A guide to soliciting for investors/partners/buyers for your company

[rogercbryan]

I see a lot of posts on here from people wanting to sell a company. The question I want to ask is; what information are you looking for when you consider buying a company? Everyone seems to have some wonderful ideas, but when it comes to monetizing those ideas even I seem to have problems.

I’ve been in discussions with a few people on this site about buying their company and/or loaning money. I’ve yet to do a deal because I feel that many people here do not know what information that should have ready before soliciting for investors/partners/buyers. I’m wondering if we all might be able to put our heads together to come up with a guide for Young Entrepreneurs looking to gain investors/partners/buyers.

Here are the first few things that I ask for:
1- A Business Plan- I’ve yet to talk to a person on their site who has one. Before you submit a request for investors/partners/buyers you MUST have a business plan. This should be a well organized package with all your pertinent information. It should include:
a. Basic Outline
b. Mission Statement
c. Organizational Structure
d. Growth Outlook
e. Evaluation of Competition
f. Offer Request (what are you looking for and why- investors/partners/buyers)

2- Financial Statement of some kind- Each solicitation is different and some may not warrant full disclosure. If you are going to ask someone to invest $25,000 into something you need to sell them on more then your idea. Show them what you have already done and you may be able to convince them that you can do more.

I typically like to see 6-18 months worth of statements before I will even attempt to look at someone’s plans. This shows me that they have some idea as to what they are doing.
a. Profit and Loss
b. Balance Sheet
c. Cash Flow Statement

3- If you don’t have a full business plan for what ever reason and yet you still want to solicit for investors/partners/buyers then at least know what you are looking for. If you ask to borrow $25,000 you should be able to tell the person you are asking the following:
a. What you are going to use the money for IN DETAIL
b. How will you compensate this person for their investment
c. What % of the company are you looking to sell
d. What do you have to offer as collateral

I know everyone hopes and dreams that they will list their company for sale and some will just write them a check. Well that isn’t going to happen (in 99.99% of the cases). You need to know what you are looking for before anyone can give it to you. You will be amazed at how much more success you have in your solicitations once you have organized your thoughts.

I started this post to get everyone else’s ideas not just to share mine. If we were to create a guide for everyone on this site to use when attempting to find investors/partners/buyers what would you want to see? For all of you who I am currently working with on this site you will notice that these are the same questions I’ve sent over to you. I truly believe that there are a few of you on this site with amazing ideas. You are just not taking the time to sell them properly.

Feedback? Bitch-moans-groans-complaints?

Roger Bryan

[haze]

Very helpful of you to post an informative piece about what investors would like to see. I think that often people overlook a lot of the simpler things, when they think they have an idea that can, for the most part, sell itself.

[akula]

Feedback? Bitch-moans-groans-complaints?

roger, let me be the first to bitch
the way for you to stop stop sounding like a baby is to use words and procedures that grown ups use in communicating business related knowledge

things like "what information are you looking for when you consider buying a company?" is called due diligence. there is plenty of checklists/info/books about the process..the other thing, obviously, is your failure to reference your information

overall, the lack of proper vocabulary and referencing indicates that you have a limited understanding of what you're talking about...i mean..there are endless specific shortcomings to what you've written about DD, but i fail to see the point in helping you to correct the content

do you really wanna advise peeps about this stuff (like, for real)?

[rogercbryan]

I wrote this becuase I felt like every person I was communicating with in regards to loans and/or partnerships all lacked the same basic information.

There was no need to give references as this was all from personal experience. I felt like it would have been a little facetious to tell people how to communicate with me when looking for an investor/partner. I have a successful consulting company that I started in my living room and I'm looking for places to invest some of my money. In trying to do that I was getting a little frustrated by the lack of preparedness of people soliciting for investors/partners.

As for the vocabulary I'm indifferent. If you could please elaborate on my short comings it could only help me and anyone else who reads this post.

[akula]

sure. chief, first of all, i think you are very clever and competent. secondly, why do you want this info? do you wanna consult entrepreneurs on financing? or write some sort of a booklet or smthg?

[Nigami Enterprise]

sure. chief, first of all, i think you are very clever and competent. secondly, why do you want this info? do you wanna consult entrepreneurs on financing? or write some sort of a booklet or smthg?

Lol "chief" he ain't no indian.

Does anyone ever like to be called chief, champion, bro, cuz or boss ect?

Personally it drives me mad.

just my 2 cents

[akula]

hahha, i'll restrain my self from saying that i can think of at least a few other salutations to throw in your general direction
btw: happy new year nigami

[stand856]

Lol "chief" he ain't no indian.

Does anyone ever like to be called chief, champion, bro, cuz or boss ect?

Personally it drives me mad.

just my 2 cents

What about Mate, buddy, nephew, son?

[akula]

skipper!! as in "flip it over this way, captn'!"

[rogercbryan]

sure. chief, first of all, i think you are very clever and competent. secondly, why do you want this info? do you wanna consult entrepreneurs on financing? or write some sort of a booklet or smthg?

I wrote this because I'm interested in investing in or purchasing other small companies. I have no intent on consulting people in this regards nor do I intend to write a book. My skills lie in small business incubation and growth strategies. The idea of purchasing someone else’s idea or business is new to me.

When I first solicited for inventors for the two companies I own these were some the questions I was asked. As I now try to turn the table and become the investor it would be helpful to me if the people I’m talking to at least had a basic amount of information to present.

I would truly like more feedback from everyone as to what information they would like to see from people soliciting for investors/partners/buyers. I did not mean to sound like my post was a ‘complete’ list of requirements.

[akula]

no worries
there's plenty of acquisition diligence checklists out there
what kind of companies you wanna buy?

I wrote this because I'm interested in investing in or purchasing other small companies. I have no intent on consulting people in this regards nor do I intend to write a book. My skills lie in small business incubation and growth strategies. The idea of purchasing someone else’s idea or business is new to me.

When I first solicited for inventors for the two companies I own these were some the questions I was asked. As I now try to turn the table and become the investor it would be helpful to me if the people I’m talking to at least had a basic amount of information to present.

I would truly like more feedback from everyone as to what information they would like to see from people soliciting for investors/partners/buyers. I did not mean to sound like my post was a ‘complete’ list of requirements.

[rogercbryan]

I primarily work in the auto industry (auto auctions, dealerships, salvage yards, and parts). Anything in that market segment would be interesting to me. This could be an auction for sale, large volume parts orders, websites catering to the auto industry (a company that is an established eBay partner would be nice), or someone looking to sell their vehicle donation client list or website.

I currently have two live auctions (brick and mortar) that I work with, so any home electronics supply companies would work. I would also be interested in companies that import furniture, antiques, or collectibles from anywhere in Asia.

Lastly, I’m looking for online stores with pre-established supply chains. Someone who has a pre-established store front with current traffic and sales would work. I’m not looking to buy a storefront that is 2 months old and has zero sales.

I’m open to any and all offers. I like the 100-10-1 rule. I’ll need to look at 100 business plans to find 10 decent ideas and I’ll ultimately choose one. Not sure who the original author of that idea is, but I read it Milton Friedman’s “Capitalism and Freedom” book.

Got any leads? I would consider a finder’s fee for anyone who puts me in contact with a company I buy.

PS: Please do not contact me if you DO NOT HAVE a business plan. As this is the whole point of this thread to begin with.

[rohit_tranzit]

hi ! quick intro....
Rohit Kakde.... BASED in INDIA.... Partner - TRANZIT LOGISTICS.... INTERCITY BUS LINES.... I have just launched a new business... sure do have a business plan... a detailed project report.. its a startup and am looking at investors... have projected balance sheet and cash flow statement with the break-even point.... have done my home work on the sector..

[rohit_tranzit]

hi ! quick intro....
Rohit Kakde.... BASED in INDIA.... Partner - TRANZIT LOGISTICS.... INTERCITY BUS LINES.... I have just launched a new business... sure do have a business plan... a detailed project report.. its a startup and am looking at investors... have projected balance sheet and cash flow statement with the break-even point.... have done my home work on the sector..

cheers

[accounting]

I think you need also a very good lawyer.