I`m adapting the business model of two very successful, national, digital publishing companies. One started up with $250k, the other with $200k; the first happened with friends-n-family money, the second with angel money.
Here`s the problem: my numbers are not reaching anything like those figures. I`ve added in every single thing I`d love to have that is not necessary, and I`m still coming up at least $100k less than these other ventures evidently required.
The only thing I can figure is that there are a few things I don`t need to buy:
- Advertising — the basis of my own marketing strategy is to make my subject matter a news story, and leverage numerous contacts I have with actual journalists as a result of my recent journalism undergrad work & previous history with the subject matter (I`m already a "known quantity" in the niche I`m targeting, at least to a degree). Advertising is nonexistent for the first couple of implementation phases.
- Web & bulk email development — I`m doing all this myself through the startup phase. Total cash outlay for the website will be about $36 for the first year; paid bulk email delivery will vary, but won`t happen for the first 6-9 months or so and will cost $5 + $.01 per recipient per weekly campaign.
- Original fine art illustration — also will do this myself. I`ve granted myself all the art supplies of my dreams but since I work in dry media it`s still less than $300.
Also — if my media contacts, prior history, web development skills & illustration skills really are going to save me that much in startup costs, can I somehow record that as owner`s investment (or something like it) in my pro formas?
Any insight is much appreciated, thanks in advance.
Addendum: I`m also saving a boatload of money on rent & utilities by starting up from Nowheresville, PA, rather than New York City as these other two ventures did.