Should I put all my chips in?

[foodiechica]

I have a website that I am working on, it's one-of-a-kind. Right now my developer is making it look nice and function. Anytime I speak with people who are in this niche market they think it's a great idea. The problem is, to market the site and make it work will really take a lot more time then I have to devote to it right now. I'm a new mom, I have a full time job, I'm in business school. I also live in an expensive city and we can't afford to live purely off of one income.

How do I know whether or not I should put all my chips in - quit my job - get some time of part time job - and just pimp this site??


Oh, and long story short - I work for my parents company. I'm overqualified to be there and I'm expensive and they really don't know what to do with me. (I am a barred attorney - but found out I was pregnant shortly after I passed so I started working with them).

[BusinessAdviser]

I am in somewhat of a similar situation with a site that I am having developed. It's scary, huh? The key is to really do your research and make sure that you have every detail planned out. At some point though, you need to plan for the worst in order to protect yourself in case it fails. There's no getting around it.

[foodiechica]

Right. I've been trained to think worst case scenario. The attorney in me is telling me to play it safe. And the businesswoman inside of me (and a little Donny Deutsch sitting on my shoulder) is telling me to stop living in fear and go for it.

The worst case scenario: My parents are pissed that I left the company, We really struggle over the next year and can barely afford to pay our bills, the site launches and no one cares, and then I have to pay back the $5K I borrowed from my 401K.

My gut instinct is telling me that it's going to be big. Real big. And there are SO many related products I could sell as well. AAAH.

You know how they say you have to have money to make money - yeah this is what I'm learning.

[Gaulkin]

Ouch, you borrowed 5k from your 401k? Why not just get investors to give you financing?

[foodiechica]

It's not an ouch at all. I have to pay it back over the next three years - and all of the interest goes directly to me. I'd rather have interest go to me than to a bank. Plus, I'm in my twenties still so it's not as if I'm 55 and will need that money soon.

[Gaulkin]

I guess, and your making the whole website on 5k?

[foodiechica]

We spent about 1K on the graphical design and will spend about 5K making it function. Then it's a matter of personal time investment to enter data, market it, etc.

[tazman9r]

Let me tell you a story.

Graduated from aviation school (an expensive one) in winter of 1998. Wanted to go big as soon as I could, so made some key decisions that went south on me. I've worked for two companies where I couldn't log all the flight time (like getting experience without being able to tell anybody), been hired by a company that closed up two months later, and ended up a security guard at a mall to cover the monthlies. I've been back in aviation for over a year now, but it has been an adventure, let me tell you.

I tell you that to drive home the point that if you are uncertain, I would advise caution. There are quite a few success stories about the people who threw it all down and took the bet and won. There are MILLIONS of stories we never hear about. The lawyer in you already knows the best answer probably lies somewhere in between. Do what you can without endangering yourself, or your family.

[EasyAutoSales]

Things would be much simpler if you weren't married or is a new mom... but that doesn't mean you can't go for it even if you are. I've taken a few risks in my life (28 now) and I'm actually right in the middle of another one.

So here are some things you can do to take calculated risks.

- Finish your website, but do it on the side. Unless you understand the IT behind it, I'm not sure you need to be made available full time to make sure it's done. Find a team you trust to work on it and continue your day job for now.

- You said you were working for your parents... maybe you can start working less hours per week as you move forward until you are ready to make sales. (35, 30 hours a week, etc.)

- Find customers. When you start any idea, a lot of people will say it sounds great. For me, the real test is if they will put their money on it. Aside from investors, if you can get a couple of potential customers to sign a contract saying they will order from you when you're up and running, that should lessen your risks a little bit.

Without knowing exactly what you're selling, it's a bit hard to generalize. However, I have found that lawyers generally play it too safe because they know too much on the legal side, which can both be a blessing and a inhibitor.

On another note, are you expecting any tax refunds? That money may be able to help you invest or at least carry you through a couple of extra months if you decide to go all in.

[Gaulkin]

No offense but less then half the battle is actually making the website. Your going to need alot more money to actually get people find and use your website.


Ps. There is a reason no website millionaires are on the big idea and that is because it is just that hard to get people to your site and use it.

[green1972]

hi, there is a business plan competition you may be interested in, you can win up to 20K. let me know if you need more info.

V-

[The Stealthy One]

foodiechica, could you share a little bit about what the site is about? Knowing that might help us give you better advice - the target market of the site will be a determining factor in how long it takes to "ramp up."