Start up capital needed please read and respond!

[momillions]

Hey everyone,

I will respond to anyone that responds in a positive way and I appreciate you taking the time to read this post :)

In VERY brief...

My name is Mo and I am looking for start up capital for maximum $7 million...

The business I have planned will remain un published for the short term (genuine inquires will be shown a business plan with extensive costs/labour and projected revenue etc etc)... This is not a new service but a proven system that has been used for decades abroad and has only really been used very moderately in Australia...

I have been the leader in my field for the last 5 years and see an absolutely massive potential for improvement with the right team around me...

Revenue,

I look at my projected units as ($40- $45 per unit),

100,000 units per annum,

2000 units per week,

Trading 7 days. 8am-6pm 6 days and Sundays 9am-6pm. 69 hours per week.

Projected average over the first 5 years of trading as follows,

Saturday (busiest day) approx 400- 600 units,
Sunday (second busiest) day approx 300 - 450 units,
Friday & Monday (3rd & 4th equally busiest) days 200 - 350 units,
Thursday (5th busiest day) 200 - 250/300 units,
Tuesday & Wednesday (6th & 7th busiest days)150 - 250 units,

This is a very big goal that I have set for myself and I doubt there would anyone more passionate then me about this particular field in Australia.

I can be contacted through this forum and further details can be forwarded to interested members etc :)

[gerryonline]

Apart from financial input, what else are you looking for from investors? did you just want them to be silent partners, or have a say in the running of the business?

[momillions]

Apart from financial input, what else are you looking for from investors? did you just want them to be silent partners, or have a say in the running of the business?

Hey Jerry,

I'm just looking for silent partners at this stage BUT I would consider there input and use of there network, it would depend on the individual/ groups inquiring...

Very importantly this business would need to be run by me using the systems/ arts that I have picked up along the way over a 10 year period... There are many ways that this type of business can be operated incorrectly and only one way to operate it correctly... This can be seen across the board in many businesses currently operating in Australia...

Obviously any constructive input would be reviewed but ultimately I would have final say to ensure revenue and labor costs are kept to optimum levels :)

[OutsourceSurvival.com]

Um.. to be honest, theres a number of reasons you're probably going to struggle.

- current investment climate is extremely risk averse
- numbers on a spreadsheet do not impress VCs unless they're real and audited.
- anyone who gives you that much money is going to have a strong say in the business. Unless of course you've already put up $20M in which case they'll still want a say but as a minority shareholder they'll have less swing.
- if it's so important that only you can run it, as an investor that would make me very nervous. What happens to my money if you get hit by a truck...
- if its not a going concern, turning over $25M right now, with an important strategic position in its market, a and clear exit strategy...

Anyway I could go on. Sounds like you have a long way to go before you're really ready to take on money. If you're serious, you could engage a professional to help you to prepare. You could also take a look at 'assob' - the australian small scale offerings board. That could be an angle for you.

Good luck,
Hugh

[momillions]

Um.. to be honest, theres a number of reasons you're probably going to struggle.

- current investment climate is extremely risk averse
- numbers on a spreadsheet do not impress VCs unless they're real and audited.
- anyone who gives you that much money is going to have a strong say in the business. Unless of course you've already put up $20M in which case they'll still want a say but as a minority shareholder they'll have less swing.
- if it's so important that only you can run it, as an investor that would make me very nervous. What happens to my money if you get hit by a truck...
- if its not a going concern, turning over $25M right now, with an important strategic position in its market, a and clear exit strategy...

Anyway I could go on. Sounds like you have a long way to go before you're really ready to take on money. If you're serious, you could engage a professional to help you to prepare. You could also take a look at 'assob' - the australian small scale offerings board. That could be an angle for you.

Good luck,
Hugh

Hey Hugh,

Thanks for the reply...

I have a fully operational business to support my figures and potential investors can view this business (fully operational) at any time...

I have been in contact with 2 potential investors/ parties over the last 18 months... One was very interested (we discussed and reviewed my proposal on 3 separate occasions and they were very impressed) we then made a formal offer on a site which was declined unfortunately... Our offer was based on a private evaluation which was performed by my potential investor... He is still very interested BUT has since parked his capital else where so it will be approx 2 -3 years before he is ready to review anything further...

The other party were interested but I didnt feel very comfortable with them so that was that...

Now its of the utmost importance that I run the business to maximize returns. Anyone can run the business BUT there can be substantial fluctuations in revenue and labor costs... From the out side looking in it would seem a bit selfish for me to state that I would have final say... Once I had discussed all the angles of this venture they (potential investors) would quickly see that I can get the best return on there investment and would be very confident in my ability/terms...

I have been operating the market leader for the last 5 years (smashed every sales record, goal and challenge that was set for me)... I have since moved on and the performance has dramatically dwindled since my departure... I have been asked to return to the position approx 10 times in the last 6-8 months. To put it quite simply im the operator that will get the best results... I have even been approached on a few occasions about consultancy work...

Now you asked if im serious and the answer to that is YES 100% serious and committed! Im not going to get hit by a truck insurance for loss of income would take care of that.

I have everything covered in my business plan which also includes an exit strategy and recover plan...

With the economic down turn I am looking to perch this proposal so we are "ready to go" when our economy is looking a little bit more "stable"

I will look into the info you provided and appreciate your input Hugh!

[Ben2802]

Hi Mo,

This sounds like a very interesting proposal. I currently work in capital raising and corporate advisory, and I would love to see some more details regarding your venture.

Whilst the issues raised by Hugh are very valid, if your business plan is properly thought out and logical, even risk averse investors will invest.

A question that must be raised is what is the current evaluation of your business? As Hugh mentioned in his reply, if an investor, or a group of investors provides you with $7million in capital, they will have to take control over the company unless it is has a pre-money valuation of around $15million.

What I do suggest is you calculate at the bare-minumum capital you will require for the first year of operations. This will give a much better picture of the company.

I am happy to sign an NDA and look at your business plan if you would like.

Regards,
Ben