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  • #990925
    TPC
    Member
    • Total posts: 6
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    Hi Guys,

    Most of you would know roughly what I’m doing. I am the founder of The Protein Club (theproteinclub.com), 18 years of age, and moving step by step with my enterprise. Now..

    I am 18, and the banks will not offer me a loan over $6000. I had a meeting and this is the max I can get is $6000.

    In my business plan, I have budgeted for $40,000 to start, with $15,000 initial stock and $20,000 investment in marketing with a marketing strategy I have got.

    My initial options which I considered:

    • $40,000 bank loan (But that won’t happen now!)
    • $40,000 in equity for 49% STAKE in The Protein Club
    • Loan from an Investor

    With all 3 options, I have somewhat hit a brick wall. I have already invested quite a bit of money into the business myself and it has come to a point where, to get this off the ground, I feel joining forces with an investor would be my best bet, but is there an option to somehow get the money, and not sell 49% of the company at such an early stage? Investors may not even be interested this early.

    I look forward to hearing your opinions

    Thanks
    Zac

    #1179157
    Craig.Smith
    Member
    • Total posts: 167
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    Are your parents willing to be a guarantor for a business loan if they have available equity?

    #1179158
    Dave Gillen – Former FS Concierge
    Keymaster
    • Total posts: 2,566
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    Hi Zac,

    Is TPC earning you any income yet? Getting some initial members will be crucial for proving to an investor that they’re buying into a business and not just an idea.

    So before you spend $40k (from any source) on stock (that you might not sell) and marketing, get some members anyway you can. Even if it’s stalking people 1 by 1 in gym carparks.

    Here is a great article by Paul Graham that discusses how some huge companies started out this way and why: http://paulgraham.com/ds.html

    Dave

    #1179159
    NickKaro
    Member
    • Total posts: 226
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    TPC, post: 208863 wrote:
    Hi Guys,

    Most of you would know roughly what I’m doing. I am the founder of The Protein Club (theproteinclub.com), 18 years of age, and moving step by step with my enterprise. Now..

    I am 18, and the banks will not offer me a loan over $6000. I had a meeting and this is the max I can get is $6000.

    In my business plan, I have budgeted for $40,000 to start, with $15,000 initial stock and $20,000 investment in marketing with a marketing strategy I have got.

    My initial options which I considered:

    • $40,000 bank loan (But that won’t happen now!)
    • $40,000 in equity for 49% STAKE in The Protein Club
    • Loan from an Investor

    With all 3 options, I have somewhat hit a brick wall. I have already invested quite a bit of money into the business myself and it has come to a point where, to get this off the ground, I feel joining forces with an investor would be my best bet, but is there an option to somehow get the money, and not sell 49% of the company at such an early stage? Investors may not even be interested this early.

    I look forward to hearing your opinions

    Thanks
    Zac

    Zac

    Have you considered crowdfunding? No up-front cost and it might lead to both the cash, marketing/members you need to start strong.

    Consider it a form of pre-selling your memberships in a transparent way – just another option to think about.

    Let me know if you have any questions about the process.

    Regards
    Nick

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