Alright guys, today was the day, we closed the deal. We actually have two investors in our company now, the first investor invested $20k, the second investor we just closed with invested $75k. This is the renovatio, the rebirth of beModel.com. Go ahead and check out the video, and below I am going to try and explain, educate, at the best of my knowledge how we raised the capital from $0 to a total of $95,000, with absolutely no business plan.
Where I Started
It’s strongly suggested you find out where I started and where I am at now by reading my blogs in order, my Young & Stupid series, let me give you all of the links:
Young & Stupid: How I Made 2.2 Million
Young & Stupid: How I Lost My Millions
Young & Stupid: How I Plan To Get Rich. Again.
Young & Stupid: The Story Of My Depression
It’s a lot of reading, and some of it might seem almost repetitive, but it’s the best way to find out where I am, so I can tell you where all of my emotion and energy came from. I basically lost it all, and my best friend & partner came up with an idea, beModel.com. We had no money, no one to just give us money, I’ve lost all mine already, haha. So our goal was to raise capital in exchange for equity, and that’s what we did. The first $20k wasn’t as much of a challenge as the 2nd investment, so I will go into detail about our 2nd investment of $75,000.
The First $20,000
I actually describe in a different blog how I raised the initial $20k, you can read the blog here: How beModel Came To Life
The Second $75,000
This was the tough part, after the first initial investment, and the tragedy we went through with the offshore company in India we hired, we were really in for it. We ran out of cash fast, and we need another investor ASAP. With our public launch on May 1st, and the database crash that followed due to security flaws, we lost thousands of users. We knew the only way to get back on track quick, and to fix everything that was done horribly wrong from the offshore company, was another investor. Jamie and I had a vision, I kid you not, we saw and only saw us getting another investor, also known as the Law Of Attraction. I swear to god, if you see it, believe it, and go for it, it’s going to fucking happen. I am fucking living proof, I am not a genius, I am not some sales professional, I am not vocabulary skilled with words during presentations. I am shy, I stutter, I just work through it, and give it my best, my absolute BEST. I am probably like almost any other person, but just more driven than you :-P.
Jamie and I back in May, after the DB crash, realized we had to act fast, we acted as fast as we could. We started calling anyone and everyone, talking to our parents, our friends, and trying to find connections to people with money. You absolutely must talk, and talk your idea up, you have too. You ever heard of the elevator speech? Come up with one, it doesn’t have to be perfect, but you have to believe in your idea. Jamie and I were kings at talking our idea up, kings. beModel.com? What’s that? It’s basically going to be the most innovative social networking platform for networking with photographers and models in the industry, with tools that are just unheard of that will simply revolutionize the industry, and change it for good. Our competitor hasn’t even touched the surface of what is possible. See, the thing about being an entrepreneur, is you have to constantly want it, believe it, talk it, and reach for it. You have to be stubborn, honestly, being an entrepreneur is being stubborn, I can fucking promise you that fact. Every entrepreneur I know, is stubborn. Here is my simple system for how I achieved reaching what we were reaching for.
Step 1: Be lazy; sit and think; visualize; relax and use your brain
Step 2: Being lazy allows you to think, think of an idea, see it, write it down, believe it
Step 3: Unlazy yourself, and create it, hire someone, do it yourself, sell your fucking car if you have to, max your credit cards, fuck it.
Step 4: Get your paperwork ready, see the files that I created for the investors below (no business plan)
Step 5: Talk, push, talk, network, keep networking, ask, find, network, do it.
Building your company from scratch without an investor is a totally different mindset than with one, you must realize this now. If you have the time and skills available NOW to build it all your own, than more power to you. The mindset of an investor is different, you come up with an innovative idea that you believe can make money, and get a shit load of paper work ready, prepare your speech, build a powerpoint presentation, and start networking, not building, but networking.
Let me tell you this right now, Jamie and I networked hardcore, found connections through many friends, met up with many people, a lot of them not interested in the internet business AT ALL, but we didn’t give up. I started my new blog, The Renovatio, and posted my blog seeking investors, and I blew up like wildfire. From that one post, I got 5 inquiries all within a week! I barely get any traffic to my blog! The vision Jamie and I held, the consistency, the perseverance, and determination is what ultimately led us to this point, even though it took eight fucking long months.
You want to raise capital for idea? This is how you do it.
How It Went Down
So, I think maybe our 5th investor meeting, this one was from my blog. Yes only 5 investor meetings, but we had multiple phone calls, referrals, emails, line ups, etc… This was probably our 5th presentation, I wasn’t as nervous presenting our idea anymore. Jamie and I head down to Cherry Creek to his house, we show up at exactly 3:30 PM. Jamie and I walk in, say hello to the guy, introduce ourselves, and I try my hardest to build rapport. Like I said, I am not the most outgoing guy AT FIRST. We sit at his dining table, beautiful house, and I just pull out my laptop. I get straight to the point, and try to sale our idea like no other. At the end of the conversation, I say how much we need. “Our minimum investment to get going is $75k, and a full investment would be $290.” He then proceeds to show interest, like most people do at first. He asked how much equity, return, buyout, etc… At the end of the meeting, it was definitely a positive note, not a NO, not a YES, but we had a feeling he might be interested, but most investors leave you with that feeling anyways… Uncertainty usually. Like a little sense of hope… It’s kind of annoying actually, they leave you feeling like they might want to do it, and then end up not doing it. Jamie and I left this meeting feeling pretty positive. He requested an email with some details on the percentage, milestones, and his buyout.
The First Email I Sent Was This:
It was really nice to finally meet you! Hope this seems lucrative, and beneficial to you, and looking forward to working together 🙂
So, a few things, the $75k investment is a perfect start, but I did want to ask for something that would be beneficial if it’s in your budget that is.
Milestone 1) Design phase, User Interface, Branding
a) Fly to LA to meet with JR and discuss the design in thorough detail
b) Take the design, and convert into CSS/XHTML
Milestone 2) Framework Reconstruction, Database Fix, & Site Development
a) Framework Reconstruction
i) Database reconstruction & fix
ii) Internal/External Site API
b) Hidden for confidentiality.
c) Hidden for confidentiality.
d) Hidden for confidentiality.
e) Hidden for confidentiality.
Milestone 3) Launch & Market
a) Launch the newly reconstructed design
b) Hidden for confidentiality.
c) Hidden for confidentiality.
d) Hidden for confidentiality.
The investment covers the design phase, framework reconstruction, and “Hidden for confidentiality.”
This might be a long stretch, but not included in the minimum investment is the “Hidden for confidentiality,” because we figured we could raise (from the site) the 15-20k to install it later, but it would be ideal if we could get the development process for the “Hidden for confidentiality” started now. Let me know if this is something you are able or willing to do as another milestone investment possibly, for more equity of course. If this is not option, it’s absolutely not a problem or anything that would hold the potential back, would just get things moving faster.
EQUITY & BUYOUT
As far as the equity in the company for $75k, we feel 30% is absolutely fair, and are definitely ready to proceed. As far as a buy out, I believe $75k x 4 = $300k buy out is fair, as well as keeping a 5% equity in the company.
PS. Every single penny is dedicated to beModel, we are not taking any of the money for ourselves, not even $1. I am going to take this to an unexplainable level, and have every bit of confidence in it!
Naturally, I didn’t receive an email right away, actually I didn’t receive anything for two days… So I sent this:
The Second Email I Sent Was This:
I just wanted to let you know Jamie and I are 100% certain this project would be in great hands, we have the entire board of directors set, my 10 years of background in programming and computer background, along with 5 years of experience in SEO and Internet Advertising. My partner Jamie & Prophecy have extensive background in the entertainment industry as well as major connections to market and expand offline to get branding and exposure in places other than just online.
This project would be 100% under our control, and off the ground in less than 1 year. I would offer you a $75k-$100k x 5 buyout = $375k or $500k buy out, along with the remaining 5% equity in the company.
If you are interested in this, the sooner, the better. We will handle the paperwork, the company structure, everything, the finances, the milestones, we will just email/call you with results of how it is coming along weekly/biweekly/monthly, whatever you prefer. I know 100% certain we can get this going, and stomp our competitor within months, breaking the Top Alexa 1000 within 24 months.
If you are not interested, I would greatly appreciate it if you would tell me why you are not? So it can better direct Jamie and I what to do differently with other investors. But I know this tickles you a little, and are curious to see how well we can do, and how much money we can make you without you having to do an “ounce” of lifting. We will bring this to the top, and show you a great positive return on your investment.
Jamie and I would love the pleasure of working with you, seeing that we have quite a few common interests.
I know this might be your first internet startup investment, but I will tell you, if you were to have anybody as partners in this industry, you definitely have the right guys for the job. Not only am I experienced in making money online, we are both in the industry of photography, fashion, and women. We know what needs to be fixed, done, improved, and what will be revolutionary, and what will change the industry. It’s surprisingly a big niche that can easily be dominated.
I have attached the presentation, expenses, executive summary, the press release, projections, and the powerpoint to refresh your memory on the project, sorry I didn’t leave you paper copies.
Nick Krut – Lead Developer; proficient in all web technologies
Elder jR – Lead Art Director & Designer
Andrew Thompson – CEO, Manager, Visionary, Internet Advertising & Internet Marketing
Jamie Jones – CEO, Visionary, Offline Branding
Prophecy Onasis – Initial Investor, Offline Branding
Milestone 1 – Design UI
Milestone 2 – Development
Milestone 3 – Launch & Market
Milestone 4 – Add Innovative Technologies
This email must of been the one that got to him, because after all of our long hard work, he replied with this:
Ron replied with this:
Got your note. See below and let me know. I like your idea, and lets do it.
1 $10k now, to get going.
2. $35k when legal, company docs are done, accepted by all, and signed.
3. $30k when you say “go” on google/internet advertising and other advertising. “go” meaning all development/testing and it all actually works when clients ‘hit’ the site. (begin milestone 3)
4. I own 30% until you exercise your option of $400,000 for 22% of company from 0-5 years. I have the right to keep 8%. After 5 years, its a time/money amount to be mutually agreed upon . (the 5x works as long as its exercised fast enough).
5. email updates, with data of your choosing, 2x per month works.
I like your intensity, your passion, and your enthusiasm. I believe you can really do this as much as you do.
If the above works for you, then go. I need to know who to make a check to.
And this is how I did it, trust me, we went through a lot, and we finally ran into the right guy, and apparently my enthusiasm and passion closed the deal. So if I can do it, you can do it.
Envision it, believe it, write it down, and push your hardest. Push so hard, and do not stop talking about it, ever. You must 100% absolutely believe in your idea.
I know it seems simple, but most people give up, and stop talking about it, that’s the problem. You cannot stop talking about it, you cannot stop networking, you cannot give up no matter what. beModel.com was Jamie’s and I’s life, literally, even though we didn’t use it 24/7, all we did was talk about it, and work on it. Our energy was positive, and our motive was there.
Files I Created
bM-Projections.xlsx: I created an intense excel file with estimated traffic, signups, income, expenses, and the profits. Click here to see it.
bM-Comparison.xlsx: I created a comparison of what we will have versus our competitors.
bM-Expenses.xlsx: I created an excel file of where every single penny is going of their investment.
bM-Presentation.pptx: I created a 10 slide powerpoint presentation using exactly this format.
bM-ATBio.docx: I wrote a professional resume style bio on myself, including all my experience and skills.
bM-ExecutiveSummary.docx: I wrote up a professional summary of what beModel is, how it’s going to make money, our advantage, etc…
bM-PressRelease.docx: A press release I had written up on our initial public launch, kind of just makes us look bigger then we are in the beginning.
PS. I wrote this while under the influence of a few shots, keep in mind, I never proofread, ever. I always, and I mean always, freestyle my blogs. So if you ever catch a mistake, I am sorry. Every blog I write comes from the heart, the honest truth, and how I did it.
Please comment below, feedback keeps me blogging!