IF you could build a company, with $600k invested...

[yllus]

34% is easily in venture capital firm territory, so if you need funding and have something legitimate on your hands you could always go that route. They'd probably want to replace you with an experienced manager.

 

[MikeMike]

34% is easily in venture capital firm territory, so if you need funding and have something legitimate on your hands you could always go that route. They'd probably want to replace you with an experienced manager.

I have the experience covered from outside sources if i so need to. (i already assume i will)

 

[MikeMike]

You WORST scenario is guaranteed profitability? ...

initial investment in that scenario drops, as well as most of my other numbers other than initial market share (3&#37.

i honestly believe my initial investment would be $300-$700k needed. depending upon a LOT of things

 

[ElFenix]

I have no previous business idea history, i have never made a plan before, and i have never written a feasibility study before...

this is all for a class, but the idea, and numbers are VERY real...

Feasibility study for class is due tuesday...

fedex started as a class study

 

[alkemyst]

On paper most business ideas look really good.

 

[MikeMike]

On paper most business ideas look really good.

like, the idea. or the whole premise?

because the premise is what makes an idea...

 

[alkemyst]

Sometimes all of it, sometimes some of it.

I knew a guy that though he could sell a $10,000 sofa every two days in NYC. I am sure there are some shops there doing it.

He ended up still in business, but not as lucrative as he thought.

 

[Elbryn]

not personally, but the ability to obtain the resources is at hand...

and, the WORST possible scenario i can come up with (reducing initial investment, and halving the market, as well as margins) you get 18% ROI per year with profitability after 4 years (which sucks).

I am still attempting to determine what my initial investment needs to be. So I am trying to guess high, with low numbers else where.

you're only cutting initial investment and margins. what happens if sales does not meet expectations. look, if you honest to god have a solid business case with what you are saying, you would want to go as big as you could as fast as you could, no? and no venture capitalist would turn you down becuase it's a guarentee for profitability.

how are you funding this? is there a cost of capital? debt service? direct equity control?

what about competition? do you have entry barriers or a competitive advantage? if you dont and the business is easily replicable, have you factored in similar competition? with that type of profitability, it will be noticed.

market segmentation? whos buying this? are there enough of them? or enough types of them to support this?

is there a first mover advantage here? economies of scale to be factored? if someone else comes along with more capital, can they now underprice you? what if they are willing to take a loss in order to take you out?

any of this stuff rely on patented stuff? licensing is another cost.

can you question the data that you're using to generate your projections? how was the data collected and will that potentially affect any of your dependencies?

finally, what's your exit point?

understood, you're excited, you may have a great idea. think it through, i'm guessing this aint no facebook where all you need is an internet connection, a webserver and some coders (or yourself if you have those skills). just lots of random questions. maybe they'll help. maybe not

 

[MikeMike]

never saw this post, but since i just completed the full B. Plan, i'll answer what i can while being vague at the same time

Updates on numbers and estimates below this quote

you're only cutting initial investment and margins. what happens if sales does not meet expectations. look, if you honest to god have a solid business case with what you are saying, you would want to go as big as you could as fast as you could, no? and no venture capitalist would turn you down becuase it's a guarentee for profitability.
easily scaled either way

how are you funding this? is there a cost of capital? debt service? direct equity control?
$200k loan/angel investors/F&F, $330k from investors 10% interest on loan if i get a business loan

what about competition? do you have entry barriers or a competitive advantage? if you dont and the business is easily replicable, have you factored in similar competition? with that type of profitability, it will be noticed.
first mover advantage as stated below, potential contracts limiting competition

market segmentation? whos buying this? are there enough of them? or enough types of them to support this?
fairly diverse, 7.2M potential market estimated in year 1, only expanding

is there a first mover advantage here? YES
economies of scale to be factored? YES
if someone else comes along with more capital, can they now underprice you? doubtful
what if they are willing to take a loss in order to take you out? so be it ill take that chance

any of this stuff rely on patented stuff? licensing is another cost.
Not sure on this, it's theoretically possible but i don't know for sure

can you question the data that you're using to generate your projections?
yes, easily
how was the data collected and will that potentially affect any of your dependencies?
market reseach papers from a specific and highly trusted reputable source

finally, what's your exit point?
exit strategy: probably sell out after 5 years.

understood, you're excited, you may have a great idea. think it through, i'm guessing this aint no facebook where all you need is an internet connection, a webserver and some coders (or yourself if you have those skills). just lots of random questions. maybe they'll help. maybe not

We are seeking $330,000 in investment capital for a 40% stake in our company. Our service model is based upon what we consider achievable and conservative assumptions. Profitability will be achieved within the first full year of operations, with a 13.9% EBITDA on revenues of 10.3M in five years. With an estimated average yearly ROI of 24% and a ROI of 118% after 5 years this is a highly lucrative investment opportunity.

The initial funding will cover the expenses for the entirety of the operation

216K users in year one, scaling to ~5M by year 5, not including the potential market expansion which changes everything, and in my mind would take place in year 4, doubling the potential market (i didn't include this as it was to much work for me for the class project)

 

[vi edit]

Picking up where 4Loco left off....we present to you.....5loco.

Now including cocaine flavored sweat dripped off a dead hookers ass.

 

[highland145]

Picking up where 4Loco left off....we present to you.....5loco.

Now including cocaine flavored sweat dripped off a dead hookers ass.

Dead hookers asses? What?

 

[MikeMike]

Picking up where 4Loco left off....we present to you.....5loco.

Now including cocaine flavored sweat dripped down a dead hookers ass crack.

ftfy... just sayin

and no, it's not a product... it's a service and as i like to call it a "disruptive technology"