Post: #1

This is a thread dedicated to getting funding for projects and starting businesses. I know a bit about the topic and will put my two cents in soon. But first wanted to ask the community of ever knowledgable elders what their thoughts are on getting funding for starting or expanding an online business whether to take it offline pr to gain more tools or whatever. As well as techniques for applying for getting loans if you are young. I know my fellow aspiring young entrepreneurs are curious as well.

Post: #2

business plan
customers

Post: #3

(10-31-2012 12:06 PM)Black Quixote Wrote:  This is a thread dedicated to getting funding for projects and starting businesses. I know a bit about the topic and will put my two cents in soon. But first wanted to ask the community of ever knowledgable elders what their thoughts are on getting funding for starting or expanding an online business whether to take it offline pr to gain more tools or whatever. As well as techniques for applying for getting loans if you are young. I know my fellow aspiring young entrepreneurs are curious as well.

Depends on what you're getting the money for, and who you might be getting it from.

In short, if you own a factory/shop that makes physical things, and you export - people are running to give you money.

If you make something that could be the next google/facebook, you need to relocate to NY or Silicon Valley (Argentina or Singapore)

Typical avenues

1) SBA - usually a dead end. You need to be a going concern, and typically a store/factory that makes physical goods. If you're a physical store with an e-commerce presence, maybe.

2) Your local bank - best way to get funding is to write a rock solid business plan. (and this requires lots of research) Don't start with your local bank, come up with 4-5 banks that you're gonna test run your presentation on. Get feedback when they say no and tighten it up, until you get to banks you think you can win over.

3) Angels/VC - There are entire industries devoted to getting your idea/business in front of people with real money.

At the local level, i'd focus on chamber of commerce, or network @ your local university.

4) If your product is kinda "cool" - indiegogo and kickstarter are great tools, but whatever it is you're trying to do has to be 1) cool, 2) your video has to be professional. The key to both is building that social media following.

5) I like the "infomercial model" which you can replicate online
- build an audience/build traffic
- show product in photos and video, give spiel
- call now
- product delivered in 4-6 weeks

0) But what i've learned after dealing with various businesses

- Don't take a loan or give away equity
- If you have to choose between a loan and equity, taking a loan is a better option.
- best friends and family members will sue each other. A contract doesn't stop a lawsuit, but at least it defines the roles and duties, and it can help in a lawsuit.
- it's best to start small and self fund as much as possible.

This way your customers are funding your production.

There are tons of ways to skin a cat though. I look forward to what everyone else has to say on the topic.

Post: #4

(10-31-2012 05:45 PM)WestIndianArchie Wrote:  0) But what i've learned after dealing with various businesses

- Don't take a loan or give away equity
- If you have to choose between a loan and equity, taking a loan is a better option.
- best friends and family members will sue each other. A contract doesn't stop a lawsuit, but at least it defines the roles and duties, and it can help in a lawsuit.
- it's best to start small and self fund as much as possible.

This way your customers are funding your production.

Why is taking a loan the better option?

And what do you mean by your customers are funding your protection?

Post: #5

(11-02-2012 12:52 AM)chakri Wrote:  Why is taking a loan the better option?

And what do you mean by your customers are funding your protection?

1) Loans are typically finite, Equity isn't.

So if it fails, you pay back the loan, and if things get really rough, you declare bankruptcy.

If it wins, you're paying your equity guys forever.

2) Protection -> production

Post: #6

Going the equity route is not always a bad thing. If things go belly up you won't be on the hook for the loan and don't have to declare bankrupcty.

At a young age you are more likely to get an equity partner than a loan. If you don't have any assets and very little credit history then bank will have a hard time funding you.

But personally I would go the debt route if I had a choice between the 2.