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Old 06-06-2018, 11:13 AM
 
718 posts, read 762,641 times
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Forget friends & family, that is not a good idea. It does usually cost $$$ to get to a Minimum Viable Product.
For the software related business I have figured out and completely drawn-up it will cost at least $300,000 in development costs and no banks will lend that with $0 revenue. I am not a techie, not a coder so I need to pay for that work to be done either by hiring people as employees or by off-shoring it. So any suggestions?
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Old 06-06-2018, 11:47 AM
 
Location: North Idaho
24,633 posts, read 32,267,360 times
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For $300,000 I'd go back to school and learn how to code it myself.

If it is a really good product you can get start up investors but they will take more than 50% of your company in exchange for their money.
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Old 06-07-2018, 07:30 AM
 
5,109 posts, read 3,403,072 times
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Mortgage your house, use your savings, cash in some of your retirement account.

That's what most people do when they start a business.
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Old 06-07-2018, 07:38 AM
 
28,192 posts, read 21,860,034 times
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Quote:
Originally Posted by KaraG View Post
Mortgage your house, use your savings, cash in some of your retirement account.

That's what most people do when they start a business.
What if you don't own your home?

What are some other ways to get seed money to start a business? Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
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Old 06-08-2018, 07:43 AM
 
Location: Lee County, NC
2,748 posts, read 1,056,764 times
Reputation: 3399
Quote:
Originally Posted by Magritte25 View Post
Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
Yes.

You could try to raise money from private investors, but it's difficult and you'll have to give up a portion of your business to them in exchange for funding.

You could also get a personal loan if you have decent credit and/or are willing to pay a ridiculous interest rate. If you're trying to raise $300,000 like the OP, this isn't a viable option obviously.

Still, the best way to do it is save for a few years, but I realize everyone's situation is different and that may not work for some.
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Old 06-08-2018, 09:43 AM
 
Location: North Idaho
24,633 posts, read 32,267,360 times
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Nobody is going to loan you money unless you can prove that you can pay it back. With an idea that isn't even a business yet, there is no way to prove income.

Most business entrepreneurs start with their own funds and get money from their parents. If the business idea is really brilliant, you can sell a large percentage of the business for start up money. But even then, you have to be able to prove you know how to start and run the business and investors like to see the business already organized and systems in place. You have to show that you know how to sell the product.

If you patent your idea, you might be able to get a good qualified coder to come in as a 50% partner in exchange for doing the work.
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Old 06-08-2018, 09:55 AM
 
Location: NJ
26,656 posts, read 32,366,695 times
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Quote:
Originally Posted by SailCT View Post
Forget friends & family, that is not a good idea. It does usually cost $$$ to get to a Minimum Viable Product.
For the software related business I have figured out and completely drawn-up it will cost at least $300,000 in development costs and no banks will lend that with $0 revenue. I am not a techie, not a coder so I need to pay for that work to be done either by hiring people as employees or by off-shoring it. So any suggestions?
you want $300k to start a software business but you arent a techie or a coder. that probably means you cant raise money for the business outside of personal loans or your own assets.

maybe try to pitch the sharks on shark tank.
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Old 06-08-2018, 04:06 PM
 
5,109 posts, read 3,403,072 times
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Quote:
Originally Posted by Magritte25 View Post
What if you don't own your home?

What are some other ways to get seed money to start a business? Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
I'm not being snarky either when I say 99.9% of businesses do not get seed money from strangers/investors/banks.

Most start very small, investing their own money and mostly time, working late hours and weekends getting the business set up and rolling, if it's a workable idea. Not all ideas will work in real life. People may not want your idea or you may not be able to offer it at an affordable price.

You could work part time in a similar business, saving the money and learning the ropes, while working on your business plan.
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Old 06-09-2018, 12:52 PM
 
28,192 posts, read 21,860,034 times
Reputation: 16622
Quote:
Originally Posted by somebodyfromnc View Post
Yes.

You could try to raise money from private investors, but it's difficult and you'll have to give up a portion of your business to them in exchange for funding.

You could also get a personal loan if you have decent credit and/or are willing to pay a ridiculous interest rate. If you're trying to raise $300,000 like the OP, this isn't a viable option obviously.

Still, the best way to do it is save for a few years, but I realize everyone's situation is different and that may not work for some.
Thanks. The amount I'm thinking of is way less than OP's needs.
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Old 06-09-2018, 12:53 PM
 
28,192 posts, read 21,860,034 times
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Quote:
Originally Posted by KaraG View Post
I'm not being snarky either when I say 99.9% of businesses do not get seed money from strangers/investors/banks.

Most start very small, investing their own money and mostly time, working late hours and weekends getting the business set up and rolling, if it's a workable idea. Not all ideas will work in real life. People may not want your idea or you may not be able to offer it at an affordable price.

You could work part time in a similar business, saving the money and learning the ropes, while working on your business plan.
Thank you for the advice.

Its important to be realistic before embarking on big ideas so I appreciate your candor.
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