I have potential investors, but need a business plan
In my efforts to build a basketball gym for my non-profit youth program, I've reached out to several parents who definitely have the money to make this happen. They've asked me for a business plan, however, and I'm not business savvy enough to even know what to say to hire someone to write out one that would please them. What do you think is the best route for me to take?
I was thinking to hire someone to draw up a business plan for me, based on what I have laid out on my site for the project: www (dot) evolved (dot) center. The architect we have attached to the project estimates the potential cost to be a little less than a million dollars. I was thinking of breaking that price up into 20 pieces that can be purchased as one or as multiple. Each piece would then be held for 2 years, and then reimbursed at a rate of $500/month for the next 10 years... resulting in a total of a $60,000 for each $50,000 investment.
The parents have stated they'd only need to make a little on their investment, so I'm wondering if that reimbursement price is too low or too high? Should I label this in terms of interest (or compound interest)? Is there a particular word for this process? How much should I charge the person I hire to write the business plan? I was thinking a flat fee for the service, and then a percentage of whatever ends up being invested. Also, where should I go (online or in the real world) to hire this person?
And lastly, I do have a 20+ business plan I pitched to one of our richest parents that he shot down. It has a ton of info in it, like market feasibility research to employee projections to everything else I stole from templates on the internet. The person hired could use that, conversations with me and the guy who owns the fitness center we're set to build on, and any kinda research needed to draw this up.
Anyways, I know nothing. All I know is if I present something semi-professional, they would jump at the chance to make this into a reality for the sake of their kids. Any help would be greatly appreciated. Thanks!
Thu Jan 28, 2016 1:18 am
oldguy Senior Member
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Assuming that you already have the site, a 25,000sq foot building with high ceilings & roof, and the refrigeration systems to maintain the air - yeah, a million. A pretty ambitious project.
How many supporters are involved? Hopefully it is a large community that will be the end-item users. $1000 each X 1000 people = a million. That is a pretty big youth program!
quote: They've asked me for a business plan,
Just so you know, that is also 'business code' to get you to go away so that they don't have to start writing checks.
Go to 'business plans online', there are several sample plans, templates, etc. Find a Business Major at a near-by college/community college and hire them to write the plan for you. Make it top quality, some renderings, illustrations, floor plans, etc. Glossy/color. And make a jazzy cover and have the books bound.
And get lots of them - one for each attendee at your business plan presentation meeting. Power Point the book for the meeting.
Thu Jan 28, 2016 4:56 am
jonsan32 New Poster
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Thanks for the reply. I definitely get they might be blowing me off, but based on their potential ability to deliver such a huge portion of the necessary funds, I'm willing to take that chance. I could feasibly do this with just 2 of the people, but I'm shooting for 20 just to be safe. So $50,000 per.
Our program has about 150 families, but we're in an extremely wealthy neighborhood. Maybe a dozen millionaires. Is there a job posting site you'd recommend to get someone to write it up? Would a piece of the pie be too much to offer? I really don't think this it's possible to do on my own in any way that would greatly impress.
I really appreciate the assistance.
Thu Jan 28, 2016 5:46 am
oldguy Senior Member
Cash: $ 717.80
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quote: Our program has about 150 families, but we're in an extremely wealthy neighborhood. Maybe a dozen millionaires. I
You may be over-estimating the enthusiasm of the dozen millionaires. They may not feel strongly about basketball. They may be thinking about the utilization factor, ie will the building sit empty for 6 months? How about dual capabilities - can it be switched to an ice skating rink for part of the year? You might look at the ice skating rink in Lake Forest, it is privately owned, no public skating ( I have no idea how it was financed - but I was surprised to learn that it was not public)
And they may be thinking about litigation - if a kid falls and bangs his head, the parents are going to sue the basketball non-profit LLC. As contributors (and deep-pockets) they will be the targets of the lawsuit. Multi-millionaires are sensitive to that - they are often the targets - and they have a lot to lose - large homes, rental homes, college funds, family legacy for grandkids, etc, umbrella liability insurance doesn't cover everything.
Eg, if our neighborhood organized to build a basketball court, I would donate maybe $1000 just to be nice - but basketball for youth is not my thing, kids have so many other things that need to come first. The K12 system here has failed over the past 25 years - very little order, not much math, science, physics, civics. Lots of permissiveness, everyone gets a trophy, wrong answers are not wrong just critical thinking? No playground activity, running & jumping is forbidden, yada. I would pay for a return to the math, physics, reading, that made the USA world class in the 1950s (as opposed to near-last among the 28 industrial nations of world).