QUOTE (hazed @ Mar 23 2010, 09:34 AM) We have been approached by Investors interested in providing funds to grow our company. We have completed most of the Business Plan, but are having difficulty with the Financial end, and showing how we propose to use the proceeds to not only build our business, but of course provide a good return for them. It just seems very difficult to project the plans for the money over the next 5-7 years, and have a proposal that makes sense, when dealing with real estate and all the variables with property costs, interest rates, projected returns, etc.
Does anyone have a good resource person for this, or know who we can possibly contact to assist with this part of the Business Plan? We are hoping to get the proposal in this week!
Many folks have money .. and will part with it for a few years. Here is what they look for:
a) trust in the operator: i.e. experience and character .. or the team assuming more than one operator
b) a sound plan, covering both sales, operational and financial aspects grounded in reality
c) security of some form, possibly personal guarantees or shares at the least
Cost of raising money is between 8-18% .. all in for networking, marketing, legal, sales commissions .. and it takes years to be able to receive significant sums unless you get lucky and your one idea connects with the one guy you met at a networking event.
Thus, to raise $2M you need to be prepared, and have in your plan, 160-360K of money for marketing your idea, flying around the country, seminars, phone calls .. and this cost is part of your expenses and has to be made up by the business proposition !
One way for you is to bring on board this "angel/money finder" for an equity stake plus hefty commission !
Feel free to send me the business plan as we place money, too .. and I will tell you my opinion / may invest even if the proposition is sound !
