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Raising funds to cover startup costs

Discussion in 'BlackHat Lounge' started by Falrish, Sep 30, 2015.

  1. Falrish

    Falrish Regular Member

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    Hello all,
    I am looking to help out a friend in raising funds to start a small business online selling TCG cards and memorabilia.
    I am asking for your help in figuring out creative ways to raise the $15,000 that will be required to get everything rolling.
    I have a few ideas in my head already with crowd source funding and the likes, but would like to see what your creative minds can think up.

    I know many of you are going to say things like "go to the bank" and the likes, but please try to keep that to a minimum.
    If you do not have something helpful to contribute, please refrain from responding just to get a higher post count.

    Thank you all in advance for this advice.
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Go to the bank. BTW Post count doesn't increase in The Lounge.


    But seriously, the only options apart from Crowd Funding/Bank are friends and family.
    Or working and saving until you have the start up capital.
    It isn't really something that would attract investors and the Marketplace for those collectible cards looks overcrowded and sown up by the big players.
     
  3. Falrish

    Falrish Regular Member

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    Yes and no. The "Big Players" as you put it, are not into singles. There are many online for singles, but they charge an arm and a leg to ship. They are looking to open the niche in the area we are from and try to expand from there, with the Shipping costs being a break even point and the profit coming from the actual sales.
     
  4. Ste Fishkin

    Ste Fishkin BANNED BANNED Jr. VIP

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    $15,000 is not much.

    If you don't have this then chances are you're young and lazy. Working at McDonalds full time can get you that much in under a year.

    If you're young and lazy chances are you won't have the experience or ethic to make your business work. Please do not borrow money from your family as when it all goes wrong (90% of businesses fail before 5 years so chances are it will) they will be out of pocket and you will fall out with them.

    Get a job, risk your own money.
     
  5. Falrish

    Falrish Regular Member

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    @Ste_Hughes: This is not me that is looking to raise these funds. I am trying to inspire a friend of mine with original ideas to raise the funds. I understand that anyone, given the right dicipline can do this, but the friend is not looking to start this up in a year. They want to get it running in the next month or so.

    @Everyone Else: If you do not have anything constructive to add, please do not post. I am looking for inspired people who can add their two cents for original ideas to raise funds.
     
  6. Duffers5000

    Duffers5000 Elite Member

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    Breakdown what 15K is required for. That would be a starting point for most people.
     
  7. Vic Sage

    Vic Sage Jr. VIP Jr. VIP

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    http://foreverjobless.com/you-do-not-need-money-to-start-a-business/
     
  8. Ste Fishkin

    Ste Fishkin BANNED BANNED Jr. VIP

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    If your friend can't even look for himself to find ways to get funding he is going to struggle a lot when he starts his business.

    I wish him luck, but I doubt he will last 6 months.
     
  9. Reaver

    Reaver Jr. VIP Jr. VIP

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    You really can't stop people from being snarky to you, y'know. FYI, if you don't like what someone has to say, just ignore them. That is always an option.

    Now, in answer to your question: get. a. job.

    I'm not being snarky. Get a job, save up the money. There's no guarantee that crowdsourcing is going to work. And even if you raise all the capital you need through crowdsourcing, it sounds to me like both you and your friend have no idea wtf you're doing. You'll need extra money, because businesses always need more startup capital than what you estimate. Always.

    Also, as someone with a lot of experience in life, let me give you some advice: grow thicker skin. Everyone isn't always going to deliver information to you in a nice and positive way. And you really can't be sensitive on the internet. That's just asking for it. Stop overreacting, take what knowledge you can from everyone here and go about your business. You'll thank us later.
     
  10. Falrish

    Falrish Regular Member

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    @Duffers5000:
    Basic Breakdown of the funding requirements would be:
    $500-1,000 Website Designed and Populated with Product
    $10,000-$14,000 Initial Product Stock
    This would give a basic product stock to enable better rates and sales.

    @Ste_Hughes: They are looking themselves as well. I am helping out as I can.

    @alwaysinvisible: I understand that you are saying that they need to get a job, however, they are already doing this, and we are working on ways to decrease the turn around time of the startup.

    I am fully aware that people are going to bash and be snarky. And I am not offended. Just looking for ideas, is all.
     
  11. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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  12. Falrish

    Falrish Regular Member

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    I am not sure how much they are investing, this is just what they are looking to get from funding. I am just trying to get some ideas on other ways aside from the ones that everyone says (bank, friends/family, get a job, crowd funding). Trying to be inventive, but I wanted to get your thoughts on different ways to raise funds.
    Not looking for a hand out, just ideas to add to the arsenal :)
     
  13. rushuna

    rushuna Regular Member

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    You are violating the cardinal rule of Shark Tank and other business laws (if they even exist lol)


    This is too risky. I'd run away if I was an investor. You and your friends haven't even established the demand for the product. You don't even know if the customers want the product or not. Have you done market research? Did you do pre-selling? Did you have customers willing to throw you money because this is the product they need?

    No. You are buying product first and waiting for the customers to come later. And, that's retarded. You are going to raise a bunch of money for a product that hasn't even been proven yet.

    Now, I don't know enough about the TCG market but you should start small. Start selling 1 or 2 cards and build your way from there.

    And, since you're starting your website... where's the traffic coming from? whose your audience? how much will it cost to bring those customers in? how are you going to convert them? what's your competitive advantage over the others? etc
     
  14. Falrish

    Falrish Regular Member

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    @rushuna: I am not asking for investors mate. Read what I have written throughout the posts. You know nothing of this line that I am running, so do not act like you do.
    As for the "start with 1 or 2 cards" comment you made. They are starting with one type of card, one series. There is a customer base already that is small, but we do know the requirements and the likes to push it further. The website is to display what is in stock, more so than to drive traffic. Anyways, I will just leave it at that and wait for people to give actual inventive ideas.