Why Founders raise Money to pay General Contractors

Morning Beautiful People! 

This is the TL;DR version of the obvious when it comes to Founder's raising capital: 

1. The many Founders are raising capital to pay a General Contractor to build their commercial or retail space 
   • All real estate developers are raising money to pay General Contractors for services. 
2. Hence why such a significant portion of startup capital raised go to a General Contractor for construction services 
3. MattBeth Construction would like to be your equity partner to help strategically grow your business

If you're like Elon Musk and believe that your company can only grow with your employees physically back in the office, we assure you that none of your "mutinous" staff want to return to the same boring ole, cubicle gulags circa Q1 2020. MattBeth Construction can help you design a truly modern space that will a) save you an internal civil war and b) make your staff actively want to and compete to reclaim "the corner office" (even if today's corner office is more of an unobstructed view of an internal zen garden or rock climbing wall) and set the stage for your team to collaborate better, faster and more efficiently to increase your revenue and bottom line. 

To put this in greater context, here is an example of a recent MattBeth Construction client who received CHIPs money to expand manufacturing of their US computer chip making facilities. In 2022 they invested $300k in construction design remodels to retrofit their existing building and layout to accommodate new equipment that increases their output, productivity and revenue. For 2023 MattBeth Construction is on track to provide them an additional $1.5m+ in capital improvements to modernize their chip manufacturing facility; which will enable them to increase productivity and overall profits by nearly triple digits. 

This is a mature privately held company worth $20B dollars, who can easily pay to retrofit their building to the new equipment they need to be more profitable with cash. MattBeth loves these types of clients. However, we recognize the real value in the construction and design services we bring isn't in the 30% profit margins of the construction projects we execute. Rather the real value is in converting that 30% profit margin into equity in the company we're performing upgrades for. After all, is it better to get paid a few hundred thousand dollars in a fast-growing, billion dollar company? Or partner with early stage Startups and Founders, converting a portion of MattBeth's construction profits into equity stakes, in a company that you know will be increasing productivity, manufacturing and revenue exponentially because we're building the manufacturing capacity for them to do just that? 

That is what MattBeth Construction would like to do for you: 

• Are you a Founder looking to raise funds to expand your physical manufacturing, retail or commercial space?

If so, MattBeth Construction would like to partner with you not just to do the work on time, on scope and on budget BUT to convert a portion of the sunk cost of construction into an equity investment in the business itself. Here is an example of how that would work for your typical real-estate deal: 

• Your Company is looking to raise $7M to build a 10 unit apartment building in Orlando, Florida to be a mix use of AirBnBs and long-term rentals.  
• Land is $1.75M
• Design, plans and permitting is $250k
• Construction of the building, with five 2B/2B and five 3B/2B units, between 1000 SF and 1300 SF is between $200k and $325k per unit, depending on the final design and fixtures

Of the $7M you're looking to crowdfund, the majority of the funds you raise will go to the General Contractor you select to help build out the property. That GC has profit margins between 20% and 40%. PS - Most GCs won't tell you what their real profit margins are. But in the spirit of transparency, if you've been in business for more than 17 years and keeping up with inflation, your GC should be targeting 30% margins. 

Most construction companies are happy to build you that building, submitting a "competitive" bid for $4.3M dollars and then slowly nickel and diming you to death with another $750k in change orders. At MattBeth Construction we want to partner with you, not ruin your construction project with change orders. Instead MattBeth wants to partner with you to ensure our project is completed on time, on scope and on budget. Why? Because we want to convert a portion of the construction profit margin you'd otherwise pay us in cash, into equity in the property and share with you the same pride of ownership you have. In the above scenario we'd build the project for you at cost, in exchange for two of the units and three extra reserved parking spaces. Don't worry. Because we would design the entire project, we'd ensure there were adequate parking for the rest of the tenants. And of course, like all good partners, we're always open to negotiations. 

Interested in partnering with a GC to grow your existing retail, commercial or real estate business? Call or text Matthias at +1-954-889-7880. We're based in Fort Lauderdale, Florida and service all of the USA east of Texas. 

(DISCLAIMER - The owner of MattBeth Construction is my brother Matthias Williams and for the last 17 years I've been MattBeth's CFO. Along that journey I learned the #1 thing that anyone in the construction business should be aware of. Your actual business isn't construction. Its finance. Hence why since 2016 I've been a crowdfunding advocate, pioneering new and innovative approaches to the nexus of where I can help Founder's who need capital access it....to pay for remodeling, construction and tenant improvements. So please be aware, this isn’t altruism. Its just stating the simple fact that if you’re looking to grow your business, by using investment crowdfunding, a good chunk of that is going to go to a General Contractor. I’d like MattBeth Construction to be your GC. Not only for your first $150k dollar crowdfunding campaign to move into and remodel your very first retail or office space but for your entire journey as you grow and scale; expanding to 500 locations Nation wide.) 

For more information on how MattBeth Construction is laying the groundwork for helping Founders and Issuers literally expand and grow their business email matthias@mattbeth.com. Good luck! And looking forward to helping Founders grow and expand their business.