Forums: Discussions for entrepreneurs and small business.

Hi robert, 
I have read this feed and I still can not figure out what PM means.
Would you please fill me in?
Thanks,
Troy

Troy,

Sorry for the confusion. PM = private message

Robertj

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

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

Sportsguy,

PM means "Private Message".

You can click on the users profile/name and send a message directly to their mailbox and only they can see the message.  It is private, not public.

Hope this helps.

 

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

Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

If I were an investor, I would expect 30% annual return on investment into other people`s business.So, the number needs to work out 27K dividend on 90K investment.

Using your fair salary level, your expense would be around 120K (you need to add payroll tax, benefits etc, and some padding for unexpected expenses). That leaves 60K profit before tax, or about 45K after tax, depending on your state.

That means, I would want 60% equity if I were the investor.

I also have a question, does the investor expect immediate dividend of 30%? Most businesses don`t turn a profit in the first year. So how would that compute to an investor? Do investors expect there to be a lag time before dividends are paid?

Everyone,

Please do not go to the web address prlife45 posted on this thread.  All 4 of his posts have been SPAM and SOLICITATIONS.  I think the forum moderators need to delete his posts and delete his account. 

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

Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

I would be very, very, very sure that you want a partner before you accept money. The two biggest mistakes I see in small business clients are 1) taking clients early in the business that they shouldn`t take and 2) taking startup money that they regret accepting later. I would suggest that you consider reaching out to friends and family for a loan with attractive rates for the lender. This is much cheaper than bringing in an equity partner and it preserves your control over all aspects of the business. Once you outstrip the lending capacity of your personal network then I would start seeking capital from other sources.

axiomcpa,

Thank you for your message.

I contact the local SCORE chapter who has been assisting me with starting this company and the local SBA.  SBA backed loan seems like the direction I am going to attempt to take.

I have a good working relationship with a local bank here in town and going to speak with the Bank Manager tomorrow about this.

Thank you for all of your advice....I will keep you posted on the outcome of the loan.

 

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

Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

You mentioned early in the thread that you are looking to start a service company.  Generally service companies have very little need for start up capital, and there are often ways to boot strap your way to generating the cash flow to fund growth.  Its not easy, but you retain 100% equity which is great. 

If you still need cash to start, go with the 4 F`s - Family, Friends, Founders and Fools.

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

--
Mike Michalowicz
Author of The Toilet Paper Entrepreneur

Thank you bytenram,
I am grateful for any help.
T