Forums: Discussions for entrepreneurs and small business.

Soldu2,

Getting there--but not there yet.  Right now you have something that has a current value of something less than a million that is just breaking even. 

Here are some areas you still have to quantify:

you haven`t determined what you think the realistic potential of the company is, nor a time-frame. 

you haven`t determined the dollars you are seeking.  One way of looking at that would be to determine how much need minus what you have.  The remainder must come from somewhere.  So, if you need 5 million and have 1.5 million, then you have to figure out where the other 3.5 million will come from--it sounds like investors

what are the sales and cash flow projections for the first 60 months?  An investor will want to see a month by month proforma.  I.e., what anticipated sales will be, where those sales will be coming from, what the expenses are, including taxes and what`s left over.

You haven`t identified your competition yet.  Everyone has competition.  It may not be direct in the sense that they do the same or a similar service as you, but there are alternatives to every product or service--including nothing.  Not doing anything is a competitor.  What are those potential alternatives and what are your advantages--and possibly disadvantages. For example, we all take computers for granted.  There isn`t anything else like a computer (in all its various forms).  It has no competition.  But it does.  There are still people who would never think of using a computer and they exist quite well.  And they don`t miss anything they`d get on a computer.  They just have to have a lot of things that do the job a single computer does.  They need a typewriter, newspapers, televisions, record players, recorders, etc.  Combined, these things do everything a computer can do--it just takes a whole lot of them to do what one little box can do.  But there are a lot of people who prefer those alternatives to the computer.

Like I said, you`re getting there, just not quite there yet.

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

Paul McCord Author, Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals http://www.powerreferralselling.com

Thank you for your post Innovator7, you were not critical. It was in the spirit of educating the the new guy. I’m happy to have the opportunity to chat with highly skilled and experienced folks like you.

 

Those numbers differently change the perspective.

 

Also, I am working on the above pmccord post.

 

Sold