Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.

Having a good idea but dont have enough money to invest

share|improve this question
You should be more specific on the industry, as that probably makes a lot of difference. Example: building computer software is very cheap compared to computer hardware. – Dario Solera Oct 24 '10 at 17:00

2 Answers

Bootstrap it... break the idea down to its core, so that you can build it as effectively as possible.

Once you have an idea of how much capital is required multiply it by 2x. That is how much money you will have to raise.

Then: 1. Use your own cash... cut down your expenses, eat top ramen, and invest your own money 2. Ask family and friends to invest.

Once you have gotten as far as you can get, then look for outside investment. Investors are very unlikely to put their money behind an idea if you have not. An idea is worthless, its the drive and passion to build a business that most investors look for (to exploit) and can be profitable for them.

The reason you want to aslo avoid investors is the more they put up, and the earlier the less you will end up wiht.

Try to minimize your development costs as much as possible. Use studen labor (interns), offshore, etc.

Depending on the idea, it can be built with a couple of people usually, to the point where it will have enough traction to raise investments or use profits to grow .

Best of luck

share|improve this answer
I agree with Franky: "Investors are very unlikely to put their money behind an idea if you have not. An idea is worthless, its the drive and passion to build a business that most investors look for (to exploit) and can be profitable for them." Don't go looking for investment till you have something more than just an idea to show. Everyone has ideas - execution is what's hard. – Joseph Fung Oct 27 '10 at 1:06

There are a few programs I know about that might be of interest to you:

Angel List

Kick Starter

Both are good places to post your idea and if of any interest to angel or any other type of investors, your idea could get funded. Good luck.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.