Shop Financing

[bhenken08]

Hey guys it has been a long time since iv been on here, any how i have been having a hard time securing funding for my shop. and was wondering if any one has ever done a big presentation to strangers trying to get them to invest?

I’m thinking about doing this.

Gonna try and make a deal like this

Full funding for 5k a year interest
and 20k for every store i open after the first one 100k max
no payments for a year

I’m nuts?

 

[Pizzamancer]

Yes

 

[bhenken08]

thanks I’m glad I’m nuts

But lets say you were a perspective investor. and you were going to invest 75k

with what terms would you do it?

I’m trying to get a god plan together to convince someone to invest shoot me your ideas!!!

 

[Pizzamancer]

The bottom line is if a bank won’t lend you the cash why in the hell would the average person? Post your business plan here. Post a marketing plan. There are many many people here who would tear it apart (what you need).

Just you dropping the figure of 75k makes me skeptical of your ability to do due diligence.

 

[indie_pizza]

Pizzamancer:

The bottom line is if a bank won’t lend you the cash why in the hell would the average person?

Free market brother! A savvy investor can make a lot more off of businesses a bank would never touch.

bhenken08: If you were EXTREMELY lucky, you could get 8.5%APR on something like that.

 

[Pizzamancer]

indie pizza:

Free market brother! A savvy investor can make a lot more off of businesses a bank would never touch.

Preaching to the choir brother! A savvy investor would not touch this guy with a 10 food peel.

 

[bodegahwy]

If I were very confident in the business plan and the person, I would consider a deal where I was assured 10% with the chance of making 20%.

A note with 10% interest payable from day one that was convertable to ownership which the business could buy back would be the structure of the deal.

Private investors are not angels.

 

[bhenken08]

Pizzamancer:

The bottom line is if a bank won’t lend you the cash why in the hell would the average person? Post your business plan here. Post a marketing plan. There are many many people here who would tear it apart (what you need).

Just you dropping the figure of 75k makes me skeptical of your ability to do due diligence.

First of all i would need is 75K, i have 15k and another family investment of 15k. And the bank will only give me 50k seeing as I’m only 19

who knows right now my projections still might be off.BTW i’m not just gonna walk up to someone and give them my pitch I’m gonna be well prepared with the best possible start up cost appraisal, the logo, menu, location and so on

BTW I’m not just some jackass 19 Year old. I’m getting my AAS in business next quarter and have been managing a little Caesars for a year.

 

[steveo922]

bhenken08:

Pizzamancer:

The bottom line is if a bank won’t lend you the cash why in the hell would the average person? Post your business plan here. Post a marketing plan. There are many many people here who would tear it apart (what you need).

Just you dropping the figure of 75k makes me skeptical of your ability to do due diligence.

First of all i would need is 75K, i have 15k and another family investment of 15k. And the bank will only give me 50k seeing as I’m only 19

who knows right now my projections still might be off.BTW i’m not just gonna walk up to someone and give them my pitch I’m gonna be well prepared with the best possible start up cost appraisal, the logo, menu, location and so on

BTW I’m not just some jackass 19 Year old. I’m getting my AAS in business next quarter and have been managing a little Caesars for a year.

Honestly. Not saying you’re not capable but you have A LOT to learn being only 19 (even though you’re not just some jackass 19 year old) and only 1 year in the business (especially a pizza chain like L.C.). I don’t know why anyone would invest money in you seeing as in what, 3 out of 4 restaurants fail… You can’t GUARANTEE they will see ANY return on their money in ANY amount of time.

The guys are right, you need a solid, detailed business plan along with a marketing plan. Theres a lot more work that goes into it than you think.

Plus if you think you could build a shop for less than 150k, you’re going to need 3 times that just to survive.