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Taboo Business

BillhBillh subscriber Posts: 1
edited September 2008 in New Member Welcome
Taboo Business
Hello all, for the first time in a long time I am feeling frustration based on being in the Business we are in.
We run a business that is looked down on by most, one my wife and I can`t discuss with our friends or family. Our associates we meet related to our other business, rental properties, etc.
Now mind you what we do is completely legal, ethical, and well, by our standards moral.
We have been in this industry for almost 14 years and it has always paid the bills and put one of our two kids in college and made us a lot of money.
Our industry is probably one of the most profitable in the world, some estimates as high as 100 Billion, but more realistically 5 to 10 billion in the U.S.
We have been successful at providing services to other people in our business and consulting is now a large part of our of our overall revenue base.
We have helped many small entrepreneurs find small funding for their projects.
Now we are looking for some substantial investors and partners and its like we have the plague.
If you haven`t guessed by now we produce Adult content, yes Porn, Dirty pictures and Movies.
Not Kiddie Porn, exploitive or demeaning content, nor do we do anything that involves dangerous activities or unhealthy practices.
We are a safe, respectful, successful family owned business.
Our piece of the industry (Midlevel wholesale content production) is dying. With competition from the Eastern Europeans, and the Asians we just can`t compete any more. We are down 40% from last year and I see it getting worse.
We just can`t compete with a guy in Prague who`s cost of doing business is so much cheaper than ours.
He has the same equipment as us (We both purchased our stuff of the Internet) but his costs for Talent are 90% less than mine.
Where I may pay $300 U.S. an hour he pays perhaps an equivalent of $5 or $6 an hour.
And we both sell our product on the same market and now to the same people.
This is not a new story for American business nor is it something we didn`t see coming.
We are ready to branch into a new and exciting area of our industry and have started looking for partners and investors, shoot we are even having trouble finding qualified employees.
Don`t get me wrong I can find plenty of guys to come check out our business, but most are a waste of time and energy and many turn out to be just creepy.
We have come to the conclusion that we need to hire someone to assist us in our search for funding and are trying to find some sort of broker but are leery of spending much money up front.
We are posting here to see if perhaps anyone has any ideas on were to find a broker or funding advisor that can help us find funding for our new venture.
Thanks for taking the time to read our story of woe do to foreign competion


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    BillhBillh subscriber Posts: 1
    Hi Craig,
    Yes we are aware of the down sides of our business, the challenges involved, and have been planing for a year or so our exit strategy and our new plan.
    We have been in the Adult business successfully for 14 years and with revenues in the high 6 figures.
    We are moving into the Internet TV business.
    Live streaming video with interactive hooks to a dynamic web site, VOD, Interactive participation for our paying members via 2 way video links or one way feeds with a telephone pay per minute system for non members.
    We have a comprehensive business plan, revenue projections, market summaries, technical description, Etc.
    Our problem is finding  qualified investors to work with, who will take us serious.
    That`s why I am sort of looking for advice on working with some sort of a broker or Middle man and how to qualify or vet them as well.
    Any ideas or comments from any one would be helpful.
    On a personal level most of our capital is tied up in real estate or other not so liquid assets.
    We are in a situation were we may have to continue with the old to fund the new, not our ideal situation but due to the inability to raise cash,  the kind of cash we expected would come from our assets, go figure huh ?? it might be like working two jobs like lots of Americans are doing now days.
    So to restate the question I was wondering if any one has any advice on working with some sort of broker or middle man that can help us find qualified investors.
    Thanks Bill
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    onlinexchangeonlinexchange subscriber Posts: 0
    Have you talked to the folks out at adultvest? I believe that they still meet on the last Wednesday of every month in LA. Investors are hard to find for every industry now, but you have an attraction that many industries just cant compete with. Being part of a shoot or the chance to rub elbows with starlets ($150.00 a plate with drinks and dancing afterwards) can often be a fundraiser for many people. If distribution is your issue maybe you should look at mobile or the way that the market in China is opening up. It`s a different game but many of the rules are still the same. They have billing options there we in the US still have not embraced.
    Offshore competition is no different than what you get from tube sites and home cams. The money will always follow if you find what has not been done to death. I know YNOT is always working on new ideas as is GFY. I hope this helps. - James
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    BillhBillh subscriber Posts: 1
    Well that was the original plan but now we have suffered like every one in the housing market. We don`t have the kind of equity we had in any one place any more.
    Also we are in Az. in an area that prices were driven crazy by speculators now we are suffering the severe down turn, other than making it difficult to refi this has no real effect on us since we are in our properties for the very long term but its sad we can`t raise the funds right now like we would have liked to.

    @onlinexchange ; Thanks we have tried Adultvest but since we have the majority of funding and not looking to give up much control for that last 20%  or so of our funding we haven`t gotten lots of response.
    Carl I am having trouble getting thru the door, I am getting told they are not interested in Adult/Porn projects regardless of the ROI.
    The ones I am getting meetings with turn out to be more interested in other aspects of our Biz thus the need to find a middle man to help qualify those that express an interest.

    Does any one know anything about brokers or funding Middle men?
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    onlinexchangeonlinexchange subscriber Posts: 0
    Drop me a PM with what your looking for and will to give up, if you need an NDA send that as well. No promises as I have been out of the game for awhile but I will make some calls to reputable investors with deep pockets that are more concerned with ROI than social stigma.
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    shane68114shane68114 subscriber Posts: 0
    There is an accounting firm that has a niche in the adult industry, I think they are located in Florida, but they may know of or have some clients that are not averse to your business model that may be looking to diversify their asset holdings.


    I don`t know these guys at all, but it may be worth an inquiry.

    Shane Eloe
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