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Te1280

posts: 7

Dec 07, 2007 2:20 PM ET Quote Report Abuse

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I am opening a business that runs around 60% net annual profit of the initial investment, theoretically. I have poor credit, no capital and no collateral. The banks won`t lend me money and investors are shy because it is in retail. Help. I need roughly $500K to do this. Any suggestions/ interest? I have run the books for concrete company that generates about 3million in revenue per year. So, I`m not new at this business thing I just never started my own business.

Trent

robertj

posts: 1458

Dec 07, 2007 2:33 PM ET Quote Report Abuse

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Trent,

Generally speaking, investors look at the quality of the plan and the probability that the "team" will be able to execute it.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Te1280

posts: 7

Dec 07, 2007 2:52 PM ET Quote Report Abuse

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so how do I get infront of those investors so I can convince them?

robertj

posts: 1458

Dec 07, 2007 3:54 PM ET Quote Report Abuse

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Introductions from "trusted" sources usually work far better than the "cold approach" method.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Te1280

posts: 7

Dec 07, 2007 4:57 PM ET Quote Report Abuse

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i understand what you are saying the problem is I don`t know of anyone who knows angel investors

robertj

posts: 1458

Dec 07, 2007 5:30 PM ET Quote Report Abuse

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Most of our client`s say the same thing when they come to us. So we coach them on our system that begins with Building your constituency.

Also, since investors are not a "homogeneous" group. we suggest developing an investor profile for your situation and offer.

divette

posts: 3

Dec 07, 2007 6:37 PM ET Quote Report Abuse

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I have the same situation with credit however I`m looking for a much smaller loan or investment ($25-30,000) who should I be asking?

robertj

posts: 1458

Dec 07, 2007 7:00 PM ET Quote Report Abuse

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divette,

It`s not just who - but how and when you approach them.

By when I mean - when you & the business are capital ready.

How includes the "language" you use when to communicate with potential investors.

entreplanet

posts: 36

Dec 09, 2007 3:15 PM ET Quote Report Abuse

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Typically, investors like to see an exit plan. They usually aren`t interested in dividends, rather, a sale of your company or an IPO, where they can make back a huge lump of cash for your investment. This may be a good thing to write into your business plan

-------------------------

My site: www.entreplanet.com

The community for entrepreneurs!

robertj

posts: 1458

Dec 10, 2007 11:37 AM ET Quote Report Abuse

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Venture capital firms (by their very nature) have a time line on each fund and therefore need an exit strategy for every investment. Since most "professional" angels expect the VC firms to be involved in future rounds - they want to ensure that the companies they invest in have an exit plan. Because of the dollar amount involved this "exit" usually has to be either going public or being acquired.

In the private investment community, we are seeing more acceptance of other "creative" liquidity strategies.

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