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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.
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
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!
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
with advertising nearly half of what you spend on advertising is wasted but the trouble is you don't know which half
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.
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
Search here or on Google for "Google Sandbox". You'll find no shortage of information/rants about it.
peopele from the uk if you wanted to sell your <snip> how would you do this and where?
[edited by: stuntdubl at 10:43 pm (utc) on Jan. 7, 2005]
[edit reason] No specifics, thanks. TOS [webmasterworld.com] [/edit]
[edited by: stuntdubl at 10:44 pm (utc) on Jan. 7, 2005]
[edit reason] Snipped specifics TOS [webmasterworld.com] [/edit]
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.
Any ideas comments etc just reply here.
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
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
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
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....
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.
I would love for you all to let me know what you think.
[edited by: stuntdubl at 11:48 pm (utc) on Jan. 9, 2005]
[edit reason] No specifics please. TOS [webmasterworld.com] [/edit]