Need capital to start up development firm.

**frankychan04** · 01-12-2010 03:33 AM

Okay I know I'm going to get grilled by the pros here but I'm ready to accept any constructive criticism.
Me and my brother are looking for some capital (and partners) to help us start up our development firm in New Zealand. At the moment we have two advanced programmers and one designer who are ready to take on positions as soon as we are a proper business. We have been holding off getting incorporated for a while but if we wish to expand this is something we need to do now.
We basically need this capital to get ourselves some office space and some equipment to fill the space

We intend to make a profit by being more than just an average web design/development firm. We intend to build and market our own projects as well as taking on clients and working on their projects, we already have many ideas which we would gladly share to anyone interested.
We will gladly discuss the amount of capital needed and the shares one would get in return to anyone who is serious and interested.
My design/development portfolio can be found at http://www.frankychan04.com
Details of the brand we are trying to create can be found at http://www.frankychan04.com/01/2010/whats-going-on/ and http://www.frankychan04.com/01/2010/the-vee-brand/

Any advice will be much appreciated.
Cheers
Franky

**akula** · 01-12-2010 04:03 AM

hi Franky...i don't know how in this day and age anyone can suggest that they need capital to lease office space for a dev workshop and to pay people salaries...it's absurd...more than that, I think it's a bad reflection on you that you would be willing to throw around your equity like that..

the advice is to keep your fixed/variable costs to a minimum and bootstrap the thing like a normal person

**frankychan04** · 01-12-2010 04:15 AM

Originally Posted by akula

hi Franky...i don't know how in this day and age anyone can suggest that they need capital to lease office space for a dev workshop and to pay people salaries...it's absurd...more than that, I think it's a bad reflection on you that you would be willing to throw around your equity like that..

the advice is to keep your fixed/variable costs to a minimum and bootstrap the thing like a normal person

Im a complete amateur at this and anyone who chooses to invest can have a say on where the capital goes as I am also in need of a good mentor who will stop me from making decision like the one above. My brother would have been more capable to write this post since he will be taking the managerial role and I will purely be a developer. But like I said im looking to get this business up and running within the next few months and he is not around to do this at the moment.
I will remember the above advice though.

**akula** · 01-12-2010 04:37 AM

sure..i see..
this is the proper way to start your business
do what these guys did and you'll be ok
The Lean Startup Wiki / Case Study One

1. pick up the phone, reach out to customers
2. find out who needs your product/service
3. ask them for an loi/prepayment
4. use the prepayments to start your venture..together with consumer credit, savings, donations and trade credit
5. deliver your product/service
6. rinse, lather and repeat
done. you have a business.