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Other People's Money (OPM) 
 

If you have all of the attributes required to get into the car wash business but you still lack funding, there are a myriad of ways to locate OPM and structure your business around it.  Following are a few common ones:

  • “Friends and Family” is an industry term that defines that close knit group of people in our inner circle.  Some investors prefer this group as the source of their investment cash while others stay as far away from it as possible.  Like every other decision, as your own boss, it’s up to you.  
  • An Angel Investor or Silent Partner is a high net worth individual looking for better returns than traditional investments will give them.  They provide capital to startup companies. They will either make loans or take an equity position. 
  • Venture Capital is the money and resources made available to startup firms and small businesses with exceptional growth potential. Most venture capital money comes from an organized group of wealthy investors. Venture capital money is typically looking for aggressive investments that mature quickly and provide high returns.  If you choose this route, your investors will be impatient and very demanding.

There are many sources for good information about structuring deals with OPM.  One good reference is OPM - Other People’s Money by Michael A. Lechter.  If you have a good plan and a good location, the money is out there – you just need to find it and structure a deal that is aligned with your desires.

 Financial Tools

The following tools will act as templates and assist you in preparing and completing the financial portion of your business plan.

Cash Flow Projection

 Funding Sources and Use

 Loan Payment Calculator

 Personal Finance Template

 Income Statement Projection

 
 
 
 
 
 
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