Forums: Discussions for entrepreneurs and small business.

You wrote:
In other words, you`re asking for a very large sum, from what we`ve seen so far, in relation to what you`re actually doing and what you intend to do.

Let me phrase this down to it`s most simplistic and general basics, NOT in any way to impugn you or your business, but only to demonstrate what I`m seeing as the "core logic" of your proposition:
"I get a bunch of people to take care of houses. I don`t do it myself, I hire people. I make it easy by handling the hiring. Could you lend me a quarter of a million dollars so I can do this better?"

Craig,
    I am not concerned about being "impugned".  I am asking for critical feedback, and I thank you for giving it.  Telling me what makes me feel good would only waste time and money.
    The only part I would add to your ultra-reduction is that we also do the scheduling, supervision and assure the quality of work.  Other than that, I think you hit the nail on the head.
    I mentioned earlier that I am willing to start the business with much less money.  The $200K figure came from other input that I was asking for too little to attract investors, so I designed in some steps that reduced the business risk.  The actual lesser number is difficult to identify until loan terms are known,  but it is probably in the neighborhood of $120K.
    I spent quite a lot of effort, in response to your earlier suggestions, analyzing scenarios with fewer clients.  In each of those scenarios, the point of business failure was predictable, but the exercise did uncover some areas of unrealistically high spending.  That was beneficial.
    Since you identified the size of the loan request as the fundamental problem, do you believe that the $120K with moderately high risk is more attractive than $200K with moderate risk?

Darrel

Boy, I dunno Darrel. As I said, you`re getting into the financials of a business, and I`m thinking someone skilled in operations and finance would have a far more sophisticated vision on this.

I`m wondering if you can pick up one of the community members who specialize in this? I`m trying to think of a couple...I`d have to go back and read other posts.

I get the idea that asking for too little makes you seem like you`re not worth the time. That mostly rests on VCs and lenders looking for a percentage return on investment. So to lend $20,000 wouldn`t return enough money to make it worth the time and effort.

On the other hand, what`s the potential return on $200K? Not all that much, right?

It seems to me we`ve gone through a restructuring process on your logic, what`s your intent, and clarification of exactly what it is you`re wanting to do. I`d like to split out the "presentation" aspect, of how you answer the question, "So what do you do?" from the rest.

The financials would come under a "prospectus." It`s not that you need an analysis of how you`re presenting your prospectus. It`s rather that you have a good strong presentation, now you need a good solid prospectus. Maybe?