AboutBob Rushton Expertise I am a business finance consultant. I arrange funding for business projects around the world. I specialise in cases where the bank has said no,
Experience 20 years in corporate and personal finance,
Expert: Bob Rushton Date: 11/8/2007 Subject: Financing
Question I have to explain my business before I ask the question. I will soon operate a bio-diesel plant that produces 1 million gallons of fuel per year. An average freight truck runs approx. 200000 miles per year at 6mpg, this amounts to roughly 30000 gallons per year. I am able to service about 30 Freight trucks or 3-4 small fleets. The start up cost, which includes materials, plant, etc., is approx. $600K. I have about $50K to my name as I am only 23. how do you suggest I go about obtaining the funds needed? I would like to stay away from borrowing funds from venture capitalist so that I can keep equity in the company.
Thanks
Answer I have broken down your question:~
I have to explain my business before I ask the question.
I will soon operate a bio-diesel plant that produces 1 million gallons of fuel per year.
How? Have you inherited it? Won it in a card game? Can you explain how this will come about?
An average freight truck runs approx. 200000 miles per year at 6mpg, these amounts to roughly 30000 gallons per year. I am able to service about 30 Freight trucks or 3-4 small fleets.
The start up cost, which includes materials, plant, etc., is approx. $600K.
So what you are saying is you hope to operate……?
I have about $50K to my name as I am only 23.
Is this cash or property?
How do you suggest I go about obtaining the funds needed?
There are loads of questions to answer before we get to the how…
I would like to stay away from borrowing funds from venture capitalist so that I can keep equity in the company.
You need to keep an open mined because I suspect you have nothing but an idea, I apologize if I’m wrong. Ventura capital would give you a percentage of something, if indeed it where available.
Answer the following for me to see if we can move forward.
What are you doing right now? Job, education
What have you done in the past? Cv, Job, education , family background.
Have you a business plan?
Have you done 5year cash flow forecasts?
Have you got any orders for the bio diesel?
Have you been to your own bank? What did they say?
Do you know anyone who is operating one of these plants?
