An acceptable ROI for potential investors?

Would really like some guidance, particularly from anyone that is looking to (or can eg: brokers) invest capital.

I know this is a property centric forum, and I have been a member for quite sometime. My property ambitions have taken a 2nd priority lately, as I have focussed all my attention into building a business, and then the plan is that with profits from the business, then being used to kick start my property investment portfolio.

I have written the company business case with the value proposition and the 3Yr revenue & EBITDA forecasts. All financials aspects have been considered, “except” for one outstanding area.

My cashflow must take into account debt repayment. I have crudely done this, but I am really trying to understand, what are some of the basic principles would be investors, are looking for in terms of ROI and how is this correctly accounted for when I am trying to forecast cashflow burn. I figure, in this forum decisions like this are made daily in terms of ROI for property investment and I too one day will be contributing in this arena, but I must build my business 1st if I am to get to my property investment goals. Does anyone have investment experience, but not so much toward property who can assist?

The business nature is high risk, but big gain. We have researched the proposition and we believe our forecasts, that whilst aggressive, are reasonable and I am happy to exchange our investor pack to those who are interested, or who can help me answer the above ROI questions. The business has a unique offer to consumers, which global trends identify this working in other countries, so it is only a matter fo time until the concepts hits Australia. However, our proposition is hard to replicate.

So, what does an investor look for? For example, if the business is high risk, do investors want:
– 15 – 40% YoY return (or more) and their money back in 1 year, or 3 years?
– >51% of equity of the business? (ie a Venture capitalist)
– will invest, but will only do so if other parties share the investment risk as well?

Forecast cumulative revenue over 1st 36months (3Yrs) is an solid $26M – 30M. The business asks for $250K start-up for a prototype / trial to run over the initial 3months, and then a full service offering requiring another $1.5M capital. Also: 50% of the $1.5M would be financed by a banking institution. Ongoing capital would be required for Years 2 and 3, but we can source other revenues streams from Yr 2 onwards to assist here.

If anyone can assist, your advice would be much appreciated. Apologies thats its not directly about property, but I figure this forum has a good bunch of people to start asking.

Would appreciate you views and as I said, happy to end through details if people are interested to find out more.

Regards.