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Finance for new business idea. | |
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 Jman0073 posts At: 17/02/09 Member |
Hi Guys, First time user and can I just say this site is fantastic! Congratulations on creating a site that is extremely informative and easy to use. As the title says I have a new business idea that I am trying to get off the ground. I have spent the past 6 months putting together a 20 page business plan along with the first 5 years P&L forecasts. I have a huge amount of confidence in this idea but I am lacking finance options. I am 25, been working in the industry since I was 17. I have worked on-course, wholesale, internet based and overseas. I believe I have the knowledge and experience to make this work. Any advice would be greatly appreciated. Thanks for your time. J Last Updated On: 20 Feb 2009 12:45:57 PM |
 Administrator16 posts At: 18/02/09 Administrator |
Thanks for joining and for the great feedback about the site. Its great to see someone with the entrepreneur attitude!! You have peaked my interest in what you have in mind. Finance - a few ways to research, though you will need have to have a pretty good plan /product for you to get finance approved along with possible collateral needed. 1) Schedule a meeting with your local bank manager and bring your business plan. They will give you alot of feedback and advice for what your options are. Best thing is that this would be pretty free except for your time. 2) Find some investors such as your family, or family friends. though this can be a difficult thing if it all goes bad. 3) Save some money, break your plan into a longer time frame and fund it y our self. Get an ABN number and try to get some work that will allow you to be employed this way. This way any extra revenue earned can be diverted into your company to pay for your product development instead of using income that has already been taxed. 4) Patent your product then shop it around to a company to buy it from you. Anyways a few different ideas, seek professional tax advice etc for whichever way you decide to go. Best of luck and let us know if you have any other questions or need help. Cheers |
| Jman007 3 posts At: 19/02/09 Member |
Hi Mike, Thank you so much for getting back to me! Can't say enough about your site except anyone in the golf industry who is not using your resources is CRAZY! In regards to your dot points 1) Is a great idea, I have been steering away from the banks as I know they will say "NO".I have limited collateral behind me (I need alot of money for initial start up, but am working on a second plan that will require less money). Its definitely worth my time to arrange a meeting and get their thoughts on the whole thing. Go in there looking for more advice rather than going in for money. 2) I don't want to go down that path even if they were throwing money at me. I could not deal with the ramifications and trouble if the business didn't take off (as I said I am extremely confident in my plan BUT as we all know in business that can mean squat! You still have to be realistic.) Also, again I am looking for quite a bit of money for initial start up so I think family and friends are off the table. 3) Isn't an option, part of the plan which is crucial to its success is that we attack this with guns blazing. It will not survive trying to do it on the cheap or cutting corners. I am not selling a new product it will be a new business. 4) Again not selling a new product. I think my best bet is to find some private investors and pitch to them. I was wondering if you could give me any tips on what key things they are looking for (things to include in my pitch)? I have spoken with a few people and the thought is that most investors want around 5 - 10 times their money back in 5 or 6 years? What are your thoughts Mike? Any tips on pitching to investors would be great! Thanks so much once again Mike, I really appreciate you taking the time to chat with me and for setting up this fantastic site. On behalf of the whole industry, THANK YOU! Look forward to your reply. Last Updated On: 20 Feb 2009 12:50:05 PM |
| Administrator 16 posts At: 20/02/09 Administrator |
Hey Jman Thanks again for the feedback! Anyone that is wanting to take a "high" risk investment into a new product or service business, will want a much bigger return than if they did an investment in a low risk venture such as a bank bond, CD, etc. I dont know what the actual return rate or timeframe would be for the return as everyone would be different. Best starting point is to meet with the bank and get there objective feedback, ultimately a bank will end up funding in someway unless you find a rich investor. It used to be a general rule of thumb that you would break even in maximum 3 years, but this may have changed with the economy. A strong business plan would be necessary along with financial forecasts that are very sound. make sure you put in all your assumptions of how you came up with the figures. How much capital cost do you think you will need? Mike |
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