Forums: Discussions for entrepreneurs and small business.

I have a new website idea and have started creating concept designs and everything. It`s a completely new idea and a lot of people like the idea. It could be something that could be huge in the near future if I get enough support. Though the thing is I don`t have any money at all to get this thing going. I have created partnerships with a couple people to program the backend.

I`m also speaking to the domain owner about it. He asked me if I had investors backing up the project and that kind of hit me. Is there anyone here who could assist me on finding investors without having to pay anything.. I really don`t have any money at all right now. Even if there is anyone who is willing to help out out with the site. I appreciate it. All partners get a % of future compensation.

What would you guys recommend? I was thinking maybe starting out small. Just use the programmers I have now to get everything working then upgrade the site when more people start signing up. I`m new to this whole investor type stuff.

Vincec,

As I`ve said several time before on this forum, I am opposed to paying to services with equity, so I won`t belabor that point.

It`s tough to start and build a business with no money. There are many things that are critical to the long term health and success that can`t be accomplished without some capital - so my advice is determine how you are going to acquire some funds before you begin the business.

 

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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
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Vinec,

I`m curious about the need to purchase a currently-registered domain for the new company.

Do you feel the domain name you are wanting to purchase is absolutely important to the new company?



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Avin Kline
AvinKline.com

I agree with bvmike. Especially when it`s web based, bootstrapping is the way to go at least until you have something to show investors. I`ve found it difficult to explain the full vision of a web product to investors & users until you actually have something to show them.

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Avin Kline
AvinKline.com

Bootstrap it, you`ll spend a lot of time looking for capital that you most won`t likely get.  Very few people are doing idea stage companies now.  You`ll hear the word traction often as a requirement for funding, and its true. 


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Rogue CFO
Virtual CFO helping launch startups.
RogueCFO.com
Rogue CFO On Twitter

You would have to put some of your money to at least prototype the concept.
Put at least few thousand dollars , hire some part time developer and start building the product.
Alternatively learn the programming language , code your self and get the html`s designed by someone else.

We have build the web based assessment solution geekEvaluation
from our own money.
Though would develop a prototype and then go for funding.
But now I have developed the first version , tested it and gone live.
Will look for funds when I get some customers.

I have also posted some information on how to start the development here
Tools For StartUp - Part1
May be this could be of some help

Like the previous posts have said, bootstrap it. You need to show that your website is making revenue before anyone will invest, particularly in the current economic climate. Work on the project part-time along with your tech guys until you can start paying yourselves. Also, get something in writing with everyone who is working on the project about what % shareholding or revenue they are entitled to.

Right now, the only money going into start-ups is to help them scale and not to help them start-up. You have to bridge this gap by using your own funds and sweat equity.