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Investors needed for website

     
10:53 am on Jan 6, 2005 (gmt 0)

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I own a company that is launching on the internet later on this year and bascially i need to raise
at least 5000 if not more for advertising etc.

As im only 19 getting money from the bank is not really an option and because of my age no body else wants to touch me unless i own a house etc.

My question is how do i go about finding the 5000?

I would be willing to sell part of the company if it
meant rasising the required funds!

Your replys are all very much appreciated.

regards adam.

11:30 am on Jan 6, 2005 (gmt 0)

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have you tried the prince's trust?

[princes-trust.org.uk...]

good luck!

12:55 pm on Jan 6, 2005 (gmt 0)

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as im in full time employment they will not be interested.
1:32 pm on Jan 6, 2005 (gmt 0)

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i need to raise at least 5000 if not more for advertising

No you don't you need to think smarter.!

You don't need to spend anywhere near that amount of money on a "new" web site especially when you are borrowing it, what happens when the money has gone and you have not reached your startup goals but you still owe your bank or lending source the full amount plus interest.

learn the art of seo, submit to search engines and directories get other sites linking to yours etc etc, from the postings in your profile you have been given links to guide you in learning more, read these and learn from them, ask question but just don't expect anyone to give you every last bit of information

just remember with advertising nearly half of what you spend on advertising is wasted but the trouble is you don't know which half, with seo all you loose is your time but the more time you spend the bigger the returns will be

Good Luck with your new site

1:33 pm on Jan 6, 2005 (gmt 0)

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ignore what ncw164x says above, and reply to the email i sent ya ...

Shak

2:00 pm on Jan 6, 2005 (gmt 0)

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adamnichols45, you are not going to find a bank who will loan you money for advertising. Banks make business loans when there are assets like receivables or inventory to back them up.

Your main options would be a personal loan (backed by your personal credit, i.e., your income and assets) or a loan/investment from a friend or relative. The personal loan could be from a bank or credit card company; you'll have to pay this back, of course, regardless of what happens with the business.

As far as obtaining the money from an investor, no serious "angel" investor (much less venture capitalist) will get involved in something this tiny. Your best bet would be a relative or friend (perhaps taking small amounts from several) - you could either borrow the money or give them an equity stake. Either way, you risk alienating the relatives/friends if your deal heads south. Also, you will find that you now have business partners (even if it's a loan) who will ask you a million questions and expect you to follow their advice (which is often bad). :)

For this amount, I'd really try to raise the money myself and avoid the hassles of involving others. If your credit won't support it, try to find one person who is level-headed and work something out. Good luck!

2:17 pm on Jan 6, 2005 (gmt 0)

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i somewhat agree with ncw164x

You need to think smarter nobody will lend a small figure like that on new internet business for the following reasons

Google sandbox ( SEO )
speed and depth other SE's spider

So you would need 6 months after web site developement
before even making an impact so think in terms of 12 - 18 months from now before you start to see any return
My advice for what its worth work on longer term plan starting smaller with more organic growth and possibly 1,200 needed to provide kick start
with the following
Directory submissions Yahoo , MSN , DMOZ etc. etc.
Press releases PRWeb , pressbox etc
then if you have additional funds available use tightly focussed PPC on G and O as per your additional funds

just my 2 cents so take it with a grain of salt
steve

2:19 pm on Jan 6, 2005 (gmt 0)

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Thank you steve40

I was beginning to think it was only myself who did the organic traffic route now

2:28 pm on Jan 6, 2005 (gmt 0)

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with advertising nearly half of what you spend on advertising is wasted but the trouble is you don't know which half

ncw164x,
I respectfully disagree. I work with a number of clients and we know the extact ROI per add per keyword per engine/website upto 99% accuracy. That is why there are tools like "Key Word ROI" that allow you to track both the spend and the resulting sales in one place.
2:34 pm on Jan 6, 2005 (gmt 0)

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I was beginning to think it was only myself who did the organic traffic route now.

The problem with the organic route is the learning curve can be a bit steep. The are a host of land mines you need to avoid like the sand box for one. PPC has a much shorter learning curve albeit much more expensive.

2:35 pm on Jan 6, 2005 (gmt 0)

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I usually try to do both, PPC & Organic. Its a matter of not putting all of your eggs in one basket.
2:44 pm on Jan 6, 2005 (gmt 0)

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thank guys so far all makes very interesting reading.
What is the best way to get into the search engines? I want to be with in the top 3 links. Would it be worth paying for sponsored links?

adam

2:48 pm on Jan 6, 2005 (gmt 0)

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whats a sandbox?
3:01 pm on Jan 6, 2005 (gmt 0)

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I really dont want to dicourare the message starter...but what i feel is that you should not try to spend that much money on the start up...just spend 100 ans see what happens...try to spend this money from your own pocket money ...they see what are the results....and then slowly...you will gain the momentum...if you spend lot of money and your campaign fails...then you will end nowhere(paying the debt will keep you busy for few years) ...sorry for this some negativity...but just earn something...and try spending from your profits....i can assure you once you earn even $1 as profit..you will get the boost ...momentum to start..up and will get new ideas to take your website to the top...best of luck for your new venture...
3:01 pm on Jan 6, 2005 (gmt 0)

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be very carefull adamnichols45
top 3 PPC could be very dangerouse route if in competitive area
there are a number of companies who have very big wallets and use PPC as much for branding purposes as ROI and am sorry but 5,000 would not provide long enough for branding to make it stick closer to 50,000 plus if that is your chosen route

i consider myself a very small player in a semi competitive area and spend greater than 5,000 ( and that is only on G )per month and am not even in top 6 listings
Over the last 12 months it has become much harder for new players on the net even in what used to be non competitive areas

I wish you the very best of luck young man
there are still opportunities on the net so you will be fine if you learn learn and learn more on all area's PPC, ROI, SEO, website design / developement and so on
you have made a good start as there are some truly smart guys and gals on this forum who have great insight in all the aspects of running an internet business who i have learned from and still learn from every day
steve

3:03 pm on Jan 6, 2005 (gmt 0)

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The sandbox will make it much more difficult to rank and get traffic for the first year. I would suggest getting the site looking really nice, and focusing on some free SEO techniques. Once you have a site looks good and runs good and has been around for a few months, it should be a lot easier to secure an investment. A good place to start in finding a venture capitalist would be the local Chamber of Commerce. You should join up and start making some friends.

Search here or on Google for "Google Sandbox". You'll find no shortage of information/rants about it.

3:24 pm on Jan 6, 2005 (gmt 0)

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excellent well looks like im going to be in this for the long run. I still need to start accepting credit cards thought alone thats eats 20% into my income.

Regards
Adam

3:29 pm on Jan 6, 2005 (gmt 0)

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20%?
3:39 pm on Jan 6, 2005 (gmt 0)

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You could use 2checkout.com or paypal.com for your online payments, they only take a very small percentage of each sale.

There are lot's of other sites which you can use for online payment, do a search at google

6:05 pm on Jan 6, 2005 (gmt 0)

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>>as im in full time employment they will not be interested.

This will make banks, credit card companies, etc. happy to extend you personal credit, though. :)

6:06 pm on Jan 6, 2005 (gmt 0)

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oh well, u never replied to my email :)

had your idea been good, you could have had the 5,000 in your account by now

Shak

7:10 pm on Jan 6, 2005 (gmt 0)

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Shak, something tells me he could use advice more than money right now.
5:07 pm on Jan 7, 2005 (gmt 0)

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i did reply to your message shak and i do believe that my idea is very good. can i just ask one question?

peopele from the uk if you wanted to sell your <snip> how would you do this and where?

Regards
Adam

[edited by: stuntdubl at 10:43 pm (utc) on Jan. 7, 2005]
[edit reason] No specifics, thanks. TOS [webmasterworld.com] [/edit]

5:26 pm on Jan 7, 2005 (gmt 0)

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I would phone up <snip>, a person would call at my house, take a photo and a few days later it would be on the <snip> website until it was sold, or you could just phone them up give the details over the phone and pay by credit card and you would have a text only advert without the photo

[edited by: stuntdubl at 10:44 pm (utc) on Jan. 7, 2005]
[edit reason] Snipped specifics TOS [webmasterworld.com] [/edit]

5:41 pm on Jan 7, 2005 (gmt 0)

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>> had your idea been good, you could have had the 5,000 in your account by now

And, if not from Shak, then from me. But you didn't provide any information by sticky, you don't seem to have a business plan, don't seem to know where your income will be coming from etc. I suspect you just figured you could put a site up, advertise it, and make millions. It doesn't quite work that way.

>> thats eats 20% into my income
No, it doesn't (unless you're looking at very small transaction values in which case you need to scrap your idea now and wait till a good micropayments system is available). Methinks you need to do a little research into the various aspects of this idea you've got and the economic and practical realities of converting it into a business.

That's not criticism, that's advice. Good luck.

7:38 pm on Jan 7, 2005 (gmt 0)

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Thats right 20% is correct. Payments of 1.00 a time. Yes Autotrader charge 15 per 2 weeks which includes photo. I do think this is expensive. I wonder why so many do actually pay these very high fees. I do have figures but i was not going to write a business plan as i didnt think i would get as far as a meeting with the bank and even then im 19 i own nothing. As i have said i expect to double the income monthly. Site is being updated on sunday and i will post the link you can all let me know what you think.

Any ideas comments etc just reply here.

Regards Adam

8:01 pm on Jan 7, 2005 (gmt 0)

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adamnichols45

I am afraid you have the wrong idea about a business plan , you do not just produce a business plan to borrow money , you create one to help yourself look at your idea as a business not as an idea in your head.

A business plan helps you define

What is your business
What are your objectives
A marketing plan
A basic cashflow plan
etc. etc.
By doing some of the above and others you give yourself a chance of success

My advice is to get a book from the library on starting a business , the internet is a business like any other and some basic principles still apply

steve

6:01 pm on Jan 8, 2005 (gmt 0)

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As i have said i expect to double the income monthly.

Based on what?

7:23 pm on Jan 8, 2005 (gmt 0)

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I wonder why so many do actually pay these very high fees

Because it gets results and was tried and tested offline before the Internet became another outlet for it.

Some of the high flying big earners at webmasterworld would think twice about taking on such a massive task of building a site of this magnitude to try and compete in this area, now what i would do is to contact the magazine and ask for a data feed to integrate into an existing site thus adding the same information without any cost whatsoever and take a small percentage, the trouble is in your case because you have not got a site up and running without any traffic they will not want to know you

Moving on...
Why don't you put this idea on the back burner and look at other ways you can earn an income from having your own site without having to spend a vast amount of money, build an affiliate site, buy and sell stuff for other people or if you can raise any capital sell items for yourself, these are only a few idea's there are 100's more.

Don't think I am trying to put your first idea down because I am not but its a mammoth task what you have in mind to do part time and without any money.

PS don't take any notice of the offers of a loan from the posting above, they should not be posting these comment on an open forum in the first place, but as they say where there is a person in need of help there will always be a shark....

4:45 pm on Jan 9, 2005 (gmt 0)

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Well i actually want to do this fulltime and it is certainly not my first idea.

Many of my friends who have bought and sold cars think it is a great idea.

On the money side of things it actually only costing me less than 600 to start this off.

Its the fact i have spent 40 hours a week for the last 3 months working on this project that have helped keep cost things down.

<snip>

I would love for you all to let me know what you think.

cheers.

Adam

[edited by: stuntdubl at 11:48 pm (utc) on Jan. 9, 2005]
[edit reason] No specifics please. TOS [webmasterworld.com] [/edit]

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