Business Strategy · Fundraising

New business, no outside funding, how to succeed. Can we create a "quick list" of suggestions here?

Jim Hoffman President and CEO at Visual Mobility Inc.

October 7th, 2016

Even if you have a viable and great idea, getting outside funding is about as likely as being struck by lightning. So how do businesses succeed in the absence of funding? I did it by never giving up. I earned money through outside consulting, partnering with key business leaders, joined an accelerator and finally after three years, finished development and sold my first major account. I wanted to start this discussion to create a "bullet list" of what other startups have done to build their business without outside funding. This list can be re-visited by others in startup mode to formulate a thought process that isn't dependent on outside funding for success. Looking forward to your suggestions.
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Martin Omansky Independent Venture Capital & Private Equity Professional

October 7th, 2016

Jim: We provide outside funding for ventures, but we always advise people to put their own resources to work, and/or obtain non-dilutive funding for their enterprises first. One can always try to raise outside funds later, if needed. The fact is, however, that there are many ventures that need gobs of money right from the beginning - life science projects are a good example - in amounts that cannot be supplied by the founders. Other R&D projects are similarly needful. It is a big world, and there are many ways to skin the entrepreneurial cat. If you can finance a venture on your own, by all means do so.

Martin Omansky Independent Venture Capital & Private Equity Professional

October 7th, 2016

Supplement: I re-read your message and here is my quick list: strategic partnerships; joint ventures; vendor financing; limited factoring; purchase order financing; bartering; minimum inventory strategy.

Ekaterina Sytcheva Integrated Marketing and Lead Generation Expert,Owner of Prospect Solutions.

October 8th, 2016

Before getting into debt, I think the first bullet would be to start selling and prove the viability of the idea to potential investors and to yourself. Marketing, marketing and more marketing... Smart marketing does not need to be expensive. If you would like to chat, contact me via http://www.prospectsolutions.ca/

Gulf Cloud First Cloud Service Provider Company in the Arabian Gulf

October 7th, 2016

Government backed Soft loan + whatever side income I generate goes into the project.

in Saudi Arabia, you can get help from SCSB  http://www.scsb.gov.sa/portal/       and in the US  Lookup SBA  https://www.sba.gov/about-sba/what-we-do/contact-sba

Zubair Ansari Founder and CTO, CionSystems Inc.

October 7th, 2016

Congratulations Jim, we have taken similar approach. The issue we ran into is "scaling" from organic growth. You run into issue to spend on marketing or engineering, we found that typical such startup may not have enough for both. Partnership, you have to get lucky to find the right partner who is willing to invest. Next challenge will be keep the solution relevant and also grow the market presence. This is very important for survival and attracting people to work for your company.

Ashley Titus Founder at RAGS Solutions

October 7th, 2016

In Qatar we have http://www.qbic.qa and after a 10 weeks program and demo day, will have access to funding and support over 2 years.
And SAP HANA is coming to Qatar on Nov 3
startupfocus.saphana.com/sap-events

Ashley Titus Founder at RAGS Solutions

October 7th, 2016

http://www.qbic.qa/

Andre Sr. Managing Partner | Business Funding | Speaker | Mentor

October 7th, 2016

As a Capital expert that secures funding for businesses, both start ups and established, let me preface by saying "there is no shortage of money available". The biggest problem we find is the framing of the opportunity. I.e. There is no clearly defined target market, financials are inaccurate, no or limited marketing startegy and best of all no predetermined payback to the investor. Visit our website: www.altimabusinesssolutions.com and read our blog: 5 Keys to Getting Your Business Funded. This is basic, but if you follow that principle you will go a long way.

Ken Ravon CEO & President @ Solutions Recovery International

October 7th, 2016

@Gulf Cloud,
Where is Arabian Gulf?

Betsy Ehrenberg

October 7th, 2016

I found several companies who needed the product and entered into a consulting contract for the biggest of the companies (Fortune 50) to pay for research, development, implementation and first set of revisions. The company needed the product so much that they paid the entire fee; however, we did not have the written specification as complete as needed. After four months, the company installed the software in another site. On the six month anniversary, we proposed the following: 1. We returned 60% of the development fees. 2. We gave them a license to use the software for all locations worldwide. 3. We leased the software to other companies using the first company as a reference account. 4. We gave the the first company 3% of annual sales for three years. Any questions? Betsy Ehrenberg Santa Fe, NM 505.424.8799