Hello Aunty B,
I run a successful wholesale business but want to build a web portal for my niche, which I envisage would be a separate business with forums, directories and chat rooms and could easily make a lot of money.
I don’t want to redirect finds from my business towards this and wondered about attracting venture capital as I estimate that I need about $5 million.
How do I go about this?
My goodness, I thought you dinosaurs had died out with the last tech boom.
Why on earth do you need $5 million to build a web site? You could get one up for $200,000 tops, which also has e-commerce facilities, forums, blogs and any other bells and whistles you want. Glen, Web 2.0 is all about companies like yours being able to set up new websites WITHOUT talk of millions, VCs and exits.
Second, why would you give a heap of equity away to rapacious venture capitalists who will grill you at board meetings and demand some highly unrealistic return in three years or he will take your children? If you have a successful business, then back yourself with your own funds and enjoy all the upside.
Third, you are looking for venture capital. VC funds are a specialised financial product that suit very few businesses – and in fact very few businesses get it.
If you need some funding to kickstart the project, how about approaching an angel – someone you know in business who might kick in some cash?
Is there a supplier who might be interested in a joint venture? How about a key staff member or member of your family?
Finally a word of warning. Sounds to me like you have got Entrepreneur A.D.D. (A Desire for Distraction.)
Why don’t you focus on taking your business to the next level and include the website in that plan instead of trying to recreate Google?
James Manche of Karman Group writes: We can help Glen with exactly what he is seeking for an investment that will be less than the $200,000 you refer to, with tools that he can use to further advance and custom his proposed portal.
What are you waiting for? Email your questions, problems and issues to [email protected] right now!