9. Funding Request
We have organizational structures that will ensure every investor is safeguarded from unwarranted risks by ensuring we operate under the regulations of martial arts in the state. By implementing this project, the company has increased confidence that the community will highly gain from increased security and both physical and mental growth of kids.
9.1 Offer
In our structured financial plan, investors stand to gain from returns on investments by the third year of operations. At Chain Martial Arts, we are keen to satisfy our investors since they are part of our progressive development strategy. Additionally, we are aspiring to ensure investors receive more than 50% of their investment as early as the second year with estimates reaching as high as 88.7%. We are a firm that believes in diversification and would not stand in investors’ path to diversification; thus, the increase needs to return investments.
9.3 Capital Requirements
We are requesting a loan of $ 38,247.00 from the financial institution to be repaid within the first five years of operation. The financial institution stands to gain from interests on capital which we propose at 3% and an assurance of the principle within the stipulated time frame. The primary securities on offer will be the vast assets in the form of training materials for the school.
9.4 Opportunities
Any investor will want to be associated with new opportunities. In as much as we are setting base here, our growth strategy aims at expanding more into other states. Martial arts is growing daily, and new opportunities are bound to present themselves. Depending on future feasibility studies and the growing influence of our school in the state, we are likely to consider another branch since the current state is populous and we can’t serve all their needs at one go.
9.5 Valuation of Business
The assets at our disposal are essential to our operations. We have valued the assets at an estimated $ 90,000.00, which we feel it is a significant amount capable of offering enough security. Moreover, with an increase in clients and growth, we will be forced to invest in more assets to cater to the increasing needs.
9.6 Exit Strategy
Although we have strategies that will ensure continuity, in the unfortunate event of an exit from business by investors, we have planned to dissolve the total ownership of the firm to the directors. Additionally, we have put in place contracts for our employees to ensure they remain loyal and confident in their daily operations, knowing that their future is always secure. I the contract we will offer additional incentives to act as motivations, thus increasing our presence in the area since returns on investments can only be guaranteed with increased participants.