Before launching a business - the things you need to do and prepare

[krupt]

Hey guys, I wanted your tips on this -

I want to start a new business/company/idea of mine

What are the key things to get running before I approach possible investors and clients with my idea

For me, a big thing is presentation. Everything has to look hot from the word go - I always believe in first impressions count

So for me a first thing I am looking at is getting everything ready.

- A hot logo

- A hot website with relevant info on it

- A clearly laid out business plan, all on headed paper with my logo on it

--

What do you guys think? Anything else?

It's like saying when sports people have a big game coming up like the Superbowl, you train and prepare before you go out on the field.

Before soldiers go to war, they equip themselves

Before you go out and TRY your business out, everything has to be ready.

[fisel]

clear and realistic financial predictions

[akula]

What are the key things to get running before I approach possible investors and clients with my idea

For me, a big thing is presentation. Everything has to look hot from the word go - I always believe in first impressions count

So for me a first thing I am looking at is getting everything ready.

- A hot logo

- A hot website with relevant info on it

- A clearly laid out business plan, all on headed paper with my logo on it

nah..all these things are pretty irrelevant
logo, website, business plan....they're just trivial details
if your logo, website, business plan somehow blew up and disappeared tommorow, your venture should still be operating - therefore, these things are not important.

what's important are leads, customers, records and cash. if you have plenty of leads, a number of customers, some kind of a document showing a transaction and other people's money in your bank account - you're gonna be fine..if any of these things blow up and disappear - your business disappears, therefore, they're critical

don't waste your time with the trivial, focus on the critical

I dunno...do I need to run through the four factor model again?..just think of the four entrepreneurial roles, and they'll tell you what "the key things to get running before I approach possible investors and client"...for example; investors couldn't give a shit about a polished presentation - they care about advisory boards and syndicate coinvestors (things you would have organised in your role as a founder)..and that goes for other things as well

[krupt]

How are you going to show to anyone other people's money in your bank account if you havn't even launched your business/idea yet

How are you going to show records/cash/customers if you havn't launched your business yet?

[akula]

How are you going to show to anyone other people's money in your bank account if you havn't even launched your business/idea yet

How are you going to show records/cash/customers if you havn't launched your business yet?

Ok..that's the whole skill of foundership.

In software it's euphemistically called the vaporware strategy
like, at vacancybid, we've set a rule that we're not gonna make a website, or code even a line of our software before we have enough customers to reach break even..so that's what I do, I go around selling a product that doesn't exist..likewise, for example, the 18y.o founder at squarespace.com followed the same strategy and made millions...

in property development the same process takes place when the developer sells apartments "off the plan"..meaning that she sells apartments which haven't been built yet and then uses all that cash as collateral for raising the loan to build the building

yet again, in financial services, when there needs to be an IPO, the investment bankers go around doing book building..pre selling securities which don't exist yet..and if they sell enough, the IPO goes through, and if they don't the IPO fails

krupt, that's the magic and the skill of foundership
the founder has to pre sell product before it exists. this significantly removes risk from the company and makes it more attractive for investors, creditors, employees, partners, distributors etc

if the founder fails in his function to take the risk off the table, the company doesn't go anywhere and the valuation stays at the same high discount rate (i.e. the value of the company doesn't grow)

[2gould]

The book, "The Art of the Start" might be helpful to you. Its a good resource for the types of questions you are asking.

[leggomygreggo]

I agree with Akula about how you don't need flashy stuff in order to start a business but I am having a little difficulty comprehending the idea of foundership. How do you get people to invest in something that doesn't even exist yet?

[akula]

I'm a kawasaki groupie, but trying to get a startup team to follow a mantra isn't exactly on my list of priorities..for people serious about getting shops off the ground, i'd really suggest looking back 15 years and reading david silver

[2gould]

Yeah, i agree, some of what is in the book is not really relevant to the original poster's question. I haven't heard of David Silver - I will look into his books/works.

[AndrewJ]

The first thing you need is a good domain name and web hosting.

[akula]

How do you get people to invest in something that doesn't even exist yet?

by asking in such a way that they can't or won't turn you down, ha

[krupt]

WIth all due respect Akula, like you have way more experience than me in this but personally, for different things I think there are different situations.

For example, there are different types of products. Someone can be opening a shop - someone can be selling an internet product, someone can be selling something that requires no outlet - get my point

For what I'm doing which I don't want to say until I have it ready, it requires no overheads like a shop and I am not even selling it - I am giving it away for free - taing money from advertising

I believe I have to get everything upto scratch and looking good - I need a good clean brief business plan, couple of business cards - need to know exacly how much I am charging for advertising. I need a sample of the product to show advertisers.

I have to make it all hot

[akula]

hey that's cool, whateva. it's your business, chief :-)

I'm just here to spotlight the two options that you have;

a) you can either spend another god knowns how many months "making everything hot" - and then start pitching your advertisers, partners and users (whenever that might be) or;

b) you can wake up tomorrow and start pitching these same advertisers, partners and users right away. as a rule of thumb, I can tell you that you'll have more success with option b)..and let me tell you why

one of the key traits for sucessful venturing is to focus on things you can control. with option a) you're doing the opposite in trying to second guess the expectations of your advertisers, partners and users...so what I'm advising you is to focus what you can control; start contacting these advertisers, partners and users tomorrow morning; ask them what their expectations are and then start working towards those expatiations.

It works like this:
You: Hi mr advertiser. My name is so and so and we're doing xyz. What would it take for us to get a meeting with you?
Advertiser: Why, I have some time tommorow, are you available?

It's your decision which way go. knock em dead!

[Nigami Enterprise]

What happens if you invest in a logo website ect and teh investors want sumthign different.

Anybody can look the goods, it means nothing. worry bout how ur going to do things..

[Allurre]

A strong marketing/business developing plan. Make sure everything adds up.

A great team of supporters that are skilled, knowledgeable, dedicated, has the time, and knows what they're doing themselves.

MONEY.

CONNECTIONS.

FAITH.