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Funding and Investors (1 Viewer)

glvsav37

Footballguy
Anyone an expert on how to go about looking for funding and investors for a future business? I know you need a business plan, but logistically, where do you start finding investment, seed money beyond Shark Tank and your crazy family member who offers a solid $20 spot and expects an ownership position. 

I local large-scale chain store is going out of business and the location is perfect for an indoor sports facility. I am thinking about inquiring about it, but at a loss where to even start let alone what to target for costs.

(and yes, I know that "if you don't know this already" then you are already f'ed and don't bother) 

 
For something like that, family and friends is really your best bet. You're not chasing VC money for a one store business. 

You really just need to start with coming up with the business plan because without it, you have no idea of what you need, how much you need, when you'll need it, etc. If you have money to kick in yourself and a couple trusted people in on this with you, you may find that you only need a bank loan to get started. 

A potential investor isn't going to be able to tell you what your costs are going to be. And asking for money without knowing that is going to be a waste of time. 

Start at the beginning and take it slow. Identify your overhead and do some research on what your expenses will be for the building, equipment, staff, insurance. Then work the revenue side. If you literally have no idea where to start with some of that, go find some books and get to reading.

A lot of other steps along the way but you have to be willing to put in some effort before chasing investors.

 
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For something like that, family and friends is really your best bet. You're not chasing VC money for a one store business. 

You really just need to start with coming up with the business plan because without it, you have no idea of what you need, how much you need, when you'll need it, etc. If you have money to kick in yourself and a couple trusted people in on this with you, you may find that you only need a bank loan to get started. 
Yeah, I would start with a very clear picture of every single cost (rent, employees, insurance, etc.), how much you are charging, timeframe, will there eventually be other locations, etc etc.

 
For something like that, family and friends is really your best bet. You're not chasing VC money for a one store business. 

You really just need to start with coming up with the business plan because without it, you have no idea of what you need, how much you need, when you'll need it, etc. If you have money to kick in yourself and a couple trusted people in on this with you, you may find that you only need a bank loan to get started. 
true if I was taking over a simple strip mall type store and opening a stationary store

but I wonder if this would need a deeper investment. Its a former very large retail (think wal-mart/target sized) store so there would be a lot of money tied up in converting it to a sports environment with all the equipment—basketball courts, dek hockey rinks, turf, and constructing some structures for locker rooms, snack bar and such.   Each of those playing surfaces could run about $100K each to do right i estimate. Then consider insurance and general operating costs. 

All that would be figured out in the business plan stage, i'm just spitballing numbers. 

 
Well, I’ll be “that guy.”

Don’t do it.

No matter what happens, you are going to be on the hook to pay people back. No one is going to invest in a pre-revenue, pre-profit business with this much risk. It’s just not going to happen. 

For smaller things, you can search for angel investor conferences in your area. These are people with a little dough that want to invest it into startups. It’s usually easier to get money from these guys than from VC’s.

 
Well, I’ll be “that guy.”

Don’t do it.

No matter what happens, you are going to be on the hook to pay people back. No one is going to invest in a pre-revenue, pre-profit business with this much risk. It’s just not going to happen. 

For smaller things, you can search for angel investor conferences in your area. These are people with a little dough that want to invest it into startups. It’s usually easier to get money from these guys than from VC’s.
thanks @kutta. I appreciate and I respect your opinion, FWIR you are well versed in higher levels of business......soooooo wanna invest? lol 

 
There's a lot you can do before looking into funding:

Talk to the owner about much it will be to buy/lease

Talk to construction people on how much to convert

Talk to local high schools/colleges/youth sports if they'd be interested in the facility and how much they'd pay.

If you are in a town without a facility like, bad weather, and a lot of youth sports, you could have something...most high school baseball teams probably have to practise in the basketball gym 5 months out of the year...

If you have all these numbers, and they make sense, then you can go to a bank and say it will cost X and we have committments from Y sports team, for Z dollars, plus whatever we make from private individuals, plus you'd probably have some retail.

 
true if I was taking over a simple strip mall type store and opening a stationary store

but I wonder if this would need a deeper investment. Its a former very large retail (think wal-mart/target sized) store so there would be a lot of money tied up in converting it to a sports environment with all the equipment—basketball courts, dek hockey rinks, turf, and constructing some structures for locker rooms, snack bar and such.   Each of those playing surfaces could run about $100K each to do right i estimate. Then consider insurance and general operating costs. 

All that would be figured out in the business plan stage, i'm just spitballing numbers. 
My point is that the level that you're describing as a "deeper investment", most likely still doesn't meet the level where you would be trying to target the "potential investor" population that you think you may be able to reach. 

"Friends and family" isn't meant to be taken literally. You may have some people you know who can connect you to some wealthier people in their circle that may potentially be willing to invest. Even if you're willing/able to put up a serious stack of cash yourself, you're looking for a needle in the haystack and that's the best way to accomplish it. 

 
Small business administration loan?  But I doubt they will guarantee a loan where the business has yet to start. 

 

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