Forums: Discussions for entrepreneurs and small business.

I have been working on a business plan for around 2 years now.  I have been working with CPA’s, Attorney’s, Business Executives etc through the Small Business Development network at a local University here in Birmingham, AL.

As of last week we completed the final revision of my business plan. Now I am in the stages of finding a partner, angel investor (someone with the capital).

The business I am starting is not unique, however it is well thought out and the approach and market I will reach is very broad while using a unique method.

I am currently a systems engineer and have around 15 years of experience in the technology industry which is what my company would fall under. I have a career portfolio with my resume, technical certifications, letters of recommendation from C- level executives, accountants, attorneys etc.  I am personable, experienced and good at what I do.

I have a few issues with finding capital as it is hard for me to ASK for something. I have credit cards, savings etc and if needed I could have around $10k on hand.  What I need is $90k for the first year of operating expenses with a projected $180k of 1^st year sales.

For the individuals that have obtained funding what have you done? 

Also,   what are the risks of disclosing my business plan to people? 

Thank you all for your comments and concern.

Gerald

Is the operation expense before or after your salary? What`s a fair salary for you at your location if the business takes off?

PiperTax,

Thank you for your response.

The business is not unique at all, however there is one key element that will set me apart from the other 200,000 service providers out there. This one element hasn`t been tapped yet and I want to keep that as secretive as possible.

:)

johnqh,

Thank you for your post. The figure was incorrect when I posted it last night. It should actually be 90k for the first year of operating expenses.  This is with my salary of $45k a year, one technician of $20k, and a clerk to take calls etc at $14k a year and 21k for business expenditures.

If the business takes off a fair salary would most likely be 55-60k. This is the average in my area of town for Technology Directors/Managers.

What are your thoughts?

How do you plan to provide an appropriate ROI (return on investment) to the person who supplies the capital?

robertj,

This aspect has not been thoroughly thought about.  I was initially going to use the cash I had on hand.

I am recently married and this changed how much cash I have on hand.  This is what led me to getting on this forum as I don’t know anything about raising capital. What is acceptable practice etc. My CPA is changing my business plan to reflect this change as well. I have yet to actually sit down and discuss this thoroughly with him, which I plan on doing in a week or two.

Any advice you can lend my way?

Technically, capital comes in the form of debt, equity or grant. However, using a combination of sources and methods, we have identified over 50 ways to bring capital into a business. The “optimum” funding strategy for you (or anyone) will depend on your specific situation.

Send me a PM if you want to discuss details.

Robertj,

Thank you for your response.  I have sent you a PM.