Valuation with no revenue

[jasaunders]

Yep, this is all done. all revenue, cash flow, break-even, balance sheet, sales forceast, ..... is all done with conservative, moderate, and optimistic models. Working with a transactional lawyer now on finalizing the number which is right around 1x first year earnings. Its actually gone up since I started this thread after I changed the way advertising sales will be charged based on conversations with several people at media buying companies.

Starting to meet with potential investors and people who know potential investors this week. Wish me luck!

[akula]

Starting to meet with potential investors and people who know potential investors this week. Wish me luck!

knock em dead son - this is gonna be more a marathon rather than a sprint so pace yourself )

[jasaunders]

Well I'm hoping for a sprint, but expecting a marathon. I have several meetings setup so far, but the biggest one is this Thursday. If I can get the investor on Thursday interested, it could cascade pretty quickly I think.

[akula]

that's cool...you're gonna do great!
what's this for anyway?
are you doing a new startup?

[jasaunders]

Yeah, new startup related to product placements in online video games. It is something unique for an extremely large niche industry that has incredible potential. Problem is, I need to raise over $700,000 and I am trying to retain significant equity by only approaching private investors (at least for now). Assuming I can get the funding and get this off the ground, more details on the project will follow in a few months.

[akula]

Yeah, new startup related to product placements in online video games. It is something unique for an extremely large niche industry that has incredible potential. Problem is, I need to raise over $700,000 and I am trying to retain significant equity by only approaching private investors (at least for now). Assuming I can get the funding and get this off the ground, more details on the project will follow in a few months.

sounds awesome
tell me if you need any transactional/tactical advice etc

[jasaunders]

Will do. Thanks!

[bizboy]

What will the funds be used for?

Sales team, marketing? or ?????????????

[jasaunders]

They will be used for many different things.

[bizboy]

They will be used for many different things.

Interesting, so that would be your response when your pitching to investors?

[jasaunders]

No, but I am not pitching to investors here.

[jck2003]

Good luck mate. Hope it works out for you. Its great to see you are very prepared

[bcedbbsr]

Hey ...anybody can get me some ideas on share market...??????

[cre8ivejg]

Creative Ideas...

1. I write a ton of business plans for new projects and I created a three tier system to validate the financial pro-forma's to offset the fact no existing P&L's are available.. I take the respective 100% operational or income capacity and then tier it down to 85%, 75% and then 65% and my goal is to show that the business can; a. service debts, b. repay the loans/equity payments and c. profit based on worst case scenarios. The feasibility is built in since logically any business with a good plan and management team will do better than 65%.

2. Do your own due-diligence and create a Competition Analysis Report showing what your competitors earn and then step the earnings down for your business while mapping out an increase in income over 3-5 years. This too will show validity on value.

For additional ideas on how to show the value of your business, one of my recent clients is a Business Broker who specializes in this and you can contact him at 816-337-9634 or through his web site at StreamLineDevelopmentGroup . If I can be of any help let me know.

Johnny