Do I have enough money?


1

I have a budget of $10,000 with a generous $5000 emergany bank to build an information/data site which i want to have ecommerce/video streaming/large forum area/gallery and how to areas etc. the site is to cover multiple sports and activities.it will need to be able to carry a lot of statistics and data uploaded every day and be expandable to the max,do i have enough to do this? and can it be automated to recieve the updates and i could enter articals etc via the CMS it will have as well.i basicly want a top notch professional web site with full features that can one day via affiliate deals and banner adds etc make me a reasonable income .

Cost Estimation

asked Dec 9 '11 at 16:54
Blank
Smee
9 points
  • Very simply, no. Regardless of whether that pays for the initial site, you need an engineer at least part time to maintain on an ongoing basis. Unless you are a software engineer too and are willing to work for free. – David Benson 9 years ago
  • It is impossible to answer this question – Tim J 9 years ago
  • find a niche. start tiny. aim small. – Mike Nereson 9 years ago

3 Answers


5

The main difficulty is that you have chosen a theme (sports) that is already well covered and extremely competitive, due to all the money involved. You make it worse by suggesting you'll cover "multiple sports", which means you'll have no focus.

Your budget of $15,000 probably doesn't even cover the running costs for a day, for one of the big sports sites.

You shouldn't give up, but you need to find a niche that you can exploit, and build from.

answered Dec 9 '11 at 19:02
Blank
Steve Jones
3,239 points

2

First a Plan After you have written a business plan you will know you actual cash need. The cash need will be the total amount that you need until your projected break even. The break even will be when your projected revenue exceeds your expenses. This is usually estimated on a monthly basis. Then you will be able to answer the question of whether the amount you have put aside is sufficient for launching your business.

Understanding the variables There are two significant variables that will impact the amount you will need. The first is the degree to which you can contain your costs and ramp up slowly and incrementally to match an increase in both users and customers. The second will be the ability you have to securing paying customers quickly.

Why We Can't Really Answer No one, not even the smartest people on this board can truly answer your question because we don't have sufficient information. We don't know how much of the work you will be bootstrapping, what creative and innovative marketing and advertising models you have for securing customers, if you will have customers right out of the gate. Heck-- based on what oyu have told us -- we don't even know what your business model is!

But, what the heck -- we will anyway. So of course we will all chime in based on assumption anyway. My assumption is that you are creating a content rich site that will try to attract users-- whose provide you will sell to prospective advertisers in the very competitive sports space. based o nthat I assume that you will need a super atrractive site-- which will cost some money -- with some super attractive features -- which will cost money -- that display some super cool content -- which will cost money -- and that you will need to cut through the noise -- which will cost money.

So based on all of those assumption -- I think it would be hard to see a credible business plan that showed an ability to break even with $10,000 cash and a $5,000 line of credit.

answered Dec 10 '11 at 15:08
Blank
Joseph Barisonzi
12,141 points
  • To the anoymous downvoter thank you for the feedback on my answer. Of course you have a right to downvote my answer. If you were to you provide a comment or feeback on how it could be improved (or where I erred) - that would be appreciated and very helpful. – Joseph Barisonzi 9 years ago

0

Some ways of reducing your operational costs: use YouTube/Vimeo for video until you have enough money to pay for streaming (which can get very expensive, esp. for sports videos that tend to get a lot of views).

answered Dec 10 '11 at 05:23
Blank
Bay Area Engineer
6 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Cost Estimation