Getting Investors

Discussion in 'Starting & Running a Business' started by albanga, 31st Jan, 2020.

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  1. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,700
    Location:
    Melbourne
    A couple of years ago I decided to build a hobbie website which I did a very soft launch of last year.
    The concept was well received but as I expected it still needs quite a lot more development before it can be taken anywhere close to public.

    To get to it’s current state a friend of mine who is a brilliant developer built it at 1/4 his standard rate so it only cost me a few k.
    He is still onboard at that rate but my issue is I just welcomed my first child so don’t have much spare $$$ lying around.

    So I am now toying with the idea of seeing if people want to invest so it doesn’t die in the water. However I’m not just looking for $$. I’m also looking for people who can help bring something to the table in terms of helping it grow. I know a few of my mates would probably invest but they are tradies who tbh can’t add anything except $$.

    What I have is:
    - A basic working platform
    - A registered domain
    - A detailed roadmap

    And that’s it! So at this stage I haven’t even setup a company which is probably the next logical step when looking for investors.

    So that’s a bit about my story and where I am at. I am going to self fund the next round of improvements which should only be a few hundred dollars. These however will make a big difference to how the product can be used.

    But after that point I’m not sure what I should do. I do have a few friends who I know could add value?
    The end stage of the roadmap is a monster play. But would require a gambling license which sets you back a measly 25k without even taking into account all the legal costs to get it there.
     
  2. Daan Jansen

    Daan Jansen New Member

    Joined:
    17th Apr, 2020
    Posts:
    3
    Location:
    Melbourne
    You'll need a proper business plan, fully written out.
    There's no serious investor (who doesn't know you personally) who will be investing money and/or experience without a fully worked out business plan.
    This includes fully worked out budgets (with quotes to back most of it up), marketing strategy, legals, time line, how the profits are generated (and why) and so on.

    The more information, the better.

    I get that "more information" feels like you're dropping the ball in terms of protecting your idea and in a sense, you are. Here's where a NDA (Non Disclosure Authority) comes in to play.

    Share your fully worked out idea after NDA is signed, so the prospective investor gets an idea of how much money needs to be put in, what you'll be doing with the money, what the return will be, how this will be paid out (cash, shares) and when.

    Plenty of stuff I haven't mentioned yet, but trust this will give you some food for thoughts.

    Daan
     
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