Would a business plan help with getting loans and such. Since we don’t buy and sell widgets , what would a typical plan for a investor consist of? Any thoughts
jlsj,
Glad to meet you.
Read your post and it got me to thinking about a business plan I wrote a few years ago and what I was able to do with it.
I had a creative idea and this creative idea could have been for real estate investing just as easily. Only at that time real estate was not on my priority list.
To go on it took me about 2 years to write it and when it was done, I fly into Denver, Colorado and met with an attorney who specialized in Blind Pools. A Blind Pool is where investors put money in to a pool which is controlled by the attorney. True, when the investors put their money in they have no idea what it will be used for and leave it up to the attorney to invest it for them.
I paid the attorney $75K for the pool and received $250K, which was in the pool, not bad for a $75K investment. The attorney felt my idea was good enough to warrant giving me the money.
My plan was to take my idea public, so I hired a SEC attorney, Price Waterhouse as my accountants and set out to find out how to take my idea public on the stock exchange.
Well everything checked out, so I hired a company that would market my stock, they used market makers and their function was to sell my stock to their investors to raise money and of course drive the price of the stock up so I could implement my idea. The company started out on the over the counter exchange and did very well.
My idea was to set up an online gaming website and was the first one to do it.
So my point is yes make your business plan, when you are looking for money it is much easier to get money with a well thought out plan and is impressive to those that are looking to invest. The key is what are you going to offer to these investors so they see a return on their money.
John $Cash$ Locke