Derek L. Carter
Owner
DC Pros LLC
Lexington North Carolina, USA
Subject: 5 minutes of your time
First let me thank you for taking the time to engage and read this letter. If in 5 minutes’ time your interest is not piqued feel free to move on and have a great day!
Hello, my name is Derek Carter. I am writing this letter in hopes of reaching a silent investor that is willing to invest $500k (term-60) in a manufacturing start-up. I have worked in the sheet metal fabrication industry for 15 years at the same company. I started out operating a sandblast booth and worked various positions over the years and have been in the position of Engineering Manager for the past 16 months. I have experience in all facets of business from finance, scheduling, design engineering, process engineering, quality engineering, automation and controls, new product implementation, capital investments, business analysis, materials management, and maintenance. I have a degree in Electrical Engineering, prior certification in GMAW and GTAW welding, and 2 years hands on experience with robotic programming and automation controls.
As a person with a lot of passion for what I do in the industry I work in I want to continue to grow and be successful and that depends on how successful the industry is. There is a problem in the manufacturing industry that many companies have identified – shortage of skilled labor. Specifically in the metal fabrication industry there are wide shortages of welders, brake press operators, and CNC operators. Almost all the major equipment manufacturers are starting to offer a wide array of automation solutions to help curb the demand for skilled labor. Automation is nothing new, but in today’s world we have many advanced solutions. Several robot manufacturers are now offering various Cobot solutions for pick and place applications, welding, part tending, etc. These Cobots are often on average half the expense of a traditional industrial robot caged cell, but still a big-ticket item at $250k average purchase and implementation cost. Outside of welding operations equipment manufacturers are offering automated metal cutting and bending solutions, and automated paint solutions. Manufacturers are starting to invest in automation, but a challenge many of them face is managing the design, procurement, and implementation of automated processes. Larger companies will turn to an integrator for a customized turn-key system, and allow them to manage the development, procurement and implementation of the system. This can be a great process for implementing automation into a manufacturing facility, but at the cost of long lead times and high cost for design and development of the system.
When I find the right investor to get the capital needed to start my own manufacturing venture my goal is to develop modular integrated automation units that you can have up and running in days instead of weeks or even months. If you’ve made it this far, you’re probably wondering to yourself how I can make this possible with just a $500k investment. When setting out to achieve a goal I think Mark Twain said it best:
“The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks and starting on the first one.”
~ Mark Twain
A $500k investment will allow me to get started. This will provide me with the necessary capital needed to lease a manufacturing space, purchase equipment and materials, and have working capital to support business expenses for the first year in operation. During the first year I will be able to break into the industry by providing metal cutting, bending, welding, and machining solutions as a tier 2 supplier. In North Carolina alone the current Market outlook is at $570M in revenue as of 2023 with a projected growth of 20% by the year 2030. The opportunities are there for me to be able to grow quickly within the industry. By year 2 in business, I have projected I will have the revenue to set aside investment capital for the company to hire 2 design and controls engineers. This will be the beginning stages of developing and prototyping our modular automation units and the start of the R&D department. We will continue to fulfill customer requirements for business acquired during the first 2 years to keep a positive cash-flow of revenue for the company and we will continue to grow that sector of the business. By year 3 we will have our first modular automation unit prototype ready for demonstration. We will use connections within the industry to market at tradeshows and events. This will provide exposure for the company and put us on the map as a next generation Automation integrator. By year 4 I have projected we will have our first 5 units sold with orders going into year 5. By year 5 the company will be able to pay back the original investment at 1.5 times the original principal amount.
The manufacturing industry is continuing to grow, and skilled labor is continuing to decline. I want to take this problem head on and be a world class integrator in North Carolina that other manufacturers can turn to when they are facing problems with other traditional integrators that quite frankly aren’t getting the job done. There are great integrators across the country, don’t get me wrong, but they are few and far between in North Carolina and the surrounding areas and there are many manufacturers in the area that I know would be grateful to have a reliable, local, cost friendly integrator to work with, and I know I can make that happen with launching my company.
At this point you’ve reached the 5-minute mark. I hope I’ve piqued your interest or at least got you more curious about the metal fabrication industry and the levels of automation that are starting to be introduced. It’s exciting stuff!
Now that I’ve introduced myself, pitched by business, and covered a few details I’m sure you’re interested in seeing the dollar value associated with the investment and projected revenue. Below I have provided an appendix with details on the investment financials and projected revenue for the year 2025 and 2026.
Again, I thank you for taking the time to read this letter. If a next generation metal manufacturing and integration company is something you could see yourself investing in, please reach out! I’ll be glad to answer any questions you may have and discuss next steps in the investment process.
Kind Regards,
Derek L. Carter
Owner
DC Pros LLC
Appendix
Financials
Capital Requirements
The Company will need to obtain a loan in the amount of $500,000.00.
The loan's terms are Net 60 Months paid back at 1.5x original principal amount.
Other financial information: The funds from our startup financing will be used for the following key expenses in our first year of operations:
· Leasing a 20,000 square foot manufacturing facility for metal fabrication: $100,000
· Down payment on equipment:
§ Laser cutting machine: $80,000
§ Press brake: $36,000
§ Welding equipment: $30,000
§ CNC Machining center: $50,000
§ Materials and supplies: $25,000
§ Salaries for 2 full-time staff: $120,000
§ Working capital and operating expenses: $50,000
Projected Income Statement:
For each of the years ending the 31st day of December: (USD - US Dollars)
| Revenues: | 2025 | 2026
| Gross Sales: | 200,000.00 | 300,000.00
| Less Cost of Goods Sold: | (35,000.00) | (40,000.00)
| Gross Profit: | $165,000.00 | $260,000.00
| Expenses: Marketing | 2,000.00 | 500.00
| Insurance | 12,000.00 | 12,000.00
| Rent | 4,100.00 | 4,100.00
| Utilities | 1,500.00 | 2,000.00
| Licenses | 2,500.00 | 500.00
| Salaries and Benefits | 60,000.00 | 80,000.00
| Interest | 10,000.00 | 3,000.00
| Total Expenses: | $92,100.00 | $102,100.00
| NET INCOME (Before Tax): | $72,900.00 | $157,900.00