PEER STARTUP FUNDING POLL

Joel  and SuN People Everywhere,

I've looked through the Funding Step and what would really catch my interest is a general understanding of what other members have done (or are doing) for their funding.

Individually we can relate to some members because their businesses resemble our own even if only remotely. Together, as a whole, we can all learn from the paths others have taken to receive their funding.

I'd like to propose a voluntary collection of basic funding information from members. It could even be done anonymously.

As the data is collected, it is possible to visibly graph more and more detailed accounts of how different business types were able to fund their ventures. This may allow others to direct their funding efforts in ways that have been proven to be the most successful.

Keeping  things simple this should mostly be a quick clickable form with simple questions that members should be able to answer immediately without calling an accountant or digging up their tax statements.

This is just a first stab idea Joel. I could be approaching this idea from the completely wrong direction of course! 

The initial questions that first come to my mind are:

What funding stage are you currently at for your startup? Note* If you have multiple businesses and are at various stages please answer for only one at a time.  (Check Box )

1) Early business planning with almost no accountable expenses

2) Planning for funding and currently primarily self supporting

3) Have received some funding using one or more of the techniques disscussed: (Check all that apply)

Bootstrapping

Debt Financing

Grants

Friends and Family

Angel Investors

Factoring

Venture Capitalists

4) Have received funding but have not yet been able to return a profit to investors

5) Have received funding and currently and working toward paying back investors.

6) Have paid off original debt completely

7) Funded Startup without any outside funding

Type of business needing funding? ______________

Rough guess total amount of required to make startup profitable? (include all personal and outside funds)   [Insert drop down list with basic dollar amounts] 1k,5k, 10k, 20k,30k,50k,75k100k,$250k,500k,1M+, 2M+ 5M+,10M+,100M+

Rough percentage of outside funding required for your startup?[Insert drop down list] : Less than: 10%, 25%,50%,75%,95%,Close to 100%

If I had a chance to do it over again I would have changed........(complete this sentence) [Insert text box]

Additional Comments: [Insert text box]

___________________________________-

So that's all I have at this point. It's short, simple, not scary and yet says a lot about what people have done for this critical step.

Whaddya think?

~Eric

eric,

what if we added the ability to add this information (great information, indeed) to people's profiles?

rich

Rich,

That would certainly work. Eventually I'd really like to see a pie chart developed that shows in simple terms where the money came from for other people here. Gathering the information in the profile would be great and as I said before, it's optional. The pie could be updated quarterly (or instantly if the script was designed to do it) to reflect the most recent values entered

Thanks for the response Rich.

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Get creative, as mentioned in this topic, to seek funding is so critical point to be emphasized.

One other legal source of funding is your own IRA/401K/SEP (Who said its too risky to venture into what you believe in with your retirement funds!?). There seems to be a legal way to fund your C-Corp using your IRA (Pls. do check with your attorney).

To make your dream a reality, as many stories go, one should be ready to extend one's financial resources to the max. (easier said than done!) in the spirit of entreprenership and one's dream!

(My thoughts only!)

To your success!

My intentions are to use creative funding,  after all why should I give a way a big portion of my soon to be business if I can do it on my own,

I have never seen it  explained by anyone  But Im sure  someone has thought of some version of my idea of creative fundraising, or possibly the whole thing and I have never ran across it.

If I am to start a business,  my business will be of value to other businesses, some how  some way,  whether it is that I purchase from them,  or I am going to create extra traffic for their business to benefit from.   This benefit will have some value and I figure a good business person will indentify they value I am going to create for them and thus should be willing to give me some creative fundraising dollars.

Mike

Mike,

The concept that your business will be of value to other business is an interesting one. You'll probably need to be very specific about that "value" when you approach these other business people.

Also, I suggest avoiding the word "give".

When you bring in capital by selling equity -you aren't giving it to them. It's an exchange. Hopefully of equal value (their cash for your equity)

So when you approach business people, I'd propose an exchange where they receive value in return. Maybe advertising or more prospects, etc.

Robert Johnson