Ask Entrepreneur

How can I get investors involved in a company that reconditions tractors and trailers?

We pressure wash, sand blast, then prime and paint to look as good as new for a lot less than purchasing a new tractor or trailer.
The standard procedure is to find somebody who's interested in your industry in general, then begin with a two- to five-page summary memo, followed by either nothing at all (dead end, sorry) or an invitation to meet in person and pitch.

Then you do the pitch, and you have a business plan ready to go in the background. Your business plan includes numbers to support the idea that your business is a good investment.

That's the standard, but I should warn you that you're facing a tough uphill climb. Investors will have trouble seeing how they are going to double or triple their money investing in your business because it's mostly service, with no obvious leverage. How and when are you going to sell it? That's the only way they get a return on their investment. How will you be able to sell it for five to 10 times what it was worth when they invested, so they get a return? That's tough with service businesses.

Tim

Share Your Thoughts

Today's Editor's Picks

About ASK ENTREPRENEUR

Ask Entrepreneur is a question-and-answer forum for and by the Entrepreneur.com community. Send in your burning business question, or comment on someone else's now. Have a Question? Ask Now

Topics (over 1000+ answers)

Ask Entrepreneur Q&A Hangouts

Google + Hangout With Shark Tank
Google + Hangout With Jason Falls
Google + Hangout With Angela Jia Kim
Google + Hangout With Grant Cardone

ASK Quick Tips