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    23 Replies Latest reply on May 29, 2008 12:46 AM by PeoplePawn

    Investors

    Jon.icp Newbie
      Where can I find investors to help with start up for my company?
        • Re: Investors
          Techie Wayfarer
          Do you have a business plan already prepared to show potential investors? There are investors for specific industries that you can submit your plan to. What industry are you in? Alternatively, I wouldn't forget the power of friends & family & other people that you may want to reach out to and see if they'd like to invest. Also, are you using any of your own funding to invest in your business? Typically, investors want to know that you have a stake in the business as well.
          1 of 1 people found this helpful
            • Re: Investors
              Jon.icp Newbie
              I need help to finish my business plan. I need to put it on paper. I will be in the hotel industry. At, this time I do not have and friends or family to invest in my company. I have an idea that will bring steady income and steady growth and steady profits. I will be hands on working in all aspects oft the company. I will do most of the work. I will do everything I can to help this company grow. All my time and effort will be in this company and it will 120% of me to run the company. I want all parties involved to to get as much as they can from their investment.
            • Re: Investors
              LUCKIEST Guide
              Jon, You need to tell us more. Techie has some good points. It is hard to answer questions without knowing
              more about you and your company. How long have you been in business or are you just starting out??
              Why would investors want to invest in you?? Will there be funds to repay the investors??
              Have you developed a BUSINESS PLAN and a CASH FLOW PROJECTION??
              Tell us more, LUCKIEST
              1 of 1 people found this helpful
                • Re: Investors
                  Jon.icp Newbie
                  I will be in the hotel industry. I am just starting out. There will be funds to repay investors, either a certain percent of the net profits or a set amount over a set amount of years. This company is my life. I can not let this company go anywhere but up. I will put in 120% of me into it. The cash flow will be at least $750,000 gross a year. Need help to finish business plan and put on paper. Right now I am goingto school full time and work full time. The classes I am taking will help with this business.
                    • Re: Investors
                      LUCKIEST Guide
                      We will be happy to look at your business plan and help.
                      Stay in contact, LUCKIEST
                        • Re: Investors
                          Jon.icp Newbie
                          Is there a place I can go to get help with my business plan?
                            • Re: Investors
                              DomainDiva Ranger
                              There are a lot of online rescources. Garage.com has some good rescources. Be sure to write your executive summary and never give out a business plan without a non disclosure agreement. You can pass ouot the Executive Summary to everyone. Those that are interested will then want to see your business plan. NEVER give the plan to anyone but a qualified investor who is willinbg to sign an NDA.

                              Cliff Ennico has a good book: Small Business Survival Guide. He has a lot of good general knowledge that is invaluable. You may want to pick up a copy as well. He also has a website.

                              DO keep up posted.
                                • Re: Investors
                                  Jon.icp Newbie
                                  This is what I have so far. If I need anything else let me know.

                                   

                                  Jon Miler's Comfort Inn

                                   

                                  Jon Miler

                                   

                                  3037 Rolling Meadow Drive

                                   

                                  Plano, TX 75025

                                   


                                  Phone: 214-536-2517

                                   

                                  Email: mailto:icp39@netzero.net

                                   


                                  Management:

                                   

                                  Owner - Jon Miler

                                   

                                  CEO - Jon Miler

                                   

                                  VP Sales/Marketing - Jon Miler

                                   

                                  CFO - Jon Miler

                                   


                                  Industry: Hospitality

                                   


                                  Number of Employees:

                                   


                                  Bank:

                                   


                                  Amount of Financing: $4,000,000 equity

                                   


                                  Current Investors: N/A

                                   


                                  Use of Funds: Land, building and contents in building and six month starting payroll

                                   


                                  Business Description: The opening of the Comfort Inn in the North Texas area will give a place for people to stay during large events like the weekend of the OU game and other large events. The Comfort Inn will be built new and from the ground up. The hotel will be fully upgraded and provide

                                   


                                  \\
                                  Briefly describe the general nature of your company. From this section the investor must be convinced of the uniqueness of the business and gain a clear idea of the market in which the company will operate.

                                   


                                  Company background

                                   


                                  Products/Services: Convey to the investor that the company and product truly fill an unmet need in the market place. The characteristics that set the product and company apart from the competition need to be identified.

                                   


                                  Markets: provide a clear description of your target market and any market segments that may exist within that market. Include potential market size and growth rate.

                                   


                                  Revenue:

                                   


                                  Est. Revenue for next year is $750,000 gross.

                                   

                                  I have left off some information blank for now. The final will have all information filled in.

                                  This post is also for anyone that can help.
                        • Re: Investors
                          Lighthouse24 Ranger

                          Jon, I have clients in the hospitality industry (including Vegas properties - places you've heard of), so I know a little about your type of business. I'm about to write some things that may seem harsh, but their intent to help you move forward.

                          There are people in the hotel investment world that everyone knows -- and even those guys can't find first mortgage debt capital right now -- at least, not at a loan-to-value ratio and interest rate that would allow them to get the rate of return they need. The reasons are many, but include the fact that most hotel/motel operations have failed to meet cash flow projections since 1999-2000, the industry is anticipating as recession as gas/travel costs rise, the number of suitable properties that are available for acquisition and cost-effective rehabilitation make new construction less attractive, and both wages and utility costs are rising while the rates a property can charge to keep rooms filled is not (meaning profits are being squeezed even more). I know that you're excited and really want to build your place, but this is simply not the best time to do that, and an even worse time to be trying to get someone else's money to do it.

                          Should you give up on the idea? Absolutely not! You just need to wait until the current conditions change (and they will), AND you need to make very good use of the time you spend waiting. Here's what I mean by that:

                          You wrote that you're going to run the hotel. Your potential investors will read that and realize that they will never get their money back unless you know how to run a hotel very, very well. You have to show them proof of that up front. Your business plan lists you as the manager. Have you ever managed a hotel and do you have experience hiring and supervising the various skills and crafts involved (housekeeping, maintenance, cleaning, catering, etc.)? If not, you need to do that while you're waiting -- you need industry experience on your resume.

                          Your post indicates that you are the CFO. Are you an accountant or do you have a degree in finance? No one is going to hand you $4 million of their money unless they know you've properly handled more than that before. If you haven't, and if you don't intend to pursue a career in finance, you need to be networking (here and elsewhere) to find a qualified person who is as passionate as you are about getting into the lodging industry, and then have him/her join the team and serve as CFO.

                          Your post indicates that you are the VP of Sales and Marketing. Again, what experience do you have here? As much as you need hotel management experience on your resume to prove you can manage people and control costs, you need sales and marketing experience to prove you can bring in customers and revenue -- or you need to find someone for your team who has that experience.

                          Bottom line, potential investors must believe in YOU and your management team. So spend time now developing yourself and building your team -- so when conditions change, you'll be ready to present a plan that really impresses those potential investors.

                          Best wishes for success!
                            • Re: Investors
                              Jon.icp Newbie

                              I am in the process of getting a CFO, CEO, VP of Marketing and Sales and a Manager with the combined history in their field of 35 years. CFO, 20 years. CEO, 6 years. VP of Marketing and Sales, 5 and Manager, 4 years. I am happy to have a great team to start with. Is there anything else I need to have "under my belt" that would help in asking for capital?
                                • Re: Investors
                                  assetsbuilder Newbie

                                  Hello Jon.ICP Have you ever thought about doing commercial financing for the hotel? I know a few lenders out there that specialize in hotel/motel financing. This would/might limit your need to raise a ton of capital.
                                  • Re: Investors
                                    Jon.icp Newbie
                                    My business is only in Texas.
                                    • Re: Investors
                                      Lighthouse24 Ranger

                                      Great news that you've assembled an experienced management team! The next major issue that will influence potential investors will be your site selection. Have you purchased the land and had it surveyed? For a new commercial property like a hotel/motel, the necessary zoning, access, utilities, parking, drainage, etc. (during the construction phase and after opening) are often issues that can double the projected investment costs. Cost overruns seem to occur on about 96 percent of commercial projects these days, and that tends to frighten potential investors. Be prepared to show you have investigated all the site development issues, resolved any questions, and have a sound plan in place.

                                      assetsbuilder offers good news. As noted in my initial post, I'm aware of investors who would back the purchase of an existing hotel/motel for a new independent owner/operator, or new construction for a hotel chain or an established independent operator with other successful properties -- but I don't know anyone who'd provide substantial funding for new hotel construction to a new company/operator. assestsbuilder writes that he/she does know such lenders, so please follow up on that! Best of luck to you.
                                      • Re: Investors
                                        Lighthouse24 Ranger
                                        Hello, Jon . . . was curious on how your plan is progressing. Please give us an update when you have the chance. Thanks!
                                        • Re: Investors
                                          PeoplePawn Wayfarer
                                          Please understand that "Angel" investors and "Venture Capital" investors are 2 completely different investor audiences, with completely different deal expectations for investing.

                                          It is not a common mistake that companies seeking investment misunderstand the basic differences of these two investment groups.

                                          A little homework in this area will pay huge dividends, as these audiences have little patience for entrepreneurs that are unprepared.

                                          Please let me know if there is additional information that I can support.

                                          Regards,

                                          Patrick Kane - Patrick@PeoplePawn.com
                                          www.PeoplePawn.com
                                      • Re: Investors
                                        carl528m Newbie
                                        I saw your resume, think it's okay for a small business. If you haven't gotten help yet, talk to me on yhu chat with my present id.

                                        Is till think a good "business plan" presented to people you know can help locally.
                                        • Re: Investors
                                          LUCKIEST Guide
                                          Good answers to your question. How about SCORE. I am an SCORE Counselor in New York.
                                          You can visit SCORE both in person (at your local SCORE office) or on line.
                                          LUCKIEST