On Target...Maybe

I met with my contractor this morning, and he said that his superintendent says it will be difficult - but not necessarily impossible to open by Super Bowl weekend (Thursday, January 31). I told him I'll be in the store while work is being done as long as they can use me for something. The Super Bowl will be huge for me, if I can get open on time. It's always nice to have some fanfare surround a new business' opening and, somehow, I don't think early February is much cause for excitement for anyone in Central Illinois. So as far as I'm concerned, it's Super Bowl or Bust!


Some other good news is starting to trickle through, as well. My lighting guy Kevin called yesterday and said he found a set of gooseneck lamps that will work for illuminating the awning that will overhang my store. Total savings: roughly $500 (every little bit helps).

I also got my first fencing quote (for a dumpster enclosure and to mask my outdoor cooler unit): $2300. I am still under the impression that the Town of Normal will be reimbursing half of this expense as part of my ongoing facade improvements; even though the dumpster and cooler are in back of the store, that whole area is eminently visible from an Amtrak pulling into the nearby station and - slightly farther away - from Linden Street.

Somehow in my doomsday post the other day, I neglected to mention that the Small Business Administration (SBA) - reputed champion of the nascent entrepreneur - is claiming $4,500 as its fee for taking part in my loan; this comes to 2.25% of the total loan valuation. I read through the literature in an effort to help convince myself that going the SBA route was a wise choice.

So is it worth it? Here's what the SBA does for me:

- It allows me a longer term during which to repay the loan - in my case seven years.
- I am able to make interest-only payments for the first year of operation, which will help maintain the health of my cash position until I really get rolling.
- The SBA also limits the bank's exposure to default (my inability to repay) - at least as I understand it - which makes the bank more willing to loan me the money.

Unfortunately, the SBA's involvement does nothing to improve the interest rate I'll be paying (9.00%). This just motivates me to pay off the loan as quickly as is reasonably possible (in other words, don't repay the loan and then find that you don't have enough cash on hand to keep the ovens on). All in all, though, I have a loan in place awaiting official release of the funds, which is all that a guy walking into a lending institution hat in hand with a big idea can hope for.

So, now that I have a loan close to ready and a target opening date - however optimistic - agreed upon with my contractor - what do I have to do today to start working toward the dream scenario of having everything ready to go seven weeks from today? I have to finalize my menu, track down my landlord to sign the final bank papers, and hound my insurance agents to bring me some quotes from which to choose so I can get my business owner policy in place and gain access to my loan funds. Subsequent to all that, I need to have my equipment quotes firmed up and ready to order by the middle of next week. All easier said than done, of course.

Heading home for the weekend for our traditional belated Hanukkah celebration. It'll be nice to eat endless free leftovers and take my mind off of calzones for a few days. Work is firmly scheduled to begin on Monday in the store, and I'll update on the progress from there.