usmcdannyboy 0 #1 January 11, 2007 Ok lets see if this works I need advice conserning a business I am taking over. I have a business plan at the bank right now. its been fully researched and the plan has been reviewed by the Small Business Development center and is ready for approval. but i need to find investors because I am a broke skydiver and i wasnt borne into a wealth family. So if you know where to find investors or another angle of attack...please chime in. you guys are the smartest group of people i know im sure there are people who have run into this problem too.I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
BIGUN 1,062 #2 January 11, 2007 If you are taking over the business, does it have any contracts (existing or new) that can be used as collateral to secure the loan? What type of business? How much do you need?Nobody has time to listen; because they're desperately chasing the need of being heard. Quote Share this post Link to post Share on other sites
Zeppo 0 #3 January 11, 2007 First off, I would not recommend any sort of angel investor for any business venture, unless you're truely willing for it to be a partnership. Most standard investors want equity for their investment, something I highly recommend you don't give up. Is this a small venture (less than $20 mil)? Do your best to get a variety of small business loans to help fund the business at start. What I did once was send out about 20 different loan applications, and I was able to raise about $150,000, in numerous small amounts (10k, here, 30k, there) Business development communities are also a way to get funds (with a sound business plan). I don't really know how much money you need, so the best approach may vary, but simply, I don't recommend an angel investor. You could consider, however, if the business warrents it, venture capital, your banker or accountant will be able to direct you to local sources for venture capital. (but even they will want a equity kicker, be careful on the agreement you sign with capitalist)What goes up, must come DOWN!!! Quote Share this post Link to post Share on other sites
jimmytavino 16 #4 January 11, 2007 it seems to be common that when a person "starts a business" the first thing they do,,, is take out a Loan!!! then they are behind the 8 ball, from the get go... Does this business have any income generating potential at PRESENT.???? If so,,,, start building slowly, do whatever it takes to increase receivables... Spend judiciously... Draw as SMALL a paycheck as you can... Leave the rest to form your OWN pool of Capital....for growth and expansion.... many feel that they will jump right to a 6 figure income, as soon as they "own their own business"...and that there are all sorts of "tax advantages". hahaha.. By the time you PAY your taxes, insurances, fees and certifications,,you'll be doing well if you are keeping your chin above water.... you need to be patiently aggressive the first few years....and YOU need to do as much of the work as possible, yourself. Of course each business is different than the next , but it seems to me that running out and becoming "indebted" is a tough way to start... Good Luck... work hard, be honest, stay consistant, develop a good client base, or customer base, depending on the nature of the work , and surround yourself with a good and accessible accountant, attorney if needed and co workers, as your plan grows and develops... .......ten cuidado............. jmy Quote Share this post Link to post Share on other sites
skysmurf2 0 #5 January 11, 2007 If your bank is willing to approve your business plan, they most likely would be willing to grant you a business loan. How did you submit a business plan without detailed financing options? The advice of take a loan is best - obviously it'd be nice if you could self-finance at least part of the amount - but if not get some collateral or as stated by an above poster see if you can leverage off some of the assets of the target. p.s. pls. don't include I wasn't born into a wealthy family as a reason for a loan BUT you could also try and compete for an entrepreneurial grant (either local, national, or education - if still in school). You could also try to gain the interest of a wealthy partner... in which case network your butt off unfortunately there prob. aren't too many skydivers with extra cash around Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #6 January 12, 2007 first of all I want to thank you all for your advice!!! ok here is my situation I was working for a guy who owns a small vending company (sole proprietorship) and he talked about selling. I asked questions and since i was working for him on windy rainy days I was able to look at every aspect of the company, even the books. we soon came to an agreement. the agreement was $350,000, lock stock and barrel. He has contracts with schools, large camp sites, hotels, and many small business owners. all told his assets are about $420,000 and thats was priced as used not new. he is holding a note for $150,000 and i am asking the bank for $200,000. The bank has told me they want me to have between $20,000 - $50,000 for my involvment (start-up) I am classified as a start-up business even though he has been in business for 15 years. The Financial information was taken from his tax returns and im afraid he definitly did not claim his full tax burden. I dont even think he realized exactly what his company makes because he pays all his bills in cash. so here is my prediciment. I just got out of the Marines and working for a local drop zone. I get a bad weather job and turns out to be a gold mine for me. I know im not going to all of a sudden make six figures, especially after the bank gets their cut. but I will work long and hard to get what I can out of it. and most of all i will be working a successfull business on my terms and no one to bitch about but myself I know i wasnt financially prepared to buy a business but I am prepared to make all the sacrifices I can to make it mine. well if there are any other questions...im sure there are plenty....but im sure i got 98% of everything covered...just trying to get the last 2% done and off my mind THANKS AGAIN !!!!I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
turtlespeed 212 #7 January 12, 2007 Quote you guys are the smartest group of people i know . . . There, right there, you see, you are doomed - Dooomed - - DOOOOOOOOMED BWAHAHAHAHAHAHHAHAI'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #8 January 12, 2007 yea I may be but I am also faithfull to my true love---SKYDIVING!!! Oh and dont think I didnt account for weekends off to jumpI am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
Gawain 0 #9 January 12, 2007 If you're a Marine, I'm sure your a vet, can you get any assistance from the VA? Do you own your house?So I try and I scream and I beg and I sigh Just to prove I'm alive, and it's alright 'Cause tonight there's a way I'll make light of my treacherous life Make light! Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #10 January 12, 2007 not directly...i get prefference with the Small business admin. just for being a vet..I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
Fast 0 #11 January 12, 2007 Quotenot directly...i get prefference with the Small business admin. just for being a vet.. Ask your parents to refinance thier house? haha ~D Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me. Swooping is taking one last poke at the bear before escaping it's cave - davelepka Quote Share this post Link to post Share on other sites
downwardspiral 0 #12 January 12, 2007 Why is he selling if its doing so well?www.FourWheelerHB.com Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #13 January 12, 2007 that was the first thing i did. then i went to my brother... then my Aunts,uncles,cousins,grand parents, second cousins, friends, friends of friends, and now im using my military skills to plan a bank heist..and possably a kidnaping or two...JUST KIDDING!!!! seriously though...the reason why i posted this was to see if there were any avenues i missed...does anyone know if there are grant and loans for business after they get started or just Bail money for struggling businesses...hell if i get the loan whats the possability for a small business line of credit?I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #14 January 12, 2007 He is getting too old to be loading and un loading the truck and all the travling....its definitly a young mans business to run alone...and he is eyeballing a resturaunt that is prime for a takeover too...he is liquidating his assets to buy them out too...there are alot of moving parts here and im just trying to focus on the ones that concern me and the company i want javascript:%20addTag('cool')I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
stitch 0 #15 January 12, 2007 Start a prostitution ring. "No cookies for you"- GFD "I don't think I like the sound of that" ~ MB65 Don't be a "Racer Hater" Quote Share this post Link to post Share on other sites
usmcdannyboy 0 #16 January 12, 2007 QuoteStart a prostitution ring. I thought of that...but that means i'll have to lower my standards even further...they're low already but they're still standards...I am the light my son...What you seek is fire Quote Share this post Link to post Share on other sites
