*NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL...*

[CoMp1eX]

I'm 20 years old and just recently finished my associates degree, but have to go after my entrepreneurial passions (for myself) before finishing up my finance degree.

EDIT

 

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[CoMp1eX]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Majority - Web Development/Design.

 

[kurtyordy]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

go to prosper to come and take out a loan. If you believe in it, and know how to do it, then take the risk. In the big scheme of things, what is 20k.

 

[australianinvestor]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

I've been in your shoes...

I would personally:
- Forget borrowing money. Do it without it. If your concept is workable, try it on a small scale and use the profit to finance the expansion. If the concept actually works, awesome. Great business and no debt to service. If it doesn't work, great. You kill the business, have no debt, and move on to something which has a chance of working.

- I have an old gorilla suit I could lend you. Just kidding! Guerilla marketing is cool. Especially if combined with the above. Read Seth Godin's "The Ideavirus". If you can make one, awesome. There are also plenty of free ways to do marketing.

- Too many ideas: I have the exact same problem. I come up with at least a few per week, if not per day, which I have a good feeling could make a lot of money, if I had time, energy and money to allocate to them. I used to have LOTS, and started planning and pursuing most of them. Not all good ideas should be pursued. I judge an idea by its profit potential, and my ability to make it work. The second is critical. If I don't have the skills, resources and contacts, I drop it. If I don't have the time, energy or focus, I drop it. Do NOT fall in love with cool ideas. Simple, good businesses which actually succeed are far more valuable to me than ideas which require years of skill acquisition, special planning and so forth. I don't want to run cool businesses. I want to own profitable ones, whether its a chain of ultra-profitable hot dog stands, or an insurance company. I don't want to be there, I've got other cool stuff to do, like travelling, learning to snowboard, buying an island and building a cabin on it (more about that one if my two big projects this year work out!), and more.


Long story short: ask yourself this - how long would it take you to earn $20K back if you lost it in this, and how much would the interest cost you on top of it, and how many really good opportunities will you miss out on because you're paying back a loan? I really urge you to think about borrowing money if it's possible to test your concept without it. If not, find a partner to take the risk. You may end up with a lot less of the profit, but you also hedge (up to 100%) against loss. Half of the profit is probably better than all of the debt. You live to fight another day!

Good luck!

 

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[LightHouse]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

I havent read through all the responses yet. But one thing stuck out so far

"Majority - Web Development/Design.

Also, I'll need a good amount for gorilla marketing plus online advertising.

I need another $20k or so."


"good amount" and "20k or so" sounds like you have absolutley no idea where you are headed. it would be a bad idea to borrow money not knowing amounts. I tihnk you should build a business plan first even if its only framework. that will atleast help you nkeep on track and make accurate goals.

 

[Jeffs07]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Incorporate in the state of Delaware and then issue stock to raise the capital. Pay yourself in stock as an organizational expense for your role in the business. That way you have limited liability. The trick is getting people interested enough to buy your stock...

 

[kimberland]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Do all the sites have to be up at one time
to make any money at all
or to make optimal cash?

Why I ask is that it is often beneficial
to start with one,
work all the bugs out with that one,
before working on the others
(but build it with an eye towards templating it out).

At least,
I find that I don't ever launch anything perfectly the first try.

And if you have the one site,
you have something to show investors.
I always pay more for things I can touch and feel.

 

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[Cmbilt]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Incorporate in the state of Delaware and then issue stock to raise the capital. Pay yourself in stock as an organizational expense for your role in the business. That way you have limited liability. The trick is getting people interested enough to buy your stock...

Ummm........No

 

[8 SNAKE]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Can't tell if this is serious or a joke...

It seemed serious to me.

 

[CoMp1eX]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Give me more info on Delaware incorporation please... :smx4:


Just kidding, but thanks for all the advice.

I do believe that in the scheme of things, 20k isn't that much at all. I do know that it will take time.. So that's why I'm worried about taking out a loan, but I am a huge risk taker.

Thanks again. BTW, has anyone used Prosper.com? I'm very interested!

 

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[PEERless]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

go to prosper

has anyone used Prosper.com? I'm very interested!

I borrowed 4K for my business there at just over 9%. It funded quickly, because I was detailed about my plans with the money (and I'm a homeowner with a 3%DTI and A+ credit). Try them out!

 

[RaisingWealth]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Does anyone on here invest on prosper?

Good, Bad Stories

 

[Jorge]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Does anyone on here invest on prosper?

Good, Bad Stories

Check this:

http://www.thefastlanetomillions.com/showthread.php?t=4514&highlight=prosper

 

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[MJ DeMarco]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

I'm 20 years old and just recently finished my associates degree, but have to go after my entrepreneurial passions (for myself) before finishing up my finance degree.

The past year I've been educating myself heavily on online business with a focus on advertising/marketing. Then I moved onto buying up domains (up to 28 high quality domains). I came up with an amazing idea for a site while driving home from Seattle at 2 a.m. in the morning last August. Well, I've implemented that site and now it focuses on many sites all building off each other. Multiple steams of income, as well as affiliate marketing, also come into play.

I started devouring information on how to get sites, forums, and everything else made and now I'm to the point where I need/want to take action. The problem is (I'm not making this up), I have come up with up with 6+ INCREDIBLE full on sites (plus a few forums) I want to get developed that all NEED to run at the same time.

Weird situation I know, but it's my chance to shine and I'm really confident in everything. I've saved up a good starting amount, but I NEED to go all out (which is the way I am), I need A LOT more $$$ to do so! What should I do? Loans? Investors? More credit cards? I already got more than enough help from friends/family...

I guess I do have to take risks to reap the rewards.. My story is also missing info, but it's pretty straight forward. Thanks ahead of time!

Short story: Lot's of ideas, little capital. 20 year old, want to go all out on entrepreneurial concepts. Need to know if I should take risks and go all out getting money anyway possibly by loans, credit, ect. like I feel needs to happen.. or take it slow and do 1/2 at a time...

P.S. - I set a 1 year deadline

I think you are spreading yourself too thin. Focus on one thing and do it right.

10 things done half-a$$ is not as good as 1 thing done right.

Would you rather have ...

A) 15 ideas that made your $2,000 each?

or

B) 1 idea that made you $2,000,000?

Secondly, it is a myth that you need to spend money to get your online business growing. It can be done freely (to start) and as momentum builds, you can start to finance your growth with its own internal cash-flow.

Third, if you have a concept that is growing, it is far easier to attract capital. Remember, EXECUTION is king. If you show an ability to EXECUTE, more people will be willing to invest. Without an execution track record, you will be in for a difficult sell.

Investors (VC's / PE / Angels) typically invest in the management team (you) and their reasonable probability of executing the supposed "million dollar" idea.

 

[PEERless]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Does anyone on here invest on prosper?

I have $100 earning 14%. Can't have it back for 3 years, though...

Remember, EXECUTION is king.

Quite right.

 

[Yankees338]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Majority - Web Development/Design.

Also, I'll need a good amount for gorilla marketing plus online advertising.

I need another $20k or so.

First, as others have mentioned, write out a full, detailed plan. Not only will this give you concrete objectives, but you may also think of new ideas to better your future business(es) while you're writing.

Also, do you know anyone who is in web design or development? Even if you don't, perhaps a designer will be interested in partnering up with you, which will greatly reduce your necessary start-up capital. You bring the management and idea(s), and they'll bring their design skills. Win-win!

 

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[australianinvestor]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

...I am a huge risk taker.

My opinion on risk:
- Take it on when it's risky for others, but not for you (better returns, little risk to you)
- Minimise it as far as possible. Make the worst case scenario also profitable.
- The return must outweigh the risk, and the downside must be acceptable.

Your eagerness to embrace risk is advantageous (a lot of people see any risk and get scared off) but you need to control it. From what you've posted, it's hard to tell whether you like to take huge risks for their own sake, or if you take them using control measures. Rermember, the goal is to become rich, and losing your winnings from your last deal in a new, risky one makes it harder.


Daniel.

 

[BLSH]

Re: *NEED ADVICE, 20 yr old w/ too MANY IDEAS, too LITTLE CAPITAL

Majority - Web Development/Design.

Also, I'll need a good amount for gorilla marketing plus online advertising.

I need another $20k or so.

Your excitement is refreshing, I hope its contagious. I think there might be another way you can approach it if you dont have money/capital to invest in the business.

Find people that are web-designers/developers/marketing professionals with entrepreneurial spirit. There's always an entrepreneur trapped in a professional role who has the right amount saved up and is just itching to take the leap.

If they like your ideas, and your plan they might work with you for free while the company makes $$ and then gets a cut of the profits when you become profitable. Finding these people is easy with networking sites like LinkedIn, TFL2M$, etc.

At this point, you need to write a business plan to further refine the idea in a way to explain the concept to others, most of these come with a standard NDA to protect the ideas. If you need templates of some plans, let me know.

Best,