So a venture capitalist has just written you a check for $1 million to start a coin company...

MrEureka

What's your plan?

LotsoLuck

Hire BNB?

WinPitcher

Run off and live on some Island of course.


Steve

SanctionII

Buy low, sell high?

Stuart

First, I'd cash the check and deposit the money!!

ponderit

Oh God, not again!

First I'd hire somebody that knew what the heck they were doing...

Type2

Start buying coins.

jdillane

C'mon folks. Give your best advise. This could well happen to one of us...

OneCent

A million bucks ain't what it used to be so....


My market niche would be a B&M that targeted working professionals (and others) that spend on average $100 - $500 per coin, some more. Since Center City Philadelphia is currently sans coin shoppe, that would be my locatoin. I would lease space nearby the business district - - probably somewhere around Rittenhouse square. Probably would also seek the resources of an experienced numismatic buyer until I learned more about the wholesale side. Inventory would be higher grade slabbed Morgans, Walkers, SLQs and other early 20th century classics. I would also take a portion of the money and buy gold and silver bullion to supplement the numismatic component of the business. Web presence is a must so would hire IT consultant to contstruct and maintain top-notch web outlet. Would employ an experienced numismatist as an assistant to help run the operation.



I'm sure that there are other things that I would do as well but this is the cliff notes version. What else does the VC want to know before I get the check?

AUandAG

I'd open a shop in a major Las Vegas Strip hotel. Hire a buyer for shows.
And make a fortune selling "pieces of historical Nevada gaming"

Yep, plenty of built in security and plenty of traffic with money!

bob

PS: will you fund me?

Justacommeman

350K in bullion
350k in mostly 20th century type coins in investor grades
100K start up costs
200K in cash

MJ

DUIGUY

1) low end coins that are all there grade wise with eye appeal. (not easy to do)
2) Offer mid grade rarities with eye appeal.
3) If you have a custumer base to support this, 5K pieces to follow.
4) Anything after the 50K base price, I'm just gonna have to call Laura.

How did I do so far?

Musky1011

give it back to him or her

debt to other people sucks

notwilight

Spend $.5M on inventory.

Spend $.5M on a professionally developed proposal to get $5M more.

--Jerry

COINB0Y

Buy a Bank for $500K

Deposit the other $500K in my new Bank.

Lend out 10X ($500K) or $5,000,000 to Bullion Coin dealers @ 7 % interest.

Collateralized thier inventory (now moved to my Bank Vault for safe keeping) @ $600/ $1,150.00 / 1 oz. of Gold.

PayBack VC at end of Year with paper money received from selling a little repo Gold.

Barndog

<< <i>Buy a Bank for $500K

Deposit the other $500K in my new Bank.

Lend out 10X ($500K) or $5,000,000 to Bullion Coin dealers @ 7 % interest.

Collateralized thier inventory (now moved to my Bank Vault for safe keeping) @ $600/ $1,150.00 / 1 oz. of Gold.

PayBack VC at end of Year with paper money received from selling a little repo Gold. >>



don't forget all that freebie "bailout" money that will be coming your way if you are sure to mismanage the place.

MikeInFL

<< <i>What's your plan? >>



Hire good help.

19Lyds

<< <i>What's your plan? >>



Hire Saintguru to work for me so he could triple my money in less than a year!

Ahrensdad

Off the top of my head…Well, first I would decide what type of dealer I wanted to be; wholesale or retail. I would figure out what type of inventory I want to sell, and how to find it at the right price. I’d then spend time developing sales channels. In doing so, I would spend money on building a good user friendly web site and paying a professional to not only do web search optimization, but analytics. I would find the best location that made sense for my style of business. If retail, a high traffic area, preferable in an upscale part of town. If wholesale, that a small safe office building. And the work begins….
Andy, did the check clear yet?

MikeInFL

<< <i>What's your plan? >>



Start taking drugs, move to Costa Rica, and marry two sisters?

291fifth

I call them vulture capitalists.

RYK

I thank TDN but inform him that I need an additional $4M to do it right.

ColonialCoinUnion

<< <i>What's your plan? >>



My plan would be to tear up the check, say no thanks and never borrow any money from anyone or take on any investors.

TwoSides2aCoin

I'd give a hundred grand to Jay and ask him what his secret was to the "World Series of Coin Trading". Then with the other 900 G's, I'd put his methodology to work.

tradedollarnut

I'd decline. I can think of a million things I'd rather do than work with the collecting public. Some of the stories that I hear from here and elsewhere make me wonder why anyone would want to...

coinguy1

<< <i>I'd decline. I can think of a million things I'd rather do than work with the collecting public. Some of the stories that I hear from here and elsewhere make me wonder why anyone would want to... >>

Who said you'd have to work with the collecting public under this arrangement?

JZrarities

Start an Auction company.

Use the money for floor space, servers, staff.
Design killer online auction software.

First Auction totally free to consign and buy.
(go back to 10% sellers fees)

jdillane

My means are relatively modest but having had a VC ask me if I could make a go of it in 2006, I declined. No regrets either but I'd have to give 150% to it and cannot give up my day job. And, it wasn't a formal offer but could well have lead to one. Knowing people with incredible wealth makes me smile at the American dream and the potential for those willing to take the risk.

Too bad the future has been mortgaged for our kids. The American Dream is increasingly looking like a nightmare.

Longacre

Longacre would use the check to light his cigar, and then move on to working with VC's with some real money.

Gemineye

I've got my own stickers....!!!.....

metalmeister

Sounds like the State of Ohio Pension Fund

ocon4008

<<Start taking drugs, move to Costa Rica, and marry two sisters? >>

Twin sisters Mike.

Me, I would wake up and start a pot of coffee.

BigMoose

In this market I would use the money to buy big Gold deals and flip the deals quickly.

theboz11

Convert it to Low premium gold coins and wait for the consequences to hit the fan from all the spending this decade

morgansforever

I would immediately open a shop and start buying bullion, coins, jewlery, etc..
My buy prices would be better than anyone in the area.
scott

lathmach

<< <i>What's your plan? >>




Cash the check, get airline tickets to a foreign country,..... bug out.

Ray

PonyExpress8

I could see a wealthy collector perhaps doing something like this, basically hiring a knowledgeable numismatist as a front man in a partnership of some sort. This has happened more then once. With the margins involved in the coin business a true venture capitalist would not have an interest in funding a coin company that I can see.

Further a lot of knowledgeable dealers would not want to work with someone else that has an ownership interest like a venture capitalist would demand either. Most dealers are pretty independent folks.

So while I find the scenario implausible, any such venture capitalist investment today would be best used to establish a small bullion buying/selling operation for at least part of the funds.

There are different ways to go such as an upscale B&M location, staff to include an internet operation, etc. I might even just go to a total wholesale operation. Many of the largest dealers that would like you to think they are retail oriented dealers actually have the vast majority of their business wholesale.

PTVETTER

Some have been on a cruise ship that is ok, but

The worst ship to be in is a partnership

mgoodm3

I'd buy lots of cameras and lenses.

dogwood

Specialize in target areas for which I can add value through knowledge. The last thing I'd want to go to work to every day is a safe full of high grade common plastic that I had to move. With a steady group of long holding set builders as clients my buiseness would be enjoyable for me and probably liquid enough to satisfy the investor.

Broadstruck

PM me for my bank wire info!

My luck it would be a venture capitalist from Nigeria!

ProofCents

I'd first make sure the check was good

Lakesammman

No thanks - more fun collecting.