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Where to find start-up funding for a new concept
Rank: New-farer Joined: 5/14/2013 Posts: 12
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Hi,
Recently I wrote a proposal for an interesting idea, if realized, it would be the first time this would be done in East Africa. I sent the proposal to banks and Insurance houses of which 2 banks and 2 insurance houses were quite keen to partner, but only once the biz is running. Unfortunately I don’t have the money, just the idea. My new strategy is to find individual investors who may be interested, but I lack good contacts. Would you please direct me in the right direction on how I can raise funds for this project?
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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In which sector is this business?What will it achieve that has not been done before?
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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@Chaka: Sector is automobile. As for the 2nd question, pardon me for not wanting to display it on here.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Obar1 wrote:@Chaka: Sector is automobile. As for the 2nd question, pardon me for not wanting to display it on here. How much/many capital/partners? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Obar1 wrote:@Chaka: Sector is automobile. As for the 2nd question, pardon me for not wanting to display it on here. If I get you right,this has been done elsewhere except not in EA?How will potential investors get to know what this is about so that you can partner with them?
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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@Chaka, true, it has been done elsewhere but not in EA, in addition, I have added other aspects to it. For potential investors, I will be happy to share the proposal on the condition that they sign an NDA.
@Jerry: I would prefer no more than 2 partners but I remain open if there is more than 2.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Obar1,
Whats the startup capital needed?
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable).
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). Those figures are too high considering you do not have a single client and those directors allowances . Free advice .Not a single investor will sink even a cent in this project from that summary seasoned investors will tell you it looks unrealistic....
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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@Madollar: Your sincere comment is noted with thanks, but I stick to those figures.
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). You are sure it has to start with such high figures?
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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Obar1 wrote:@Madollar: Your sincere comment is noted with thanks, but I stick to those figures. You can build a prototype and offer it for free to potential clients for a short duration and gauge the uptake.if uptake is good some investors may be willing to listen. you may also realise you do not need them...
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Rank: Member Joined: 2/12/2010 Posts: 474 Location: Nairobi
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Do you have any patent? Have you done business before? What role will you play in the business? Are you willing to sell the idea to someone? Please watch sharktank. You will get great tips. Keep it simple
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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@washiku: I have to say that it is partly my fault for not being able to avail the full concept details on here for Wazuans to picture it, but to answer you, the biz aims to take away the bulk of trade from the city car bazaars, not leaving out the Sunday Car bazaar. The used car market in Kenya is huge and the figures posted above is merely a drop in the ocean. In addition, we consulted widely during the proposal development process so I remain confident in all its content.
@madollar: This business doesn’t require a prototype so no need to build one, it’s a sales thing.
@richdad: Many thanks, unfortunately not patentable but several aspects of it can be trademarked. I have watched Dragon’s Den, UKs equivalent and that is what motivated my pursuit for TM, I am just starting the process now. I have been in used car sales for 8 years. I will be a Director (one of) in the biz and unfortunately I can’t sell the idea.
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Rank: Elder Joined: 6/21/2008 Posts: 2,490
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Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). Investing 50M and making a net profit of 71M in the first year is unrealistic - unless you are opening a "Pharmacy" The man who marries a beautiful woman, and the farmer who grows corn by the roadside have the same problem
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Obar1,
What I am wondering is this:
If your business was to take off,what would its impact be on the traditional car dealers i.e open air show rooms and bazaars?If their business was to be greatly impacted,do you think they will just sit by and watch..?
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Rank: Member Joined: 4/26/2011 Posts: 759
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Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). I have worked with start-ups before, and I will tell you one thing, you probably need to polish your language alot. First 50M in 3-4 months sound worst than 50M innitial investment, it is like you are asking someone for 20m and coming back 40 days later and asking for another 20m it sound shady! Secondly, I noticed that all your projected revenue ends with an odd number, someone like me will look at it and the first thing that will come to my mind would be, are the numbers mathematically backed or is he trying to look like he actually did some math? Thirdly, Director allowances? kidding me? you haven't even made a single revenue, why are you even thinking of paying yourself? There is nothing wrong with 342M salary in 3 yrs if your are generating that much revenue but there is a better way to present that without coming out as delusional. Start-ups and investors usually negotiate on ownership percentages and the profile will probably flow based on the percentage of ownership, you? you just wanna be paid KES 342M, not even KES 340M. What you are saying in simple terms is "Give me your money and I will go spend part of it to pay myself" It is crazy if not stupid. One more advise, have someone else look at your idea because sometime people just think too hard and start beleive on their shit too much. Goodluck out there.
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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Rollout wrote:Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). I have worked with start-ups before, and I will tell you one thing, you probably need to polish your language alot. First 50M in 3-4 months sound worst than 50M innitial investment, it is like you are asking someone for 20m and coming back 40 days later and asking for another 20m it sound shady! Secondly, I noticed that all your projected revenue ends with an odd number, someone like me will look at it and the first thing that will come to my mind would be, are the numbers mathematically backed or is he trying to look like he actually did some math? Thirdly, Director allowances? kidding me? you haven't even made a single revenue, why are you even thinking of paying yourself? There is nothing wrong with 342M salary in 3 yrs if your are generating that much revenue but there is a better way to present that without coming out as delusional. Start-ups and investors usually negotiate on ownership percentages and the profile will probably flow based on the percentage of ownership, you? you just wanna be paid KES 342M, not even KES 340M. What you are saying in simple terms is "Give me your money and I will go spend part of it to pay myself" It is crazy if not stupid. One more advise, have someone else look at your idea because sometime people just think too hard and start beleive on their shit too much. Goodluck out there. inaitwa 8-4-4 embakasi style History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Member Joined: 8/16/2012 Posts: 660
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Obar1 wrote:Hi,
Recently I wrote a proposal for an interesting idea, if realized, it would be the first time this would be done in East Africa. I sent the proposal to banks and Insurance houses of which 2 banks and 2 insurance houses were quite keen to partner, but only once the biz is running. Unfortunately I don’t have the money, just the idea. My new strategy is to find individual investors who may be interested, but I lack good contacts. Would you please direct me in the right direction on how I can raise funds for this project?
Obar1 wrote:@Chaka: Circa KES 50M, to be injected gradually over 3-4 months, the bulk of which, will go to Marketing. Forecasted Net profit as follows,having taken away Director's allowances:
YR1 - KES 71m
YR2 - KES 199m
YR3 - KES 249M
Director's Allowances over the 3 years total KES 342M (taxable). Hello @Obar1, You are just in time today for Mwalimu @Marty's lesson. Don't forget the notebook. Quote:Don't fall victim to your own Bullcrap
I am sure you have met those people who are all talk and no action. People with big plans but that always amount to building castles in the air. Dreaming grandiose dreams with no further actions.
Impress with actions not conversations. Endorse your business enthusiastically, yet tastefully. Avoid exaggerating truths and touting far reaching goals as certainties. In short, put up or shut up.
Felix Dennis once said “Once you believe that you are infallible, that success will automatically lead to more success, and that you have "got it made," reality will be sure to give you a rude wake-up call. Believing your own bullshit is always a perilous activity, but never more fatal than for the owner of a start-up venture.” Here: The power of financial educationPick the sitting position nearest to the board. Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: New-farer Joined: 5/14/2013 Posts: 12
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All your comments are taken in well. Let me learn from you(s).
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