Questions

Single founder, non-tech start-up service venture. Bold new service with a clear path to profitability within a 2 years. Who to talk to?

My non-tech business plan is capital asset intensive (at least $25M), but needs the asset to generate revenue. A related company is worth billions at this time. Almost all the pointers on the web are all about tech start-ups.

5answers

It is hard to give specific advice without specific information.

Many of the pointers I see can be applied to non-tech startups. In the end, it is about knowing your customer's needs, partnering with those who complement your strengths and weaknesses, listening and evaluating feedback, getting to market efficiently and effectively, and always be innovating.

Feel free to book a call and we can discuss more in confidence.
-Shaun


Answered 5 years ago

Well don't get discouraged. Though books like Hooked by Nir Eyal are very web focuses, it all boils down to human psychology. You are providing something of value to someone, customer development remains the same, staff motivation remains the same, good marketing remains the same.

It would be hard to think there was no web or tech component to this business, even if it were just your CRM, email client etc. I assume as your question mentions capital expenditure you mean who to talk to, in order to secure that? In my experience it would be quite difficult (unless you are self financing to get a lot of capital invested), mainly because bank loans to a single founders are hard to come by.

So breaking it down - it appears there is demand, assuming this other company has validated your idea.

Do you have potential customers, or letters of intent from potential customers. If not it couldn't hurt to warm them up and assess their needs when building your business case.

If it's serviced base then I assume you will need to staff up? In which case it might be worth ear marking key hires. If your company will achieve 'runaway success' then actually staffing, company culture and scaling becomes quite difficult. There should be no reason to leave this up to chance, hiring mediocre people especially in small companies gets mediocre results.

Without any more detail it is probably hard to troubleshoot this any further.

Always available to discuss further if you wish.


Answered 5 years ago

It sounds like you are seeking capital (as you state that you will need at least $25M) or seeking advice on who to talk with in order to raise capital.

I think that this will be a relatively hard venture to raise capital for. In that range - and given that it is non-tech probably you should talk to private equity funds with experience in related fields.

My guess is you will have a hard time to get equity or debt financing without collateral for that amount starting from standing still. Unless you have a history of success or a rich uncle.

There are many different funding sources (government, private angels, VC's, banks, crowdfunding) - there may be very few are available for something like you initially describe.

Capital intensive - and also a service business.


Answered 5 years ago

I have people you I can connect you to if the len makes sense . Check out ideafather.com and you'll see the level of folks I've worked with and then let's arrange a call.


Answered 5 years ago

There is no business that cannot be start on a shoestring, so the first thing I would be doing is testing the market with a real website offering a real product. I can explain how I would do that when we talk.

One question I have is, is this a product or service that you are really excited about doing or are you strictly looking at it from a dollar sign viewpoint. Why I say that is you will like most of us who have done a start-up hit some really tough decisions and if you don't like what your doing you decrease your chances of making it substantially.

Call me and let's walk down some various options to get this off the ground with the resources you have first. Let's also not blow your whole nest egg on any one venture so you can live another day if things go south.

Call me and let's see what's possible.....Ken Queen IncomeForBabyBoomers.com


Answered 5 years ago

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