HasRob said:
Heres the email I got back from an angel investor rep.
Robert, your goals are admirable. As a first step, I'd encourage you to try to learn what it took to create and grow a business like the two you mentioned, why a 3rd business like that would be desirable, how you would assemble the people with the right talents to make such a business viable, if you were able to raise the money, what you would do to differentiate from your competitors, and what you would do to enable your investors to make money.
When you've thought those things thru, write a 3-5 page summary that answers the key questions, provides a forecast of the financials for the first few years (including at least 2 years after you become profitable), and start sharing it with friends, family, etc. to raise some seed capital.
Use that to make some progress (e.g. recruit some partners/collaborators that share your vision, begin to implement your products and test them with prospective customers, etc.), showing that you have both vision, the passion and the skills to launch a venture, then start talking to angel investors like us.
hope that helps.
Why is my life so complicated
:hehe:
What he's asking is standard. At this time, you need to get your concept together and basically answer the questions that we outlined in this thread, he's jut reworded them a little, essentially they are the same though. The only hurdle is an accurate financial projection. If you're not versed in all the ins and outs that need to be considered, which are basic book keeping in combination with financial forecasting, consult with a professional. There is free help available within your community.
Once you've done that, you have 2 options. Check with relatives and see if they want to invest. Downside: It's most often difficult to work with relatives, even if they're only silent investors. Upside, you're gaining more independence and ability to make decisions without having to report every single move or having your books inspected. OR
Talk to a bank or venture capitalists, there are thousands of them around, depending on the amount of investment of course. To them you will have to
1, prove that you're the next best thing
2, that their investment is in save hands
3, that they will get out of the investment what your forecast assured them
4, accept the fact that they might monitor your every move
5, that they will require access to your books, customer base, etc.
6, lots more legal aspects need to be considered when working with them
7, on the positive side, if your plan doesn't work - you haven't tainted any personal relations and your family, friends and acquaintances will see you as the HasRob that you are already to them.
Ultimately, it depends on what you're most comfortable with, how much skill, knowledge, determination and faith in your project you can bring to the table.
Again, don't let too many business terms scare you, most of them can be reduced to simplicity. You don't have to counter with business terms (although it would help), what matters is that your concept is crystal clear.
Also, should you decide to present at Investment Bankers, Venture Capitalists, etc. consider a Non-Disclosure agreement that must be signed before you roll out your concept. Better safe than sorry, it would also demonstrate that you're protecting your intellectual assets. If a VC is not willing to sign an agreement, walk away.
Not sure how much that helped, if any. Best of luck!
Mike
