Need Ideas/Advise, a little long winded, LOL

[dgvito]

Hello all,

New here today, very nice forum, I need advice, ideas perhaps direction. I am looking at a possible purchase of a business I have been involved with for 9 years. It is brick and mortar retail, a total investment of 1.5 million would be required which would include Real estate, inventory, all equipment and fixtures and building a new larger facility.

What I have going for me:

1. 25 years experience, 9 years running the current business.
2. Great location, major intersection with 24,000 cars per day traffic count.
3. Strong customer base, heavy repeat and referral business.
4. Cash flow positive business plan and Prior P&L statements.
5. Desire and a winning attitude.
6. A boss wanting a career change.

What I lack:

1. Credit rating, FICO in the mid 600’s but limited file.
2. Cash, worked the last 9 years for an opportunity at partnership, made the boss wealthy now he wants out.
3. Business savvy, see above.
4. Ideas on how to attract investors, presenting to investors, talking intelligently to investors.

Ok on to my ideas, providing I could land a 1.5 million, the new facility would attract new customers and allow for additional employees. The investors’ money would be secured by Real Estate, current value about 600,000.00, not including the new facility, and Inventory current wholesale value about $450,000.00 leaving about $150,000.00 unsecured.

Now my Insane Idea is to use Richard Branson’s company Virgin Money to process 15 individual loans of $100,000.00 amortized for 20 years, interest only with no payouts for the first year at 7.5%.

The business has a 9 year average gross profit of $34,000.00 per month and under my management expenses would be 20,000.00. This does not include an anticipated increase in business.

The business people in my area can only think in the box and a small one at that. The Entrepreneurs, Angel investors, and VC’s I follow and have chatted with seem only interested in technology and finding the next Google and that’s fine for them.




So here is where I need advise, I’m trying to think outside the box but may be a little too far outside.

1. Are there individual people in this country that would invest in a safe venture for a return just a touch over prime?
2. Are the terms of the loan unreasonable, including percentage rate 7.5%, Term, money tied up for 20 years and making no repayment for the first year?
3. I live a very simple life no big house, fancy cars, expensive clothes or jewelry, not that it’s bad, but how do I overcome the lack of “dressed for success” that so many want to see, where do I find the people that have the ability to see the burning desire I have to succeed.

To date the only things I’ve come across are the people who tell me I can’t do it, they motivate me.

The people who suggest I start a competing business and rent property and they will loan money for inventory at 15%, they don’t understand the blood sweat and tears that went into what I have already done here and how many times we nearly went BK, Not to mention that the numbers just would not work.

The people that want to buy the company and have me run it for them, see above, they get wealthy I get nothing but pay cuts when they struggle; I’m not doing that again.

The people that want to charge me a fee for mostly useless information.

I know there is a lot of knowledge out here on the Web, help me if you can.

TIA,
dgvito

P.S. My plan would allow a max of 9% instead of 7.5 but would raise the risk, anything over that and one Blip could destroy me.

[BusinessAdviser]

I voted for "dgvito is just Nuts." Why? Because you came here needing "ideas/advise" (though it should read "ideas/adviCe") but did not give a shred of information regarding your business. I don't have the time to elaborate, as I have already wasted more than enough reading through your post LOOKING for information about your business.

[akula]

i don't understand what you're asking

[rogercbryan]

I'm just going to answer your questions:
1- It's hard to get banks to loan a touch over prime with a credit score in the 600's. Not that it is a terrible score. But you are looking for a lot of money.
2- Yes, they are unreasonable. A one year grace period does not exist in the normal lending industry. The rate you are looking for is well below the market rate for your type of business loan. At best you may be looking at 10% to 15%.
3- The 'dressed for success' line is BS in my opinion. Yes a nice suit is great for meetings, but I'm more impressed with someone who has solid P/L statements then the guy who pulls up in a Mercedes SL500 and asks to borrow money.

What is my advice? Try to get the owner to self finance the company. I don't want to burst your bubble, but with the information you have given you don't look like you'll be able to raise the money. People want assets and/or experience in someone before they lend that kind of money.

We all at some point in our lives realize we have spent years making someone else rich (unfortunately). Now that you have realized that try something a little smaller and grow into your potential. This company has way to high of a financial burden to be your first go at your own company.

[dgvito]

Jonathan,

Strange that I actually expected that response from you based on other comments you have made to others, are you an admin here?.

The bottom line is that it does not matter what the business is. My Job is to Buy inventory, Sell Inventory and Buy more inventory. The fact that I misspelled a word pissed you off tells me that you are an arrogant Mercedes SL500 driving Boss or a banker. Please don’t waste any more of “your” precious time reading my mis-spelled words.

You are correct in voting me Nuts, Why? 1st Because I may be, 2nd Because I have a dream and the desire to make it real and most people, including you, don’t get it. I just came here looking for some advice on how I might do a better job at attracting investors.

[dgvito]

Jonathan,

Strange that I actually expected that response from you based on other comments you have made to others, are you an admin here?.

The bottom line is that it does not matter what the business is. My Job is to Buy inventory, Sell Inventory and Buy more inventory. The fact that I misspelled a word pissed you off tells me that you are an arrogant Mercedes SL500 driving Boss or a banker. Please don’t waste any more of “your” precious time reading my mis-spelled words.

You are correct in voting me Nuts, Why? 1st Because I may be, 2nd Because I have a dream and the desire to make it real and most people, including you, don’t get it. I just came here looking for some advice on how I might do a better job at attracting investors.

[dgvito]

Rogercbryan,

Thanks for the reply,

1. I am not looking for a bank to do this and yes it is a lot of money.
2. You are correct a 1 year grace period does not exist in the normal lending industry, just trying to think outside the box.
3. No BS on the dressed for success, I agree on the nice suit is required but guess what the seller/boss has, the Benz.

Your advice on the owner self finance is great but he won’t or can’t do it, he will rent the property to me at an unreasonable rate however. As far as bursting my bubble, it could not be more deflated, LOL. In the event that I could raise the money to pull this off I would have assets.

Your last comment is an irritation to me, I have already done that, started off small. I did all the hard work of starting a business to watch the owner piss it away, The company that I want has zero financial burden just an owner that can’t keep his hand out of the cookie jar.

Business is War? Take no prisoners? Give no second chances? A concept I need to think about.

Thanks for taking your valuable time,

dgvito

[BusinessAdviser]

Jonathan,

Strange that I actually expected that response from you based on other comments you have made to others, are you an admin here?.

The bottom line is that it does not matter what the business is. My Job is to Buy inventory, Sell Inventory and Buy more inventory. The fact that I misspelled a word pissed you off tells me that you are an arrogant Mercedes SL500 driving Boss or a banker. Please don’t waste any more of “your” precious time reading my mis-spelled words.

You are correct in voting me Nuts, Why? 1st Because I may be, 2nd Because I have a dream and the desire to make it real and most people, including you, don’t get it. I just came here looking for some advice on how I might do a better job at attracting investors.

Am I an Admin here? No. I am interested to know why my response caused you to conclude that I might be an Admin.

The more information that you provide, the more and better advice that others can provide. That is why I asked you to provide more information.

The fact that you misspelled a word did not piss me off. Rather, I was simply correcting you to help you out. I am a firm believer that it is important to conduct yourself professionally when dealing in professional matters. If someone comes to me with a business plan full of spelling and grammatical errors, I will conclude that they do not take the business plan seriously.

Am I an arrogant Mercedes SL500 driving Boss or a banker?! Lol. The farthest thing from it. That is a problem that you can run into when you try to stereotype.

I understand that you "just came here looking for some advice on how you might do a better job at attracting investors," and that is all that I am trying to do.

Do you want to try again?