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CJ Alland
Mighty Industries
Intrepid Crossing
5
   |
Posted - 2014.12.07 15:55:58 -
[1] - Quote
Always thought this side of eve was a bit side ways. But why not give it a go aye?
So a little history, Myself and a real life friend started playing 2 years ago and always wanted to get into capital production.
We're now in the first stages of getting that dream started. We have enough capitals to start building 3 but are looking at the potential of perhaps organising investments so that large production can take place.
The Details
We are new to our current alliance and have all the go ahead for everything we have planned. We're don't know exactly how strong the mining backbone is since we just joined however we know some other places we can get supplies.
Our idea is to open for investors to forward the ISK for the production of said capital. After the production is finished and item is sold.
It'll all be done on a que system and the produced ships will be marked and investments paid back in order.
There are quite a few details to be ironed out and this isn't a thread asking for ISK just now but just a basic premise. I suspect someone has done it before but how would you Investors feel about it?
TLDR:
Asking about whether investors are interested in Making an investment in the production of capital ships for a nice return.
Investments would be uncollateralised and there are lots of details to iron out and spreadsheets to make but just as an Idea for now? :)
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Artemis Scat
University of Caille
Gallente Federation
18
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Posted - 2014.12.07 16:55:51 -
[2] - Quote
Is your corporation planning to make these capital ships for use, or for sale? |
Tigerras
Smash Incorporated
56
|
Posted - 2014.12.07 17:05:32 -
[3] - Quote
Also have you taken the removal of teams into consideration |
Artemis Scat
University of Caille
Gallente Federation
18
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Posted - 2014.12.07 17:07:40 -
[4] - Quote
You said that you aren't sure if the mining backbone is for decent enough for such a project? Chances are, if you don't know, then it is probably not nearly strong enough to support such a project. |
CJ Alland
Mighty Industries
Intrepid Crossing
5
|
Posted - 2014.12.08 06:29:37 -
[5] - Quote
I've never used teams for manufacturing anyway, if that's what you meant and the produced ships would be for sales.
We're unsure of the mineral supply currently because we have only been in the alliance for a few days and haven't organised any bulk buys yet.
Once we're settled we'll work on all that stuff but for the moment I was just discussing the idea. Because we have plenty of manufacturing slots to work on more capitals so it'd be great to maximise that potential.
CJ |
Bad Bobby
Bring Me Sunshine
In Tea We Trust
652
|
Posted - 2014.12.08 09:52:56 -
[6] - Quote
How much would you be looking to borrow?
What profit margin are you expecting to get from your sales?
Are you willing to provide some kind of security for the loan?
How much are you expecting to pay in interest?
In general, your post is somewhat light on details which isn't great for investor confidence. The first impression is that you are out of your depth. |
CJ Alland
Mighty Industries
Intrepid Crossing
5
|
Posted - 2014.12.08 16:41:14 -
[7] - Quote
Details.
The sum borrowed would be enough to cover the costs of producing the Capital ships, logistics will be taken out of our side of the profit.
There would be no security such as collateral.
The ISK would be returned upon sale of the ship as well as a percentage of the profit.
40% of the profit made on the item would be returned to the investor as well as they're original investment.
Lets use the Archon as an example;
The cost to produce would be - 1,099,130,432.44
and the estimated profit - 400,869,567.56
This means a return of - 160,347,827.02
So the total sum returned would be 1,259,478,259.46
That's a nice 14.5% return on investment.
CJ |
Bad Bobby
Bring Me Sunshine
In Tea We Trust
652
|
Posted - 2014.12.08 17:02:02 -
[8] - Quote
CJ Alland wrote:The sum borrowed would be enough to cover the costs of producing the Capital ships
I was hoping for a number.
CJ Alland wrote:The cost to produce would be - 1,099,130,432.44
Yikes.
CJ Alland wrote:and the estimated profit - 400,869,567.56
You expect to sell archons for 1.5B each, that being almost 400m above market price? |
CJ Alland
Mighty Industries
Intrepid Crossing
5
|
Posted - 2014.12.08 17:14:33 -
[9] - Quote
Yes, I do. |
Bad Bobby
Bring Me Sunshine
In Tea We Trust
652
|
Posted - 2014.12.08 17:22:52 -
[10] - Quote
CJ Alland wrote:Yes, I do.
Would you like to expand upon that at all? |
CJ Alland
Mighty Industries
Intrepid Crossing
5
|
Posted - 2014.12.08 17:34:06 -
[11] - Quote
I would not |
Bad Bobby
Bring Me Sunshine
In Tea We Trust
653
|
Posted - 2014.12.08 17:57:54 -
[12] - Quote
CJ Alland wrote:I would not
Well, that's going to be a problem.
Because looking at this from the outside it appears that you have no idea what you are doing.
Your numbers do not make any sense. Your business plan is vague. Your attitude is poor.
This all points towards you being a bad investment and your project a likely failure.
What I and other investors will need now is a post from you that corrects these issues. If you can't provide that post, then your best course of action would be to contact ISD and ask them to lock this thread before you do any more damage. |
CJ Alland
Mighty Industries
Intrepid Crossing
5
|
Posted - 2014.12.08 18:22:31 -
[13] - Quote
This wasn't meant to be a thread asking for investments. It was asking about the idea of people investing in the production chain of capitals and whether it was something investors would be interested in. I did state that we had just move into a new alliance and will be sorting out our production line for when the time if it does come to offer it our to investors.
There has been no written plan yet. I provided some brief maths as you wanted to know roughly what numbers we were talking about.
But to be more CLEAR. If this does ever become an investment opportunity there will be a Read able plan with all the details you would want. But it would still be a short lived project because after a few months the Corporation would have enough to maintain full productivity on it's own wallet.
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Tigerras
Smash Incorporated
56
|
Posted - 2014.12.08 18:32:15 -
[14] - Quote
CJ Alland wrote:This wasn't meant to be a thread asking for investments. It was asking about the idea of people investing in the production chain of capitals and whether it was something investors would be interested in. I did state that we had just move into a new alliance and will be sorting out our production line for when the time if it does come to offer it our to investors.
I didn't want to spend a lot of time writing up a plan to only come online and have people say, sorry investors don't invest in production.
There has been no written plan yet. I provided some brief maths as you wanted to know roughly what numbers we were talking about.
But to be more CLEAR. If this does ever become an investment opportunity there will be a Read able plan with all the details you would want. But it would still be a short lived project because after a few months the Corporation would have enough to maintain full productivity on it's own wallet.
People invest in production. There's your answer. |
Bad Bobby
Bring Me Sunshine
In Tea We Trust
653
|
Posted - 2014.12.08 18:49:54 -
[15] - Quote
I would suggest that if you do come back with a proposal, you make sure it is one that includes collateral.
An uncollateralised loan to an unknown with a reasonable business plan and good numbers will cap at one or two billion. This will be insufficient for your needs.
The going rate for such a loan is around 10% per month. This will be rather high considering the profit margin on your product, particularly when you are just starting out.
Therefore you will need to provide collateral in order to borrow a worthwhile amount of isk at a rate that will enable, rather than undermine, your plans.
I wish you the best of luck with your venture. I expect it to be a failure, but an educational one! |
Jerry T Pepridge
Meta Game Analysis and Investment INC.
212
|
Posted - 2014.12.09 09:35:42 -
[16] - Quote
Observation:
OP ended his posts with "CJ", then he got butthurt and stopped doing it.
Also Pineapple |
Myst3rious En1gma
Myst3rium Logistics and Investments
4
|
Posted - 2014.12.10 01:56:03 -
[17] - Quote
Your request for funding would need to answer some basic questions as well as cover some inherent roadblocks to a successful outcome. The basic questions are pretty straightforward; How much Isk? How long would you need it? What Interest Rate would the investor receive? What will you offer as collateral? (Please don't ask for a multi-billion isk loan with no collateral out of the gate, for that talk to your alliance), and finally what payment interval? Additionally how much experience does your corp and you specifically have in operating large scale production operations?
Once you can answer those then there are some specific queries that would need to be addressed and Bad Bobby highlighted the most glaring which is how do anticipate selling Archons for 1.5B ea when there are currently 20+ open contracts for less than that? How big is the appetite for Capital ships in your little slice of New Eden? With the Phoebe changes cap builders ability to sell is severely impacted by the customers willingness to traverse and pick up hulls far from home. |
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