Here's the situation:
I started a company with one partner almost two years ago that we incorporated to develop, own and operate franchised restaurants of one particular brand. We initially bought the develop rights to a defined territory that includes the Northwest suburbs of Baltimore, MD. To date we have opened one location and have two more in the works that will be complete by early summer of next year. So far, we have self-financed all the Maryland stuff.
Earlier this year, we took the opportunity to purchase another development territory in the Atlanta area. In addition, we brought on another partner who will be responsible for operating the stores in the new region. Unfortunately, my bankroll is not large enough to fund both regions simultaneously. As a result, we made the decision about 6 months ago to bring on outside investors to fund the growth. We worked with an expensive team of folks to pull together a sound financial model as well as produce/file the necessary legal documentation to properly issue an investment offering. A $900,000 offering was officially opened in August with a target close date of September 31, 2005. Min investment is 50k and a max of 900k. The funds will be allocated to the first 3 locations we open in the new territory and the investors will receive a profit sharing & equity stake in each of these 3 restaurants.
I have been talking with about 5 individuals who are very serious about contributing. Of these 5, I believe 3 will actually write a check. 2 of those 3 are smaller investors and the other is a potential major investor. He is the one that is giving me fits! Unfortunately, I need him at this point so I must push through the frustration. He is a very pleasant guy and very smart,which would make him a great fit. Except for one big problem, which is zero follow-through.
From the beginning he has made it clear that he is interested in writing a check for the full amount. In addition, has expressed a strong desire to fund anything additional we are doing after the first 3 restaurants are open. He is a relative of a good friend of mine, so I do know the guy is legitimate and has the type of money available to write checks of that size. However, he never returns my phone messages and fails to follow through on his own commitments to get back to me. When I do reach him, he can only talk for a few seconds and we can never dig in and address all issues. He does make sure to say that he still wants to do the deal though. As of today, I haven’t spoken with him in over a week. From the beginning, I always delivered the information he required in a timely fashion and provided additional things that he didn’t think to ask for. This process of calling, trying to make appointments, emailing without response has been playing out for over a month at this point. The only times we speak are when he happens to pick up the phone… which is maybe once per week. I have been very persistent at extending my hand to him daily, despite the fact that he has never called back even though he voluntarily says he will at the end of any conversation we’ve had. I have never asked for an apology or explanations for not returning messages, nor have I brought it up to make a point. The way I do business is generally through mutual respect, delivering on your commitments and living by your word. My background is sales and people like this particular investor generally fall into my ‘never going to buy, but always waste your time’ category. He knows the timeline and our desire to do a deal before Sept. 31. At this point, I would almost prefer that a new person would come along and make doing a deal with him unnecessary. Wouldn’t that be nice
Anyone have any good ideas on how to pursue this guy?
I started a company with one partner almost two years ago that we incorporated to develop, own and operate franchised restaurants of one particular brand. We initially bought the develop rights to a defined territory that includes the Northwest suburbs of Baltimore, MD. To date we have opened one location and have two more in the works that will be complete by early summer of next year. So far, we have self-financed all the Maryland stuff.
Earlier this year, we took the opportunity to purchase another development territory in the Atlanta area. In addition, we brought on another partner who will be responsible for operating the stores in the new region. Unfortunately, my bankroll is not large enough to fund both regions simultaneously. As a result, we made the decision about 6 months ago to bring on outside investors to fund the growth. We worked with an expensive team of folks to pull together a sound financial model as well as produce/file the necessary legal documentation to properly issue an investment offering. A $900,000 offering was officially opened in August with a target close date of September 31, 2005. Min investment is 50k and a max of 900k. The funds will be allocated to the first 3 locations we open in the new territory and the investors will receive a profit sharing & equity stake in each of these 3 restaurants.
I have been talking with about 5 individuals who are very serious about contributing. Of these 5, I believe 3 will actually write a check. 2 of those 3 are smaller investors and the other is a potential major investor. He is the one that is giving me fits! Unfortunately, I need him at this point so I must push through the frustration. He is a very pleasant guy and very smart,which would make him a great fit. Except for one big problem, which is zero follow-through.
From the beginning he has made it clear that he is interested in writing a check for the full amount. In addition, has expressed a strong desire to fund anything additional we are doing after the first 3 restaurants are open. He is a relative of a good friend of mine, so I do know the guy is legitimate and has the type of money available to write checks of that size. However, he never returns my phone messages and fails to follow through on his own commitments to get back to me. When I do reach him, he can only talk for a few seconds and we can never dig in and address all issues. He does make sure to say that he still wants to do the deal though. As of today, I haven’t spoken with him in over a week. From the beginning, I always delivered the information he required in a timely fashion and provided additional things that he didn’t think to ask for. This process of calling, trying to make appointments, emailing without response has been playing out for over a month at this point. The only times we speak are when he happens to pick up the phone… which is maybe once per week. I have been very persistent at extending my hand to him daily, despite the fact that he has never called back even though he voluntarily says he will at the end of any conversation we’ve had. I have never asked for an apology or explanations for not returning messages, nor have I brought it up to make a point. The way I do business is generally through mutual respect, delivering on your commitments and living by your word. My background is sales and people like this particular investor generally fall into my ‘never going to buy, but always waste your time’ category. He knows the timeline and our desire to do a deal before Sept. 31. At this point, I would almost prefer that a new person would come along and make doing a deal with him unnecessary. Wouldn’t that be nice
Anyone have any good ideas on how to pursue this guy?
