Hey guys, it's me again. As was to be expected, I've run into funding problems with Idea School.
The quality teachers I'm looking for are worth about $50-60K per year. Now, of course, they understand that we'll be scaling up to that number over the first year or two, but really, I want to retain these people. They believe in the project, but of course, can't work for free and are used to a level of salary.
That being said I've got a money problem. Raising capital seems to be a great idea, but I'm not so interested in giving up ownership (not opposed, just not that happy about it). My personal credit has hit a pretty low point due to my prior irresponsibility with credit cards. Recently, I've taken steps to reduce my debt load and free up working capital monthly (selling my car, etc.). I also have no collateral. I'm running on bare minimum.
Where do I get more start-up capital (based on my projections, $15K would be comfortable, and $5-10K would do it, but would definitely be red line for the first few months)? No collateral loans? bad credit loans?
Alternatively, I've been brainstorming some simple intellectual products that I could create via Idea School and sell as .pdf's for $3-5 each and advertise them as donations with a bonus gift. Do you have additional thoughts or resources for simple fund raising products/ideas?
Thanks OnStartup Community! :D :D
$15K is too little for VC. You probably won't find an investor for such a small sum of money anyways, so I wouldn't waste my time with that. Here are some ideas:
To answer your question about Business Plan templates, take a look at these other questions:
Are there any recommend sites for example/outlines/template business plans? Online resource to view successful startup biz plans? What books for writing a Business Plan? Elements of a Startup Business Plan As a side note, you might get more responses if you word the title of your questions differently. I noticed that you title your questions "New School...". If you make the title more descriptive, you'll get more people actually reading your questions. For example, for this question I would title it something like, "Looking for startup funding advice" or "Looking for ways to fund my startup". Just a thought.
I hope this helps! Good luck!
Why are you trying to start a unique school with such traditional methods?
Like most startups, you're no where near hiring anyone full-time. Pay instructors contingent on class enrollment. Offer a larger percentage if they develop the curriculum. Are you looking at the best candidates to teach business/entrepreneurship if they demand a salaried position?
Are you trying to build a brick and mortar school, online or both? Maybe you can find a local place that will let you lease a conference room for an hour or two. Are there any coworking spaces in your area?
Great idea? No money? Get a job, save your money, work on your business part-time, get customers, produce a sale(s). In other words, bootstrap your way to validation and viability.
If customers or suppliers won't support you in the beginning why would an investor?
Well, like so many people - you are in the phase where a funny afancy idea meets reality.
You need money. Point.
Get money. Point.
Giving up a percentage of ownership is the only sensible way - only idiots (and there are not too many around on that level) will gladly give someone who already has bad credit (as you indicate) a loan for something that risky.
Actually only idiots will sign up with that school, too, as teachers - because even if you get things running now, you have zero reserves. You should at least have the whole expenses for the first year in your pocket.
Sorry to be blunt, but that is a perfect example of how to not go through with financing a project. Even if you pull that of - start wise - yo uare set up for a desaster.
Ideas arae cheap. Entrepeneurs with fancy ideas to pull things off without capital (that reuire capital). All worthless - execution is important, and - obviously - arealsitic view on finances is, too.