Investment Opportunity for investment in two entrepreneurs.
To Whom it May Concern,
We are reaching out to you with open arms to offer an exceptional, unique opportunity to invest in us. What you will get with us is a life-long friendship, appreciation, respect, and obviously mutually beneficial relationship that will create phenomenal, synergistic flows that only a select few are ever lucky enough to experience.
As the current owners of a small engineering firm, as well as aspiring entrepreneurs looking to transition into Foundry Tooling, Engineering, Manufacturing, Machining, and Proto-Typing\Production of ferrous and non-ferrous mechanical\structural components of the biggest and most profitable industries that exist; we would like to give you a small background on why we feel that we are exceptionally qualified and far over due in taking our place in the realm of business ownership.
Currently, where we are located is just outside of Green Bay, WI. We were in the process of purchasing an ISO9001 certified DoD exclusive machine shop with funding approved at $5m with an investor that came across our information on here. During due diligence, the owner was subjected to an audit and being DoD exclusive required an extremely thorough analysis of finances. Unfortunately, the owners decided to put the sale on hold indefinitely to deal with the audit.
Currently there are two or three other machine shops with the proper equipment, cashflow, and price in the Wisconsin area that we are considering moving toward one of those. However, we are currently leaning in the direction of creating our own shop from scratch. Rather than purchasing an ISO9001 cert, we are beginning to believe that it might be easier for us to get certified as we produce so we can streamline our internal processes and company culture.
We are seeking between $250k and $5m to purchase equipment, lease or purchase a facility, budget for working capital, and make sure that we have enough cash-flow and production happening to completely support the growth stage of the company. We are extremely diligent when it comes to preventative maintenance, pro-active problem solving, and realizing that a company only functions as well as the team members and associates. We are also hyper-aware of the psychology behind respectable treatment of everyone involved in the process.
At this point, we have a ton of support in the form of consultants, experience, and support from everyone that we have interacted with thus far in the process. To fine point a sample of examples, we have the following -
- George Petrie - (previous associate of mine)
- https://www.linkedin.com/in/george-petrie-3b373174 <<<<<<LinkedIn Profile
- Vast amount of experience with Human Resources.
- Currently managing a prestigious private college HR Department (1500 Employees).
- He is willing to help in any way he can to support us in setting up an exceptional HR profile, with a focus on innovation, creating a healthy culture, ISO compliance, hiring processes, creation of internal processes such as employee handbooks, streamlining documentation, etc.
- We have discussed at length what the most valuable characteristics a company can have. George is willing to do paid consulting for specific projects\hourly depending on what is needed and what is appropriate. He is also willing to guide any process along that he is exceedingly more knowledgeable on subjects that we may be lacking or new to.
- Ronnie McDowell - (Longtime friend)
- Machinist and Tradesmen for 10-15 years.
- In-depth understanding of various machining, metal fabrication processes with years of experience in high precision CNC Machining.
- He is excited and willing to work for\with us any time extra work needs completing. Available to work weekends\nights, times that we may not be able to keep the machines running.
- He is also excited to evaluate our processes and procedures in a smell test of sorts for how well he thinks they might function in action as opposed to the predicted outcome.
- He also knows various other people in the industry that could provide support if it is needed during the months of growing pains, including -
- Skilled Machinists
- Programmers
- Maintenance
- Helpers
- Engineers
- Quality Engineers
- ETC
- Ronnie is a close friend who will provide support as needed to get the company over the hill of success.
- Josh Brown - (Colleague - Works at Tradesmen International)
- https://www.linkedin.com/in/josh-brown-72a4305b <<<<<<LinkedIn Profile
- Josh used to help me find work when I was a fabricator, machinist, programmer, welder, etc. During the time I worked in the skilled-trades I developed a relationship with Josh based on trust and mutual respect.
- He would be willing to immediately support the business by helping us find quality employees who go through a rigorous interview process but provide exceptional value to the company.
- He is a recruiter with upwards of two decades of experience with finding the best candidates available for the most specialized work.
- When doing extraordinarily complex proto-typing, foundry tooling, engineering, and high precision machining it is of the utmost importance that candidates for employment are not only highly qualified, but that they enjoy the culture and expectations of the customers and the quality of the products.
- Jim Denomme - (Father\Father-in-Law) COO at Metal Fabrication Shop with 40+ years' experience in company industry
- https://www.linkedin.com/in/jimdenomme https://www.linkedin.com/in/jimdenomme <<<<<<LinkedIn Profile
- Jim is the father\Father-in-Law of the partners in this venture.
- He has over 40 years of experience in C-Level management roles at companies that would be potential customers for JSTS Enterprise.
- He has managed hundreds of individuals at multi-billion-dollar Fortune 500 companies that were coincidentally clients of mine when I was a project manager at a proto-type machine shop.
- He would be considered an expert in operations, enterprise management, metal fabrication (tooling\machining\GD&T processes), expert in business management from all angles.
- He is an expert in mechanical engineering, enterprise manufacturing processes, enterprise budget management, employee management (conflict\resolution), cultural development, B2B cooperation development, industry processes, industry requirements, extreme precision GD&T engineering and manufacturing processes.
- He also has an advanced intuition, capable of advanced (pure) reasoning skills of extraordinarily complex subjects, the ability to use critical thinking to extrapolate - decompartmentalize - and delineate awe inspiring integration of processes - business development - and ISO compliant processes and procedures that maximize value, promote growth, instill a high-morale work environment, maximize efficiency, limit mistakes, and pro-actively, methodically, and algorithmically solve problems before they appear, or limiting them to a one time learning experience.
- He is willing to consult, advise, interact, network, and help us succeed in any way he can. Being close to retirement, he will have abundant time to set aside and offer valuable insights, wisdom, and knowledge that will help JSTS Enterprise grow to an enterprise level of production and revenue in the most efficient way possible.
- This is just a shortlist of names, qualifications, relationships, and what they are willing to do to support us in this adventure. There are a vast number of resources I do not have the room to fit in here. For a full business plan and in-depth explanation of the people that are available to JSTS I am exceedingly confident that you will be able to see that this company is set up for success before it has even started.
Below I will try to give a concise summary of the technical details, delineated plans, and an explanation of why we are destined to achieve our goals and provide exceptional value to the industry for years to come.
Below is a list of technical aspects of company structure, financials, predictions, goals, expected margins (projected revenues, profit margins, and overall plan) and MOST importantly WHY these numbers are what they are.
- Company Information
- LLC\Partnership - eventual move to an S-Corp
- Main NAICS Code - 332710 - Machine Shops
- Estimated Profit Margin - 25-45%
- Estimated first year revenue (with $500k initial investment) EBITAS or Gross Sales - $2m +
- Estimated year five revenue - $10-100m
- Example of awarded parts -
- Part Qty Per Run - 30
- Revenue - $60,000
- Labor hours - 30-40
- Material Costs - $9500
- Average Net Profit Per Part - $1500 per
- Projected financials with addition of (1) shift:
- Revenue - $4.5 Million
- COGS - 30%
- Expenses - 35%
- Net Income - 35% $1,575,000
- Labor Hours - 9000
- Revenue per Labor Hour - $500
- Profit per Labor Hour - $175
- We will specialize in the following industries -
- DoD - Billions of dollars in contracts always available
- Heavy Equipment
- Marine
- Automotive
- Defense
- Gas and Oil
- Defense
- Mining
- Energy Production
- Aerospace
- Commercial
- Electronics
- Medical
- Exotic
- Law Enforcement
- More Options Available
- Types of services provided -
- High Precision (.0001+-.0001) Machining
- Foundry Tooling Production
- Rapid Prototyping
- Advanced Engineering Techniques
- Multitudes of Value-Add Components
- Investment Casting
- Foundry Processing
- PPAP and Process Approval Procedures
- Precise GD&T Quality Management
- In-depth understanding of MIL-Spec, DFARs, ASTM, SAE, AISI, Federal Spec (AMS), ASME, and all other relevant domestic or international standards.
- Consulting - We will provide clients with advice on material types, cost efficiency, critical aspects of applications, feasibility of through-put, production, R&D for highly regulated industries, and processes, procedures, staff, and equipment that provide exceptional results.
- Forging
- Exotic Material and High-Risk Component Production for Defense\Aerospace Applications
- Flow Analysis
- Engineering Analysis
- Long-Term and Short-Term Solutions to our most critical industries
- Compliance with ITAR, FAR, ISO9001, HIPPA, FDA, IATF 16949:2016, and any other regulatory agencies is of the highest priority
- Production of prototype and production approved high complexity components for our most crucial industries
- Equipment required to provide such services -
- CNC Verticals
- CNC Horizontals
- Bar Feeders
- Milling
- 2-axis, 3-axis, 4-axis, 5-axis, 7-axis
- CMM for most thorough and consistent quality processes
- Turning
- EDM
- Ferrous, Non-Ferrous, and Exotic Alloy Metal Forging\Casting for most difficult applications
- A2 Tool-Steel
- Aluminum
- Brass
- Bronze
- Cast-Iron
- Copper
- Stainless Steel
- Mild Steel
- Titanium
- Tantalum
- Nickel Alloys
- Magnesium Alloys
- Molybdenum
- Rhenium Alloys
- Tool Steels
- Tungsten Alloys
- Much More
- CAD, CAM, 2D, 3D Modeling
- Mechanical Engineering
- Programming
- FEA, Foundry Magma Flow Analysis
- Solidworks, Autodesk, Catia, CAM, CNC programming
- Foundry Tooling Design for all applications
- Foundry Process Analysis
- QA - Laser Modeling, CMM Computerized GD&T, Porosity Testing, X-Ray Analysis, Heat Treatment, Impregnation, Painting, Chemical Certs, Hardness Testing, Methodical QA Standards based on industry specific PPAP requirements
- We will take hydraulic, transmission, aerospace, motor, exhaust, suspension, pneumatic, turbine, flight components, and any other internal components of manufacturing origin that require an elevated level of scrutiny and diligent capabilities to provide exceptional quality, on-time delivery, and consistent costs, proved processes, and a genuine, transparent, mutually beneficial services that develop trust and a reputation for excellence time and time again.
- All types of sand castings, cores, water-jacket applications for turbos and turbines, foam tooling, polyurethane tooling (all grades), wood tooling, steel tooling, and investment casting with no limit on quality requirements that cannot be met.
- (With the proper up-front funding and capital) - We will lay the foundations of a company that very few entities can achieve. Through use of the most advanced technology, enthusiastic team members, highly qualified associates, vendors, and sub-processes (thorough vetting), consistent\proven processes, pro-active problem solving, diligence, exuberant depth of knowledge of all processes, immense support from experts, and an incredibly in depth understanding of human nature and best business practices, imagination, innovation, open-mindedness, value centered convictions, moral and ethical respect, cultural integration, and data-driven learning processes, we will create one of the most successful companies in the world.
- However, we need an exceptional opportunity, and we would very much like to find an investor\investors who are\is more interested in doing what is right and who are able to sit in awe of what is possible. Fortune favors the bold and we are looking for a partner or partners who are emotionally invested, who are open-minded, who like to push boundaries, who push innovation to the limits, who are capable of extended periods of focus without getting bored, who are passionate about what they are doing, who are determined, who lead by example and remember that the point of the company is not just to provide an ROI but to build something that will benefit hundreds or thousands of people, who want to make the world a better place.
Now I would like to get to a more personal side of things. I would like to explain a little about us and who we are, what our qualifications are, who we are as people, what type of convictions and characters we are, our histories, our goals, and again most importantly WHY we are different, WHY we will succeed, WHY you contact us and discuss opportunities, and WHY we are an exceptional opportunity.
My name is Jacob Oestreich -
https://www.linkedin.com/in/jacob-oestreich-87a008178 - LinkedIn Profile.
My partner is Sara Denomme -
https://www.linkedin.com/in/sara-amundson - LinkedIn Profile.
In the coming months or years, we will be changing to Jacob Denomme-Oestreich and Sara Denomme-Oestreich. Two children from a previous marriage are the reason for everything I do. There are two boys, one is seven, one is ten. When we are not working, planning, cleaning, or working, we are spending time with our boys and our pets.
A bit of history on me would go as follows -
- Age 18-21 - Attended UWM, majored in Finance. Worked as a roofer, laborer, construction, and various manual labor trades.
- 21 - 25 - Left University to take a go at Tech School. Simultaneously worked as a welder, fabricator, machine operator (CNC, Waterjet, Laser, etc.) During this time and more I worked at a vast array of metal fabrication companies. Some of the responsibilities I incurred were 2D and 3D CAD\CAM programming of CNC Mills, Lasers, Plasma Cutters, Waterjets, Lathes, as well as welding (sheet metal fabrication), and heavy metal fabrication.
- 25 - 27 - After realizing that college was not the best path for me, I worked in a wide array of machining, prototyping, engineering, fabrication, foundries, CNC, Sheet Metal, Heavy Weld, and every complex fabrication process that exists.
- Examples of industries that represent the depths of my experience and knowledge -
- Travel Lift Systems for movement of large freighters and heavy equipment
- Bay Ship both on new and old construction (welding, fabrication, etc.)
- Machining and machine operation of CNC's, Lasers, Waterjets, Plasma Cutters, Pittsburg's, Rollers, Grinders, Sheet Metal, Bending, Shearing, Forklift Operation, CAT Certified for Heavy Weldments on Mining Equipment, Carbon Arc, Buggo Use, anywhere from .030 hardwire to 3/32 fluxed core, X-Rayed processes, Machine Maintenance, Machine Repair, Learned Metals and their properties in depth at this time.
- Around 27-28 I was dealing with ruptured discs in my lower back and my career in physical labor was coming to end. However, the experience I gained during this period was crucial to what makes me exceptionally qualified to run my own company. I worked in every position from sweeping the floors to the most complex and tedious machining and fabrication processes. Being that my back was no longer allowing physical labor I transitioned into programming, CAD\CAM, 2D, 3D, modeling, mechanical engineering, design, and quality.
- 27 - 29 - I quickly realized that my capacity for understanding the internal, complex aspects of these industries was leading to a management focused role. However, for two or three years I worked at a vast array of companies learning the different processes. I programmed every type of machine that exists. I have knowledge of most modeling software that exists. I did everything from drawing commercial concrete engineering drawings to glazing and structural aluminum. As well as CNC's, Lasers, Waterjets, etc. During this time, I gained a deep insight into mechanical engineering.
- At the age of 28 or 29 I filed an LLC called Green University Engineering Services. My initial plan was to produce engineering drawings for commercial glazing contractors and structural aluminum and glass producers and installers. However, I was led down a detour of sorts during the first year of my self-employment.
- A contractor that designed, fabricated, and manufactured concrete shredding machines hired me as an engineering contractor. During this time was the first taste of management of large, complex projects I experienced. Due to my experience with 2D and 3D CAD software, I was tasked with managing the entire design of a $2m concrete shredding machine.
- Under the guidance of a very experienced mechanical engineer, I was taught the foundations and basics of compliance, standards, GD&T, ISO, pro-active approaches, SIGMA planning, and delegation of tasks. After the machine had been designed, produced, and sold, work ran out with that company. https://youtu.be/z9ofZlElBhs <<< Videos I took of the completed machine in operation. Yes, this is me recording this.
- 29 - 30 - After work ran out doing contracting, I ventured back into the world of employment and was given an incredibly unique opportunity. I found a position at a Rapid Prototyping, Complex CNC Machining, Foundry Tooling, Engineering, and Consulting Company that provides remarkably similar services to what we would like JSTS Enterprise to provide. During my time as a Project Manager, I managed between $200,000 and $500,000 per month in revenue. Please keep in mind that this was the first time I had officially been hired for Project Management specifically (with no degree, and only my experience for education).
- Luckily, I landed at a very respectable company. While there I learned the best business practices, psychology, synergy, and critical aspects of the trade, such as leading by example and creating a culture of inclusiveness, transparency, honesty, integrity, and determination.
- Some of my accomplishments after only seven months as a project manager in rapid prototyping include -
- Responsibility for largest accounts by volume after only one month on the job.
- Below is a list of a portion of my customers -
- Oshkosh Defense
- Meritor
- Brunswick (Mercury Marine)
- CATERPILLAR (Largest Client)
- CTI (Israeli Ministry of Defense)
- Gits Manufacturing
- Cummins
- Allison Transmission
- Polaris
- John Deere
- Husco
- Boeing
- and many more
- Maintained an average profit margin of 30 - 40% and never fell below 20%.
- Increased the revenue stream by upwards of $1m single handedly. Many buyers and engineers were referred directly to me from other divisions in large companies because they enjoyed my handling of their projects so much.
- Consulting on every aspect of the industry for most new customers.
- Scheduling all employee and department tasks.
- Foundry Tooling Production (engineering)
- QA team
- Engineering Team
- Programming Teams
- Machinists
- Laborers
- Dozens of vendors
- Engineering techniques acquired -
- Proper dimensional adjustments to model to account for shrinkage and expansion in cooling components
- Proper creation and engineering of foundry tooling components (determining split lines, adding draft, running flow analysis, understanding of alloy shrinkage rates, chemical balance to produce proper porosity levels per application, determining best elements and practices relative to critical aspects of component applications.
- CMM and QA software (best processes, software, procedures)
- Best path and tooling techniques to minimize chatter and vibration while maintaining prominent levels of production and best practices for balance to prolong tool life, while producing components as quickly as possible to provide for rapid turnaround on extraordinarily complex components.
- Best materials per application (Whether to use wood, polyurethane, or investment casting, whether a hunter is used, green sand or alternatives, efficient design of foundry tooling, PDM and Vault model management, best type of cores, such as printed, blown, foam, etc.)
- Deep understanding of components critical requirements, critical dimensions, GD&T (is its own language), best processes and materials based on applications on everything from simple handles to extraordinarily complex aerospace components with extremely tight tolerances.
- Best quality practices, procedures that automate as much as possible, limit room for human error, extensively document and report all processes.
- Gained a deep understanding of different industry expectations, PPAP Levels, compliance requirements such as MIL-SPEC or MIL-STD, ITAR, or DFAR (examples) and required steps to prove to customers those policies and procedures are in place to ensure quality, and those measures and procedures are followed meticulously. And provide any required documentation to prove processes.
- Gained a deep understanding of industrial equipment, manufacturers reputations, quality of assorted brands, best machines for specific processes and applications.
- In depth costing, budgeting, planning, scheduling, creation of contingencies, forecasting, accurate and fair pricing, value added processes, best vetting practices for employees, vendors, suppliers, as well as customers (finding customers with ethical standards and value driven convictions is deeply important to us).
- Advanced understanding of ERP, CRM, advertising, B2B sales, customer management, being intuitive about different desires and demands and then creating a relationship with other companies that brings out the best qualities of each.
- Meticulously defining, recording, documenting, and pro-actively implementing and producing new and innovative solutions to problems and increase value.
- The combination of my experiences, my learning style, my capacity for understanding and retaining complex systems, as well as years of experience in every position in the industry all provide me with a vividly unique understanding of how to create an exceptional company. Given the opportunity and provided with the capital, I can assure you that we will create the most successful and dependable companies in the world.
For the past four years I have struggled to create a company from nothing. My company has produced engineering drawings for various structural aluminum and glazing contractors, manufacturers, and producers. The work is tedious, thankless, time-consuming, and almost impossible to get to a point of critical mass shifting to task delegation and job creation from a place of working 80 hours per week on mind meltingly complex projects and playing the part of six different employees to try to create any kind of profit margin. During the last few years, I have learned an amalgamation of lessons provided directly by failure. The most important lessons I learned, however, are that a decent amount of working capital, and cash to expend on training, integration, and innovation are vastly more important than penny pinching and panic attacks about "relatively" unimportant amounts of cashflow and revenue production.
It is axiomatically true that only money can produce more money. Without resources to provide support, funds to invest, and the ability to create value through the accumulation of assets (property, equipment, time, and knowledge), it is a non-stop uphill walk permanently. Below we will provide rough estimates and high-level provisions of what we feel we need, and what we could accomplish with that.
- In summary, we are asking for funding ranging from $250k to around $5m for the following -
- Purchasing or leasing property
- Hiring skilled labor
- Purchasing of equipment, consumables, software
- Covering accounting, payroll, HR, consulting, taxes, COGS, etc.
- Keeping around 35-55% of the cash for working capital and unforeseen costs
- Enough breathing room to be able to afford the time to set everything up properly and ensure that time is spent ensuring everything is as efficient as possible.
- Since marketing is based more on word of mouth or application processes and qualifying, almost no money needs to be spent on marketing.
- We would like enough capital to be able to afford mid-grade equipment and high-grade quality equipment. Without the proper equipment and the necessary labor to effectively function on a large scale, quality, timeliness, and accident prevention will suffer immensely.
- The reason that this business is recession proof, with exceptional profit margins and large revenue streams is because value is based on diligence, consistency, and understanding. This requires a large amount of capital up front to provide the necessary functions. EG - High precision CNC machines, quality tools, well vetted vendors, thorough project management capabilities, and expensive software that provides necessary depth in the context of quality requirements and production.
- Also, you get what you pay for. Employees that are professionally qualified as WELL as having personality traits and characteristics that flow well with others are not cheap but are vitally important to success. The plan is to have all employees take Meyers Briggs personality tests and other assessments to determine compatibility with others and to get a deep understanding of how different personality types interact.
- Another enormous factor is creating a system for the employees that minimizes the responsibilities, automates as much as possible, and creates a culture where communication is professional and interactions are mellowed through open-minded, understanding personalities. And after being at dozens of companies, there is absolutely a universal construct whereby the leaders, owners, and managers set the tone for the entire rest of the company and the self-worth the employees place on themselves, thus directly proportional quantification of the rise and fall of morale. All team members should show respect and empathy. And upper management needs to exemplify the desire to understand each other and the psychological, sociological factors that impact our mental, physical, and emotional health. Training in this regard is also expensive, but necessary.
- This is also one of the most complex industries and trades around which requires EVERY team member to be highly skilled in their area of production or service. They will also require slightly higher salaries as the success or downfall of a company could come from something as small as trying to cut corners by hiring people who are not qualified to be performing their tasks. However, revenue and net margin tend to make up for this eventually and overall.
- And one MAJOR point I would like to finish on is the following -
- Truth be told, there is no limit to the amount that could potentially be invested that would fail to produce a healthy ROI. It comes down to what the investor wants to risk and how knowledgeable the investor is about this industry.
- An investor who is deeply knowledgeable about this industry will be willing to risk more capital up front for a better return knowing the nuance and provision of this industry. Knowledge recognizes knowledge and reason recognizes reason.
- The more that is invested up front, the quicker the ROI will come and the easier our transition from start-up to enterprise level corporation will go. However, we will make it work with any amount that pushes us into the goldilocks zone of what we can provide. You do not expect a Geo Metro to haul Semi - Loads across the country and trying to provide quality and value without capital in this industry is the same thing.
As far as terms go for investor return rates or ownership percentages, we are very open-minded and understand the nature of risk. It is very unlikely that terms could be presented that we either would not agree to or not be able to make concessions and negotiate to get to where we want to be. We are far less concerned with the short-term profits than the long-term value of the company and creating a place that is revered and respected worldwide. So, if this sounds like it might suit you at all, please do not hesitate to reach out and discuss the options you have or ideas you might be curious about. We are incredibly happy to find solutions that make everyone involved benefit immensely from our labor.
IMPORTANT NOTES -
- At this point in time, we already have potential contracts with a number of large companies.
NOTES -
- The name of the LLC will be JSTS Enterprise, currently we own Green University Engineering, and we will be changing the name and NAICS code or adding to it for the creation of this. We would like an entity that has been in business for a while to make certain things easier.
- Still in the process of updating my LinkedIn profile, websites, etc. If you have specific questions about anything, please ask and we will clarify.
- If you require an in-depth business plan, we are happy to provide one, but we would need to know how much capital is being offered for investment before providing specific projections or P\L statements.
- We have a very deep roster of experts, managers, and associates to provide more than enough support in any areas that might need guidance. We would be happy to provide a list of references and resources.
Coming up -
Shortly I will be linking a web URL that contains a business plan, financials, projections, company information, metrics, images, a portfolio\resume, and any other information potential investors might want.
Thank you very much for taking the time to consider me and read through this. I hope to hear from you and hopefully we can do some business together.