Help getting funds

[Opieo]

Hello everyone.
A friend and I talked about opening up our own business 5 years ago when we were in high school.
Now that I am out of college (he is working on his Masters, I needed a break from school), we want to start it.
The problem is that we cannot get the money to start up.
Having just gone through college we are a little lacking in funds and assets.
We would like to get most of the money as a loan, and we already have 25% of what's needed in case.
He more so wants it as a loan in case something goes wrong, but I feel perfect confidence that we will succeed.
We have everything planned out, and if anything else is missing, I will be shocked.
Our desired business is a Cyber Cafe.
Our town doesn't have that much in it, and I believe having an upbeat friendly place for kids to go as an alternative to doing bad things is great.
Also, the population is enough that it is feasible to to have it stay open and make money on it.
Even if I never became rich off of this, I would not care, I would be doing something I 100% love for the rest of my life, and that to me means more than money.
The problem is that we just do not have enough money / collateral to the bank to get the loan.
We need to find at least 30K$$.
The Small Business Association basically told us we were on our own and so did most grant places because we will be considered an entertainment institution.
Can anyone please point to somewhere where we can get grants or funds for a small starting out business?
Additional information:
It is in Michigan about halfway between Detroit and Flint.

We are really very very keen on opening this up.
I currently have a job but it has already been worked out that I could handle the business and still keep my current job intact. The same for him.
This is my dream and I really do not want to put it on hold simply because we are young and do not have a lot of money yet.
We are trying to get a business credit card as well and start bringing in some sort of revenue somehow so that we can start building business credit.

~
Give a man some fire, he will be warm for a day, Set a man on fire, he will be warm for the rest of his life.

 

[franklin97355]

Get a second job, put all your money in the bank and start building equity toward the business. You will probably have to put your life on hold while you get the funds to start your business but in the long run you will have what you want. By the way tell your friend that even if it is a loan you still have to pay it back.

The answer is "42"

 

[Opieo]

I do not understand why he is so concerned about the loan.
We have to provide collateral on anything we borrow anyways.
And I am still insanely sure we will succeed at least to stay open, even if not to make a lot of money and open another store later.
So, if for some unforeseen event happens, and we do fail.
What is the point whether we provided the money or borrowed,
because if we do, the bank will just take whatever we provided as collateral. Just that in the case we are providing the cash, we don't have to pay interest on it.

~
Give a man some fire, he will be warm for a day, Set a man on fire, he will be warm for the rest of his life.

 

[johnwm]

There is always a problem for tech startups getting a loan - because you need to get a loan from a businessman and not a techie. They have all these boring requirements for business loans because they know that tech ideas on their own don't work. They will be looking for a credible business plan backed up with business management expertise, either in-house or hired in. If you don't have that level of planning and expertise in place, then follow franklin97355's advice and save your pennies up.

Venture capital is readily available in most countries, providing you are able to convince a businessman that YOU are a business man, and will make a proper business out of the exercise and not just a dreamer with wonderful plans. So get your business hat on, and get cracking - the world is full of real opportunities.

All the best with your project!

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[dgillz]

Even if I never became rich off of this, I would not care, I would be doing something I 100% love for the rest of my life, and that to me means more than money.

Make darn sure your business partner feels the same way.

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[aarenot]

One suggestion, try finding a similiar businees model nearby, get a part time job within it. Demonstrate your ability to impact this business, manage it, grow it. Then approach the capital partners, and investigate a joint venture with them with shared ownership. You may be able to buy them out at a specific point down the road, and meantime you gain experience in a like venture. That would get you past more bean counters who hold the purse strings on loaning you venture capital.