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Great Idea, but no way to get funding yet

 
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Te1280

posts: 7

Dec 10, 2007 12:49 PM ET    Quote  Report Abuse
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okay, i have an exit strategy in place for potenial investors.  It is a 6 year strategy that will average out to be roughly 25-30% return per year.  Again, I still run into the same problem of no angels investors to present this to.  How do I go about fix this situation or find investors?
robertj

posts: 1458

Dec 10, 2007 1:10 PM ET    Quote  Report Abuse
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Ask yourself - would you invest in this deal?  Not as the owner/operator but as an investor.
 
Without knowing details, the simplest exit is the "cash out"event via sale or public offering. Typically the company does not pay dividends during the "growth" period leading up to the EVENT so the deal translates into:  You (the investor) put up $500K today. At 25% per year, you would get back 3.81 times your investment or  just over $1.9 million after 6 years.
 
As an investor - is your perception of the risk involved commensurate with the possible return?


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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 10, 2007 2:50 PM ET    Quote  Report Abuse
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well, maybe I am being a bit nieve, but generally speaking it takes one roughly 6 years  to double their money and that is investing primarily in stocks that can average 12% over the 6 year period.  Any initial down years also make the requirement for the average return to be higher, due to the loss of principal, to double your money in 6 years........  Yes, this carries an inherently higher risk but the return is also almost 300% more than you general investment with the slightly above average stock market risk to generate the appropriate returns................................  So, the short answer is yes I do feel it is commensurate with the amount of risk taken, but again that is my opinion and may or may not be the opinion of the investor.

Te128012/10/2007 2:53 PM
Te1280

posts: 7

Dec 10, 2007 2:50 PM ET    Quote  Report Abuse
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What are your thoughts?

Te128012/10/2007 2:51 PM
robertj

posts: 1458

Dec 10, 2007 3:22 PM ET    Quote  Report Abuse
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When comparing the risks of a new business and the stock market, remember the liquidity factor. (you can sell stocks at any time while there is zero liquidity in a start-up)

You also need to address the "perceived" risks. (for example - the ability of the "team" to execute the plan as well as the "strength" of the plan) How would you rate yours?

robertj12/10/2007 3:25 PM


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

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


johnqh

posts: 113

Dec 10, 2007 4:27 PM ET    Quote  Report Abuse
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Te1280,

Remember investors also invest in the person (founder), not just the product.

Ask yourself - would you invest in someone who has bad credit, with no money, and seems who doesn`t understand investment in general?

If you (or anyone) want to get investment, the number one thing is to make yourself "turstworthy". Get your credit score up. Get your own finances in order. Have some savings - so you can tell investors "I am putting my own savings into this venture".

Otherwise, you have no chance to get any investment.

Just being honest.

johnqh2007-12-10 16:27:28
robertj

posts: 1458

Dec 11, 2007 11:50 AM ET    Quote  Report Abuse
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From my experience, the question of "how much of your own money do you have invested?" is actually related to the question of commitment. Investors want to feel that you are committed to the project - for the long haul.

robertj12/11/2007 11:52 AM


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

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


acunick

posts: 16

Dec 11, 2007 1:10 PM ET    Quote  Report Abuse
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Check out this website.  If anyone can get you financing it is this guy.  www.Luckmanandassociates.com

He specializes in this particular field.  THIS IS NOT A SCAM!  He has done this for many people and it is his business.  It is worth call to see if he can help you.

Mention my name Nick Sembello we were college roommates.  He is getting funding for me right now as well.

Best wishes

robertj

posts: 1458

Dec 11, 2007 1:25 PM ET    Quote  Report Abuse
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Nick,
 
The web site doesn`t really tell me much about Mr. Luckman or his services. When you say he is "getting funding for me" - will that be debt or equity?
 
 


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

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


acunick

posts: 16

Dec 11, 2007 1:46 PM ET    Quote  Report Abuse
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Hello,

I am not in his business so I probably can not answer your questions to specifically but he gets funding for small businesses or individuals.  These would be loans, not investors.  The thing is he has a patent on this way he analyzes and does financing for people to get them funding.  He works for you and leverages for you, verses the banks who leverage for themselves.  I hope this can help.  That is why I wrote on there it is worth a call to him.  I believe is small business and that is really what makes up the majority of US businesses.  I like to see people make their dreams come true.  He tells me that he can do what banks can not because that is his specialty.   I  have  no  vested interest  with it just  trying to provide options. 

Best wishes

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