how to raise 2 million euro

bigtomw

hi lads

as the title suggests, i know its a large sum of money and am already telling myself theres no way i will be able to come up with that amount,

basically i want to buy a franchise, theres only one other of these franchises in ireland and its great, there very common in sweden and america, anyway the cash is the problem, i have no savings as such but i have a farm valued at about 500,000, I work fulltime, not a great job, bout 30,000 a year, and i am pretty sure the banks would laugh at me if i went to them, oh and by the way ii have no debts i recently managed to clear all my loans,

has anyone ever managed to raise such a large amount from pretty much nothing before

chillin117

It must be Ikea ? I did not think they were franchise ? One in the midlands would do well judging by the Reg Nos on the cars in Ballymun. I wish you well

Water John

It is an extraordinary amount for a franchise.

Just the principle of a franchise is that it makes entry into a business more reasonable financially and quite a bit more secure.

At that size, I think you need a few high net worth individuals or private funding rather than chasing banks. Even regular businesses are going this route much more.

If you want to go this route you need to build a prospectus. With rates available from most deposit accounts there are people looking to put some of their money into viable business. Thus the prospectus must show the viability of the enterprise, plus your match to that business. You will have to also put in significant funds your self possibly, to show your personal commitment.

bigtomw

chillin117 wrote: »

It must be Ikea ? I did not think they were franchise ? One in the midlands would do well judging by the Reg Nos on the cars in Ballymun. I wish you well

haha no its not ikea,

Speedwell

bigtomw wrote: »

haha no its not ikea,

well darn it, I wish it was Ikea.

jimmii

chillin117 wrote: »

It must be Ikea ? I did not think they were franchise ? One in the midlands would do well judging by the Reg Nos on the cars in Ballymun. I wish you well

The 2m tag certainly narrows it down alright! They have a bit more info on the system on their site http://www.ikea.com/ms/en_JP/customer_service/faq/help/about_ikea/ikea_group.html

Either they have the best training or I'm guessing it's a franchise where you're making next to no decisions.

jimmii

bigtomw wrote: »

haha no its not ikea,

Curious! If you can't raise the money yourself then you're going to have to give up some equity unless you can borrow from friends/family. Do you think the money is the only reason there is only one? Why do you think someone should give you 1.5+ to start it up?

Water John

Funny thing is, when you have the €2M going into a business, its actually not a massive amount of capital. Only when you don't have it.
any one involved in the renewable energy business would usually see an 80/20 borrowing v cash. Even small projects, 5Mw, are in the €6/7M investment scale.

Don't know if EII funding could be availed of for what you are interested in, doubtful, but it is a good source.
Also SBCI banking funds.

VincePP

If you are currently earning 30k a years it would suggest that you do not have much business management experience yet. You need to be at least managing a business in the field you are looking at for a couple of years before anyone will take you seriously.

Running a business, even a franchise is not easy and at a cost of €2m, it would suggest that annual turnover would be in the multiple of millions and for that you need a very strong business set-up behind you.

Also to come on boards, good as it is, looking for advice, would raise red flags. Someone looking at that amount of money would already have experienced accountants at hand and a knowledge of how to pitch for funds.

Also, just because a franchise works well in one place does not mean it transfers well to another.


One final piece of advice - never gamble your home or any long held family asset on a business. Banks are vultures when it comes to getting their money back if things go wrong and will not care one jot about anything else. And if you are ever signing a guarantee for anything, always limit it to a finite amount tha you ca afford to lose

VincePP

Water John wrote: »

any one involved in the renewable energy business would usually see an 80/20 borrowing v cash. Even small projects, 5Mw, are in the €6/7M investment scale.

Renewable enery have government guaranteed energy purchase contracts so risk is very small and therefore that can tap into pension funds.

Water John

Vince I accept PPA apply to RE but the level I talk about are not funded by pension funds.
Neither would the client have previous experience.

I wasn't using Re as a direct comparison. Merely indicating the scale of finance is not huge. It just looks very big when you start looking for it.
As jim says, why should a bank or anyone for that matter risk their money if either you don't have the skills needed or have not built a team around you with it.
I think, in this case, you need to share the business with others.
A % of something is much better than 100% of nothing.

Ogogo

chillin117 wrote: »

It must be Ikea ? I did not think they were franchise ? One in the midlands would do well judging by the Reg Nos on the cars in Ballymun. I wish you well

I am guessing that IKEA would probably cost you closer to €50M + to setup a new shop...

Bandara

€2 mil isn't a huge amount by any means for a franchise setup

5 Guys first unit in Dublin is costing them over a million euro rent before fitout !

Hanley

Bandara wrote: »

€2 mil isn't a huge amount by any means for a franchise setup

5 Guys first unit in Dublin is costing them over a million euro rent before fitout !

That place is gonna be an absolute cash cow for the first 2-3 years anyway.

Jammy buggers!

Water John

I say fair play to you Tom for your ambition. So many look at finding a job as their objective when in fact they often have a skill set quite well able to run a business for themselves and their family. They underestimate themselves.
A franchise is a good option for many.

pedroeibar1

Water John wrote: »

I say fair play to you Tom for your ambition. So many look at finding a job as their objective when in fact they often have a skill set quite well able to run a business for themselves and their family. They underestimate themselves.

Poor advice. There is a big difference between realistic ambition and Mittyland. The OP has no idea, no savings, no hope of raising that amount, no indication of repayment ability, no conception that security is the last thing looked at by most lenders.

The 5 Guys people already have shown considerable success with several ventures (some in a similar sector) in addition to a track record in finance and a rather large cash pool behind them!

Stupid thread that brings the forum back a step (or several).

ironclaw

Bandara wrote: »

€2 mil isn't a huge amount by any means for a franchise setup

5 Guys first unit in Dublin is costing them over a million euro rent before fitout !

Wasn't the Irish operation invested in by the Supermac's founder?

DubTony

ironclaw wrote: »

Wasn't the Irish operation invested in by the Supermac's founder?

I understood it to be Dermot Desmond's sons, so investor's not needed ... probably.

VincePP

DubTony wrote: »

I understood it to be Dermot Desmond's sons, so investor's not needed ... probably.

spare change for DD. - Something to keep the kids happy sort of money for him.

pedroeibar1

Boat ownership - if you have to ask how much it costs you cannot afford it.
Raising €2m - if you have to ask how, you cannot succeed.

pedroeibar1

VincePP wrote: »

spare change for DD. - Something to keep the kids happy sort of money for him.

Actually no. They do stuff on their own, and very successfully too.

OP - you have posted elsewhere about the possibility of selling you farm and (buying rental property, moving to Australia), building a windfarm, planting forestry.

If you are to do anything like this take advice from someone who isn't trying to sell you something.

petethedrummer

https://www.youtube.com/watch?v=KaZuBziWLgk

neris

If you need to come onto a forum like this to ask how to raise money to set up any business dont go into business and stop dreaming