Success in getting VC/private investor money?

**digitaldeath** · 07-10-2018, 04:24 PM

get financing from velocity motors

**Whiteroom_Guardian** · 07-10-2018, 04:29 PM

I have a house and I owe about 2/3 of it's current value. I have basically nothing else liquid. Any investments I have right now I won't liquify for at least another year or two.

Credit is in the 700s.

I know things are turning around at banks, but to do this right I would probabaly need like 750-1M. Don't really see a bank giving me that much. Already tried the family route.

About a year ago I made a bunch of phone calls. No one wanted to sell. Honestly, the one "real" operating location in this town is on a small lot with too short of a building. They do business simply because they are the only game in town, but the service is sub par really.

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**reckless toboggan** · 07-10-2018, 04:36 PM

Whoever you pitch to, be sure to use the words "disruptive" and "influencer" over and over again.

Also, you'll need a hashtag. If you don't have a hashtag yet, then you've already failed.

**neufox47** · 07-10-2018, 05:02 PM

Originally Posted by Whiteroom_Guardian

I have a house and I owe about 2/3 of it's current value. I have basically nothing else liquid. Any investments I have right now I won't liquify for at least another year or two.

Credit is in the 700s.

I know things are turning around at banks, but to do this right I would probabaly need like 750-1M. Don't really see a bank giving me that much. Already tried the family route.

About a year ago I made a bunch of phone calls. No one wanted to sell. Honestly, the one "real" operating location in this town is on a small lot with too short of a building. They do business simply because they are the only game in town, but the service is sub par really.

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First step is a business plan. Like an official, detailed, 1-3 year business plan. This is my rent cost, equipment, payroll, etc. I’m going to hire X number of people and the labor market means I will pay them Y.

If you get past the elevator pitch any investor is going to want a business plan. Also, for this type of business they are going to want to know how you are going to track sales and cash. One of the biggest risks here for an investor is you skim off the top.

You need $1M to start a car detailing business? Are you sure?

**Whiteroom_Guardian** · 07-10-2018, 05:05 PM

Not a car detailing business. You are right though. I definitely need a legit business plan with many of the numbers already figured out.

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**mcski** · 07-10-2018, 05:11 PM

Call Shark Tank

**PNWbrit** · 07-10-2018, 05:13 PM

Originally Posted by Whiteroom_Guardian

Not a car detailing business. You are right though. I definitely need a legit business plan with many of the numbers already figured out.

Print this thread.. should be enough.

**Whiteroom_Guardian** · 07-10-2018, 05:14 PM

Originally Posted by mcski

Call Shark Tank

They were actually the keynote speakers at the 2017 convention lol.

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**babybear** · 07-10-2018, 05:45 PM

fwiw I would say being a current/prior business owner you are well qualified to do a lot. Leverage your experience when trying to get the loan/ investors
Smaller/ local sized banks are more likely to give you a loan vs your national bank too
We have some cool young professional/ entrepreneurial groups in our town that are nice to get with like-minded folks and bounce ideas and experiences off each other.
Can't recall if you are Bozeman or closer to BS but bozeman area should have some groups to potentially join or at least attend gatherings to get the lay of the land since you are newer to that area and also just get in that mode mentally

**Whiteroom_Guardian** · 07-10-2018, 08:34 PM

Originally Posted by b-bear

fwiw I would say being a current/prior business owner you are well qualified to do a lot. Leverage your experience when trying to get the loan/ investors
Smaller/ local sized banks are more likely to give you a loan vs your national bank too
We have some cool young professional/ entrepreneurial groups in our town that are nice to get with like-minded folks and bounce ideas and experiences off each other.
Can't recall if you are Bozeman or closer to BS but bozeman area should have some groups to potentially join or at least attend gatherings to get the lay of the land since you are newer to that area and also just get in that mode mentally

Good to know. Thanks. My experience as an operations manager of a 14 location chain certainly qualifies me to run one shop I would think.

**Cono Este** · 07-10-2018, 08:49 PM

I know a guy who was into fancy sporting apparel, it took off, Gore Tex or someone bought half and when his first inventory problem hit his family/friend investors panicked and he had to sell the half to the gore Tech leeches. Now he does all the work and owns 1%.

Be careful what you wish for, investors are not your friends.

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**babybear** · 07-10-2018, 08:56 PM

Originally Posted by Cono Este

Be careful what you wish for, investors are not your friends.

yea they get all up in your sh*t. didnt mention prior but preference to having it be your own loan/ money bc investors add a huge component
I think you'll kill it- you already get it. just bringing to a new market, which seems like an appropriate challenge. you can doo it

**muted** · 07-10-2018, 09:01 PM

Originally Posted by alias_rice

If you’re stuck in a fire and I’m your only help, you’re downright fucked. Must be someone else.

What if I'm about to sign papers for a loan, what would my odds be then? 50?

Thanks, I may have questions later. Maybe I need a good article and not a book if it's that simple, I'll google it.

**MultiVerse** · 07-10-2018, 09:04 PM

Originally Posted by Cono Este

I know a guy who was into fancy sporting apparel, it took off, Gore Tex or someone bought half and when his first inventory problem hit his family/friend investors panicked and he had to sell the half to the gore Tech leeches. Now he does all the work and owns 1%.

Be careful what you wish for, investors are not your friends.

Yeah, VCs enact things like drag-along clauses which given them a lot of power over ordinary founder/employee shareholders.

**Hott Butt Mud** · 07-10-2018, 09:18 PM

You want success?

Can you invent, or install, a spray gun that does not require ANY arm strength to use? This has to be the #1 thing that is limiting your market. Imagine a 60 y/o little lady who really wants to be able to roll in to a self-serve car wash and spray some soap and water on her car, but just can't quite spend more than 30 seconds squeezing the trigger on the spray gun..... make it a button or some kind of EZ pull lever and you've just increased your target audience!

**Micol** · 07-10-2018, 10:00 PM

Originally Posted by Cono Este

I know a guy who was into fancy sporting apparel, it took off, Gore Tex or someone bought half and when his first inventory problem hit his family/friend investors panicked and he had to sell the half to the gore Tech leeches. Now he does all the work and owns 1%.

Be careful what you wish for, investors are not your friends.

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interesting.... can you share the brand's name?
or confidential......

?

**MakersTeleMark** · 07-10-2018, 10:15 PM

Originally Posted by MiCol

interesting.... can you share the brand's name?
or confidential......

?

Perhaps a Gregory, or an Eddy, or a Dana, or any number of sellouts.

Tell me about these new digs.

**Micol** · 07-10-2018, 10:50 PM

Originally Posted by MakersTeleMark

Perhaps a Gregory, or an Eddy, or a Dana, or any number of sellouts.

Tell me about these new digs.

park county...but that did not last too close to 285 so im in the middle of montana at the moment working from an old class c

285 like an endless dangerous tailgating dragon, too afraid was going to get hit on the bike too

**MakersTeleMark** · 07-10-2018, 10:51 PM

Originally Posted by MiCol

park county...but that did not last too close to 285 so im in the middle of montana at the moment

I hear they need a carwash.

**TBS** · 07-10-2018, 10:56 PM

Originally Posted by shredgnar

Crowdfund it! Or go to the bank. Do you have a house or any other collateral? Liquid funds for down payments etc?

Think about creating some collateral through crowdsourcing. Sell a subscription - one year unlimited car washes for some reasonable up-front price. Your marginal cost of one wash has to be low. Target market are folks like realtors and sales types who need a clean car for shuttling clients. Besides creating equity it helps to prove the market size when you go for a 7(a) loan like alias-rice brought up. This is an asset play, not an equity play.

I have a friend who opened up a restaurant/brewery with 30 something investors. He was just desperate to see his dream through. DON"T DO THAT!! Been a nightmare for all parties involved.

Yup, it’s like backcountry skiing - the risks/headaches go up exponentially once you get more than three or four money partners. And never more than 11 - look what happened to Jesus.

**Micol** · 07-10-2018, 10:57 PM

Originally Posted by MakersTeleMark

I hear they need a carwash.

ha, been talking with him

**MakersTeleMark** · 07-10-2018, 11:09 PM

Originally Posted by MiCol

ha, been talking with him

Gotta keep that merc clean yo.

**Micol** · 07-10-2018, 11:19 PM

Originally Posted by MakersTeleMark

Gotta keep that merc clean yo.

thats gone...back to drivin a truc
gone from those condo thugs too

**Cono Este** · 07-11-2018, 05:07 AM

Originally Posted by MiCol

interesting.... can you share the brand's name?
or confidential......

?

I’m being intentionally vague.

.

Sometimes when a VC firm, or a big company sees a good thing, they get their hooks in you because they know you’re going to make the usual mistakes, come back for more, and it’s then when they come in and capitalize on it and drive you out.

Business is brutal.

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