Forums: Discussions for entrepreneurs and small business.

Hello, I am a 22 years old, just out of college and I have developed an extensive business plan for an unique person to person online marketplace aimed at a specific niche with some exclusive features.  I`m pretty confident about the potential of the business model I have.  My next step is obtaining startup capital.  What is the best direction for me to head in.  I`m already aware of all the options available, I`m looking on some advice from some type of past experience you may have had on what is best for me.  I understand my age and lack of collateral will prevent me from getting a loan, my experience will make it difficult to convice angel investors, and bootstrapping is not much of an option considering the people I know don`t have the money either.  Any advice would be greatly appreciated.  Thanks

If you believe you can get started in stages with this project, I would recommend this. Because you have no collateral, you may redo your business plan based on a structural expansion starting from something small and barter out your growth for an exchange for skills you have to complete this project.

Based upon your post, I`d say you need to get Capital Ready before you embark on your quest for capital.

One step I`d consider is to put together a "team" that will strengthen your position with any capital source.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

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Unfortunatly, the 140,000 is  the startup I need for the first stage.  I can`t break it down anymore than that.  A majority of that is to fund the designing of the databases that are neccesary to build this website.  Without the databases, the site is useless and inoperable.   


What will this advisory board need to consist of.  How do I build such a team. 


I am considering on applying to online angel investor networks by submitting my business plan.  I am a little skeptical of sending my business plan as there is nothing like my idea currently offered on the web.  In an effort to protect myself from the idea being taken by investors without me, I was thinking about using my credit card to make purchases such as buying the premium domain name, and registering the business in my state.  Is this necessary?

To clarify my previous post, there is more to raising capital than having a business plan. There are some steps you should take before posting a capital request on line.  For example

1. The more "value" you build before the capital acquisition - the more attractive can be the terms of the deal.
2. If you have a unique idea - you need to determine how best to protect it and put that in place.
3. Executability is a core ingredient for investors, so your "teams" should convey the message that they can get it done.

 

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

What are methods of protecting an online idea?

The basic ways of protecting your IP include  Patents, Trademarks, Copyrights and trade secrets.

Generally, the optimum solution uses the best of the above - often in combination.

 

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Have you tried reducing potential startup costs?  My current project is using programmers overseas from India and I am pretty sure that is dramatically reducing costs.  You might want to look into similar cost-saving opportunities.  Be warned that there are certain negatives to this as well. 

Also, if you can get startup costs down from $140,000 to $50,000 you are still going to have trouble getting your money, but I would suggest at least trying this before giving up or thinking $140,000 is the final figure.  Also, it would be a good idea to create some surveys or questionnaires if you haven`t already done so in order to attempt to prove the validity of your concept.  You may also want to seek investments from family and friends before seeking venture capital and other methods which could dramatically decrease your stake in the company.

Email me if you have any questions or comments - rcavezza@gmail.com

Robert M. Cavezza



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Robert M. Cavezza

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