Hello,

[hxcgaming]

I tried to send you an email but it got sent back and said delivery failed, so I thought I would post it on here
Dear Chris,

 I stumbled across your page while researching on how to open a LAN center for myself. It was a great informative page! I want to thank you for the wealth of knowledge you put out for everyone.

 The reason I am writing this is because I am interested in opening a LAN center in St. Louis Missouri. Specifically Chesterfield, Missouri. I worked in a LAN center before, unfortunately it was closed down to poor planning, no advertising, and various other reasons. My coworker from this previous LAN center want to go into business with our own LAN center.

 I do believe I learned enough on the business side, as when I was hired at the aforementioned LAN center shortly after my hiring I tripled the monthly income of the business. I opened a tech department in our store, computer sales, I branched out to advertise with other businesses. The place would have been sustainable and eventually profitable with better planning by our owner.

 The trouble I am having is locating investors, or any kind of funding to start my center. We have our business ideas mapped out, what were going to do how where going to do it, how we plan to be profitable etc. etc.

 I was hoping that you could lead me toward some sort of lender, or venture capitalist, private investors or any kind of funding really.

 I have a dream to open a video gaming center and expand gaming to make it a community, not just people sitting at home alone playing by themselves, but to sit with friends and game happily. All I need are the funds!

 Any advice tips or hints would be amazing!

 Best Regards,

Mike Bernstein


You can Email me at Mikebernstein@live.com as well

Thanks in advance!

[Deeds]

Makes alot of sense that my email is broken I haven't gotten any email for a few days.  Its fixed now.

First time I started out I had an Angel Investor and I used all the money I had saved up in my personal savings account.  Finding investing for an idea such as this is an extremely difficult endeavor.

I started out by asking Family.  I had family members that donated as little as $250 bucks to as much as $4K. 

I tried several websites that allowed you to post a general idea of what you were starting in an attempt to attract investors. (in the long run that one was a bad idea, I had alot of flakes contact me)

If you own your own home you can take out a personal loan and use your house as collateral. (I know several business owners that have tried this method)

I even used credit cards to get started.  I spent months search for cards with the best rates and promotions like no interest over such and such purchase for a year.  And then I paid them off before the year was up.  I at one time had 5 credit cards with 5K credit limits.  It was actually what I used to expand from my 8 computers when I first started.

I wish I could be more helpful.  But there alot of options out there it just how much control over your own business your willing to sacrifice to have someone lend you the money.

Also welcome to the forums.  Hopefully the community will grow in size and we can all help each other with various ideas.  Keep in touch with your progress

-deeds

[hxcgaming]

 What is an angel investor ?

[Deeds]

Angel Investors are pretty much like venture capitalists.  But they also assist in advice, contact, and money.  Angel investors usually also invest in the person's idea not their "credit worthiness" like a bank would.

Basically a term for someone who has too much money, alot of time, and likes to help other businesses with a decent return.

-deeds

[hxcgaming]

How was your experience with them?

Are they worth their money?

How much do they charge?

[Deeds]

Well my Angel was extremely no-obtrusive his stipulations were he was always consulted on major decisions for the company and he interest in the company until I bought his part out.

The method for buying him out so I had sole control was negiotated in his contract with me.
For when you relinquish his control he had to see 110% on his investment over 5 years(Meaning I paid him back what he invested with 10% interest compounded annually).  Or to be "bought" out early he had to realize a 200% return on his investment. Meaning I had to pay him back what he invested double.

The sticky situation was if I couldn't meet either goal in 5 years he would get 100% of the companies assets.  I bought his investment out in 6 months from starting my first center.

My angel was Extremely out of the norm for how he wanted to invest and it could have been extremely dangerous to me (I could have lost the entire company to him).  But that's usually the game you play when your working with an Angel.

-deeds

[rxp darkbox]

So the angel could be of real help, or he could help you screw yourself! I would think that would be a little risky, but also seems like a weird way for someone to do business, kind of nice actually. I could see why most people wouldn't wanna do business like that though. A very stand-off approach. nice

[Deeds]

So the angel could be of real help, or he could help you screw yourself! I would think that would be a little risky, but also seems like a weird way for someone to do business, kind of nice actually. I could see why most people wouldn't wanna do business like that though. A very stand-off approach. nice

It really does vary from angel to angel.  I tried to be an angel investor at the third center I was involved in and it absolutely sucked to be the investor. 

-deeds

[rxp darkbox]

well... I guess if you were the investor who invested in YOUR location it didn't. Just is sheitty when you get idiots! but you said you paid out your Investor in 6 months???

Was business just that good, or did you take a loan out to do it? that seems pretty impressive!!!

[Deeds]

Business was that good (Remember I started opening day with ONLY 8 stations)I paid him out with center earnings and took a loan for about 20% that I didn't have.  Was alot easier being liable to a bank.  My investor was definitely an angel he gave me free reign for what I wanted to do.  But I wanted "MY" business and that's why I worked so hard to pay him out.  His investment wasn't that "huge" either.  My first center was really out of the norm, I was lucky to make it starting with 8 stations but I was a social butterfly if wasn't for my add-on purchases my pc/network repair (That I eventually dropped doing) I wouldn't have made it.  In fact I knew after the first month I HAD to have more stations so I used credit cards to buy more (Stupid move I got ate in fees but I had an idea that was showing success and I had to feed it more nom noms to keep growing)

-deeds

[rxp darkbox]

love it! "nom noms" well you knew what you needed! I am hoping to find the MLG niche and just have hardcore sheit going down all the time, but I don't know how out of the norm that is. I know that MLGpro.com has a forum that I used a while back to get a few "friends" on XBL in my area, most of the people I met up with and had lunch to concoct Halo 3 strategies, but we went to a mexican restaurant to do it, if there were a game shop anywhere near, we would've gone there and LAN'd to figure it out... so I'm hoping to find THOSE people, and the anyone else is GREAT

[Deeds]

love it! "nom noms" well you knew what you needed! I am hoping to find the MLG niche and just have hardcore sheit going down all the time, but I don't know how out of the norm that is. I know that MLGpro.com has a forum that I used a while back to get a few "friends" on XBL in my area, most of the people I met up with and had lunch to concoct Halo 3 strategies, but we went to a mexican restaurant to do it, if there were a game shop anywhere near, we would've gone there and LAN'd to figure it out... so I'm hoping to find THOSE people, and the anyone else is GREAT

hardcore mlg players are great when it comes to consoles.  When it comes to hardcore players on the PC, they can be a pain sometimes.  In fact too keep my tournaments fun and let my average players do PC tournaments if someone was MLG or just down right hardcore I would talk them into judging and helping with the tournament rather then being IN the tournament because an average player "WANTS" to play in a tournament they have realistic chance of placing in.  They don't want to play in a tournament with a ringer.(Someone who lives and breaths the game)

So to be fair I would have a hardcore tournament every 3 months that was invitational to winners of the standard tournaments and let the "hardcore" players play in.  The prizes were larger and the turn outs were huge.  I would usually sell out all station seats and then would sell 10-15 additional "spectator" seats.