Saturday, May 21, 2005

How Much Is Enough

What is a reasonable return to a funder ? I really need to rescue this operations and I am selling to them something that I whole-heartedly believe in. Yes, the previous management may have been a bit ambitious and over-optimistic on the company and I still blame them for putting me in this mess now (I'll get back to them when I am done with this, for sure). I could do this... I would like to prove to Baldy and Tummy (you'll come across them as my entries progress - a lot of bean to spill on them, so God help us all !)
I have been mulling in my mind about the kind of return to give that investor. For the first half million, payable in three years, I am looking at 12% per annum... that's the 36% in three years. With banks giving a mere 3-4% and ASB/ASN/TH at no more than 7%, it should pique the interest of our good funder here. The cash flow is doable... I can fill up the place almost immediately and see the revenue sky-rocket...
Enough ?

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