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Am I crazy asking this amount of money?

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I am preparing a Financial Projections sheet for my startup investment.
I am not sure that I will give all the details required but I will be alerted to answer any clarifications quickly.

My first year projection shows

- 1.4m in revenue
- 540k in cost
- that gives 860k thousands net income.

I want to request 300k funding. This money will allow my business to cover all costs until being profitable.

How do I know if my calculations are logical, or whether I will sound crazy?

Thank you very much.
>>
>>1501551

Well show us how you got the numbers
>>
>>1501551
Your math isn't going to matter nearly as much as your experience running businesses in your field.

if this is your first time running a business you're going to sound bad no matter what. The bank or VC isn't just investing in your idea, you're asking them to invest in you and your ability to make money.

if you've never done it before it probably won't matter how good your idea is or how optimistic your projections are.
>>
>>1501560
does it really matter? because i think IRR and NPV can be calculated without knowing anything else...
>>
Try talking to a bank. Usually they won't give you the money if the numbers don't add up.
>>
>>1501562
thanks for your valuable information. To be honest this is not a VC thing, so things will be easier to get thourgh. But let me know, if you were in my position, how would you calculate your amount of funding?
What I did is to calculate all my costs, made assumptions on sales, and I found out that 300k is the money that need to have net income.
Of course, since I have no sales, I can not evaluate this idea in terms of money. Or can I?
>>
>>1501566

>made assumptions on sales

Elaborate.
>>
>>1501568
with "assumptions" I mean I found the industry's average cost per acquisition.
>>
>>1501551
1) have a couple of protype tested
2) Proof there is demand and a market
3) invest 50-75% of the production funding needed
4) Go to investors for the remaining 25% AND investors who are able to help w. sales
???
Profit
>>
>>1501606
Shouldn't you have something like a actual survey or expression of interest (ya know depending if your customer is consumers or B2B).

Or at the very least a breakdown of the current market, and how much market you think you can realistically capture year by year based on what sales and marketing resources you'll have at your disposal?
>>
>>1501564
>does it really matter?
No, it doesn't matter unless you actually want to get a useful answer from any of us...
>>
>>1501564
>does it really matter? because i think IRR and NPV can be calculated without knowing anything else...
You don't know what you're doing, do you?
>>
>>1501827
no, not exactly
>>
You could always start off really small and generate some interest in your product through social media and try to get a few sales so you have some growth to show.
Thread posts: 14
Thread images: 1


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