If you have been looking into starting your own local theater, you have your work cut out for you. I am in no way trying to discourage you however, but it is an uphill road, especially in this day and age.
You might think that the hardest part of starting your troupe is going to be the business plan, but you would be wrong.
Sure, the planning will be difficult, especially if you have never started a business before, but there is something more difficult. You will need to come up with money. Lots and lots of money.
It takes time to get a business up and running and time is money. You need money to pay rent, pay for stage construction, advertising and the performers themselves. Figure out how much money that you need to run your troupe and then multiply that by 6. This is the minimum amount of cash that you need to have on hand. Sound like a lot? It is.
Starting With A Loan
If you are lucky, you can raise your startup costs with donations and you will be successful quickly. If you are not lucky, you may need to take out a loan. This is where you need to be careful. A loan can either make you successful or it can bring you down and sap all of your profits.
A Theater Loan With Poor Credit
If you have bad credit, you need to be very careful. There are a lot of online loan websites such as Paid Day Loans Online that can help you get an offer, but be careful.
If you have poor credit, you may be able to secure a loan with a manageable interest rate. If your credit is bad however, the interest rate could effectively go into the hundred percent or more range.
When you get a loan offer at one of these websites, you need to make sure that you read all of the details so that you do not accept a bad deal.
A Theater Loan With Good Credit
If you have good credit, you will be in a much better position. You will be able to go the more traditional rout for the money that you need. Ideally, you would get an SBA loan with your local bank but they can be difficult.
If the SBA loan route does not work, you can consider taking your good credit online to one of the money online loan websites. One such loan website is Credible and it allows you to get an offer online.
Even though websites like Credible are far more mainstream. still use caution. Watch out for high interest rates and fees such as origination costs.
A Big Decision
Getting a loan to start your troupe is obviously a big deal, but it is something that you should think about.
If you have a rock solid business plan and can secure one for a decent rate, it might just be the key to your success. An even worse thing than getting a loan would be to have to close your doors due to lack of funds.
Above all else, secure your funding before you start your journey. Good luck.