Emerte Ltd

I am construction contractor who delves into home, basement, and garage renovations. Commercial work is something I do quote on, but rarely get.

Honestly, this is my first business, and I didn't know anything about business going into it. It's been an amazing journey learning a lot as I go about pricing, scheduling, cash flow, etc. I've been tackling problems as the occur in my company and creating systems to avoid situations in I've come across in the future, but that doesn't stop me from creating new mistakes. I know I have a lot to learn, but I'd like to make the journey anyway.

I market for work on HomeStars and RenovationFind currently. They help me maintain a good workflow for a 1-man crew as my turn-over rate on leads is around 20-30%. I charge 30% margin on all labour, materials, and services provided so that I can maintain the marketing, accounting, and other monthly business expenses. My biggest problem now is budgeting. I started to make a huge change in July, 2021 with budgeting because I was bleeding money. This caused me to create a projection budget for August, 2021, and eliminate some unnecessary spending. August, 2021 did not go as planned as 1 job took a little longer to do, 1 job the client added extras, bringing me into September, and some clients have yet to pay. I am now working on budgeting money as it comes in so that I can better make all my expenses.

So far, my company has been ending off each month with less than $1,000 in the bank, so I'm asking for $25,000. I would like to use part of the $25,000 as a cash-on-hand so that I can always afford to pay suppliers and myself on time. The other part of the $25,000 (approx $10k) will go to paying suppliers I have payment arrangements with so I can cut back on monthly expenses by at least $1,500/mo. 

I realise I have a lot to learn, but the $25,000 will help me on the way to maintaining a successful business. If you invest in my company, I'd also welcome any input you may have on helping me out. 

Here are my thoughts (keep in mind, I am open to change as well): there are two options that can be discussed, investment, and a loan. Honestly, I know I'm requesting funding from businesspeople, so I want you to make the most amount of money off me without me breaking my bank or yours. For a $25,000 investment, you would get 5% revenue or $600, which ever is higher, both paid monthly. This ensures you get a minimum return on investment of 28.8% per year. For a $25,000 loan, I am willing to pay $1,000/mo for 3 years (25.45% interest compounded monthly). To help eliminate the risk factor, should my business fail, I will pay back the remaining $25,000 investment, or maintain the loan payments until it is paid.