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03 - Raising Capital Funding Options for Small Businesses

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  #1  
Old 05-11-2006, 07:50 PM
Hemponics Hemponics is offline
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Default Investor/Partner For Hemp Start-Up

Hi Everyone! I’m new to this forum, but seeing other people in my situation post here made think it would help if I did too. I have invented and patented a revolutionary new technology for a hemp based grow medium for the all natural grower and called it Hemponics which combines hemp and hydroponics. It is similar to another grow medium on the market made out of coconut fiber but we feel a medium made from hemp fiber is much more exciting and interesting and would work even better! Hemp is a major industrial cash crop for countries such as Canada and China. Hemp is the strongest natural fiber on earth and can be found in several products on the market today such as hemp candles, hemp clothing, hempseed food, hemp lotion, hemp soap, hemp chap stick, etc. The list goes on and on because hemp is so versatile and can be used anywhere cotton or cottonseed oil is used. Hemp is grown annually, planted in spring and harvested in autumn. As the hemp is harvested the hemp leaves fall into the soil to renew and enrich it with nutrients so the soil is ready to be planted with more hemp right after harvest which is great for the environment.

We have made our first sample batch of our product and tested it out on some plants and we found that our Hemponics grow medium fosters faster, stronger, healthier root growth. We found that it is PH balanced (6.0) and contains trace essential nutrients needed for healthy plant growth. Hemponics grow medium is affordable, 100% biodegradable, and completely environmentally safe. The organic grower can be assured that the hemp in our grow medium was grown without the use of any pesticides, chemicals, or fertilizer as hemp naturally repels mold, bacteria, and insects. Hemponics can be utilized indoors or outdoors in any type of garden. It can be used as a mulch, soil moistener, rooting medium, or hydroponic medium. Industrial hemp products like ours are legal and contain 0% THC.

This product is awesome and we have already approached several hydroponic stores and organic growers who are trying out our product on their own gardens as we speak. The only catch is our product has been so popular that we have already run out of our first sample batch and we’re in need of funding for our next batch. We are seeking investors and we are only trying to raise a minimum of $10,000 so we can continue filling orders. Any interested potential investor is encouraged to contact us for our full business plan, brochure, business cards, and projected budget. Any investor willing to work with us can look forward to a percentage of the company, a percentage of sales profit, and double their money returned in three years. We are ready and set up to begin bringing in money and making profit off orders and putting most of that money back into the company once we get our initial investment. We have a secure supplier, manufacturer, and growing customer base. The people running this company, myself included, have been a part of the hemp industry for several years and have extensive experience with growing all kinds of plants organically and with running a company from every angle. We know this grow medium will explode with success if we could only afford to purchase more product from our supplier and pay for our manufacturing for another batch of our product. If there is anyone out there who has any advice, can point us in the right direction, wants more information, or can help in any way we would greatly appreciate all the help we can get!
Thank you so much for listening and I hope to get responses soon. =)
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  #2  
Old 05-12-2006, 04:35 AM
Toolman Toolman is offline
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Default Yes, I am sure that they are all making rope

I am sure that most people who are interested in this product are using hemp for candles, oil, or even ROPE!

I think that you will have a difficult time attracting legitimate investors for this project. Just my oppinion.
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  #3  
Old 05-12-2006, 03:08 PM
Hemponics Hemponics is offline
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I know it will be hard. Thats why I'm here. I mean if someone can get porn financed then why should hemp be all that much harder. Does anyone have any advice?
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  #4  
Old 05-12-2006, 03:40 PM
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Coach Morse Coach Morse is offline
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Somebody please correct me if I'm wrong, but I thought this category was for people to get advice on how to obtain funding, financing, raise capital, etc... Not to solicit forum members for direct investment.

Having said that, Hemponics, I think you should be able to scare up $10,000 on your own quite easily, for example a home equity line of credit, credit card, business line of credit, bank loan, small business loan from a non-bank lender or apply for an SBA loan. Or see if you can work out a trade with your supplier.

Good luck!
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Old 05-16-2006, 06:05 PM
Hemponics Hemponics is offline
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I'd have to own a home to get a home equity line of credit, and have no credit to speak of (meaning I haven't the need for credit until now.) I would contact the SBA, but would they loan money to someone without credit? I am here for advice and can use all that this place has to offer. I'm to the point of sitting outside office buildings in a suit with the sign "Looking for Investors."
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Old 05-16-2006, 07:07 PM
Toolman Toolman is offline
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Bruce Williams once said on the radio that start up money for some businesses has to come from "somebody who loves you."

People are very hesitant to invest in an un-proven operation without a very strong potential for gain.

Perhaps you have a family member who would make the investment...
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Old 05-17-2006, 10:37 AM
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Coach Morse Coach Morse is offline
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You stated that your product has been so populat that you've run out of your first sample batch.

If that's the case, try taking advanced orders and see if you can get the orders paid for up front. Or, take advanced orders then work a deal with your supplier to pay them after you've collected on your orders.

What makes investors skeptical is investing with someone who can't demonstrate any financial strength whatsoever. $10,000 is a small amount of money, and your difficulty in finding such a small amount on your own raises doubts about your ability to deliver.

Just some FFT from the FWIWD.
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Old 05-17-2006, 04:02 PM
Hemponics Hemponics is offline
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Nobody in my family has the finances to help on this. And as far “financial strength”, how much did you have at the age of 22? I think that is what most investors are afraid of. My age. What they need to realize is that my experience in this area is more then almost everyone my age, and some well beyond my age. I have run by myself a small company and increased productivity and profits 10 times what it had been and did it at the age of 18. I have been researching this new market and working on the product itself for almost 3 years. I know I can do this, just need to find someone who also see that. Can anyone think of any groups or something that might have someone who could help, or do I really need to hang outside a building with a sign?
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Old 05-17-2006, 04:13 PM
Comtrad Comtrad is offline
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So how good is the weed it grows?...
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  #10  
Old 05-17-2006, 04:46 PM
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Quote:
Originally Posted by Hemponics
Nobody in my family has the finances to help on this. And as far “financial strength”, how much did you have at the age of 22? I think that is what most investors are afraid of. My age. What they need to realize is that my experience in this area is more then almost everyone my age, and some well beyond my age. I have run by myself a small company and increased productivity and profits 10 times what it had been and did it at the age of 18. I have been researching this new market and working on the product itself for almost 3 years. I know I can do this, just need to find someone who also see that. Can anyone think of any groups or something that might have someone who could help, or do I really need to hang outside a building with a sign?
I realize you're 22, that's why you're not listening!

At the age of 22 I was in the Army, married and my wife had just given birth. By the age of 24 (despite being in the Army) I had $10,000 in the bank, AND excellent credit! Then four more years of trying to make ends meet, had second child, got out of the Army and at age 28, I had another $10,000 in the bank and started my first business (still had excellent credit btw).

You are saying you have run a successful business. Then where is your profit??? If your business was successful why can't you scrape together $10,000??? And why don't you have credit?

The problem is not your age. The problem is your lack of evidence to support your claim that you can be successful in the business. Without you producing some of your own money, excellent credit to secure financing or collateral to secure a loan, a potential investor has nothing to go on but your word. And don't take this personal, but your word isn't enough to go on. It's not you age at all.

Go back to work, save your money, and establish good credit. Then in a few years you'll be in a better position to secure investor confidence.

From the FWIWD.
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