The 2009 poster for FAMU's Softball team reads: "PRIDE- If you don't believe, you don't belong." The team is gathered on the Lady Rattler Softball Complex holding a banner that reads simply '500' with the caption saying that Coach Veronica Wiggins is going for her 500th career win.
Auntie (as she called when it's NOT softball season) has been retiring from her 16-year position as the Head Coach for FAMU's Softball team for at least the last 5 years. Currently, the team's record is a miserable 5-19 but if they get their act together, if they just start to believe in themselves and their own ability, a record of 7-19 (they play a double header against Savannah State University today at 3p and 5p at FAMU, here in Tallahassee) can take her to her 500th career win. But, as the slogan reads, if you don't believe then you do not belong.
And that's what I've been finding in this quest for Concept. There are many that don't believe that my vision is attainable but those that do believe certainly do belong in my circle- you all keep me going and you should know how much I value your support. Speaking of value...
My projected startup costs are $2.7M. The SBA's 504 Loan could possibly absorb about $1.7M of those costs ($1.1M for the building and land, estimated $500K for the buildout to LEED standards, $100K for furniture, fixtures and equipment [FFE] and $100K for soft costs like architects and engineers). The remaining balance of $1M will have to come from private equity participation and some very creative capital-raising alternatives lol.
Now I'm faced with the question of how much ownership am I willing to relinquish to make this happen? In order to maintain control, you know that at a minimum, I must maintain at least a 51% share of the company but to offer up 49% of the company at a value of $1M brings my pre-money valuation only to about $2M and that's no good lol. I thought about 25%. That brings the valuation to $4M (that is, if 25% of the business is worth, or valued at, $1M then 100% of the business is valued at $4M- or at least that's my understanding of it). $4M is far better than $2M but let's explore that further.
What about if I reliquished only 20% of Concept (the entire portfolio)? That would bring the pre-money valuation to $5M...which isn't too shabby. I hope to be able to chat with a securities attorney about this in the next couple of weeks to get a better feel for this.
So, what have we learned today? That's is takes belief in yourself more than someone else's belief in you to get where you want to be. If you don't believe, you don't belong.
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