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Production Investments?

Author
CJ Alland
CB Trading
#1 - 2014-12-07 15:55:58 UTC  |  Edited by: CJ Alland
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Artemis Scat
Thebes Guild
#2 - 2014-12-07 16:55:51 UTC
Is your corporation planning to make these capital ships for use, or for sale?
Tigerras
Smash Incorporated
#3 - 2014-12-07 17:05:32 UTC
Also have you taken the removal of teams into consideration
Artemis Scat
Thebes Guild
#4 - 2014-12-07 17:07:40 UTC
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
CB Trading
#5 - 2014-12-08 06:29:37 UTC  |  Edited by: CJ Alland
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Bad Bobby
Bring Me Sunshine
In Tea We Trust
#6 - 2014-12-08 09:52:56 UTC
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
CB Trading
#7 - 2014-12-08 16:41:14 UTC  |  Edited by: CJ Alland
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Bad Bobby
Bring Me Sunshine
In Tea We Trust
#8 - 2014-12-08 17:02:02 UTC
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
CB Trading
#9 - 2014-12-08 17:14:33 UTC  |  Edited by: CJ Alland
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Bad Bobby
Bring Me Sunshine
In Tea We Trust
#10 - 2014-12-08 17:22:52 UTC
CJ Alland wrote:
Yes, I do.

Would you like to expand upon that at all?
CJ Alland
CB Trading
#11 - 2014-12-08 17:34:06 UTC  |  Edited by: CJ Alland
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Bad Bobby
Bring Me Sunshine
In Tea We Trust
#12 - 2014-12-08 17:57:54 UTC
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
CB Trading
#13 - 2014-12-08 18:22:31 UTC  |  Edited by: CJ Alland
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Tigerras
Smash Incorporated
#14 - 2014-12-08 18:32:15 UTC
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
#15 - 2014-12-08 18:49:54 UTC
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.
#16 - 2014-12-09 09:35:42 UTC
Observation:

OP ended his posts with "CJ", then he got butthurt and stopped doing it.

Also Pineapple

@JerryTPepridge

Myst3rious En1gma
Deep Core Mining Inc.
Caldari State
#17 - 2014-12-10 01:56:03 UTC
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.