We have launched a new website (last week) which focuses on selling ready and customized industry databases and reports, apart from providing data related support solution.I know this has value in the market but we have got stuck with almost no fund.
With no clients and huge expenditure ahead, what should we do?? I need funding..via this we aim to expand our Delivery Infrastructure and to garner client traction to our portal via Sales & Branding.
HOW, WHOM to approach? Pls help with your solution.
While there is potential value in your industry databases and reports, that value is worth nothing if there isn't a customer on the other end. In order to viably approach external funding sources, you will likely need to bootstrap and iterate your business model until you show that your product has value in the marketplace.
I've been in the market before pitching a pre-revenue business and I can say with certainty that it is an incredibly difficult proposition. The companies that are typically able to raise capital in these situations feature founders with established entrepreneurial experience (ideally, with successful exits) or some sort of proprietary technology.
Best of luck, but my ultimate advice is to start small and build slowly. From the looks of it, you are putting the cart in front of the horse. I would imagine offering your product on a free or trial basis would allow you to promote in a cost-effective manner. At this stage, your goal is to prove the concept, so any progress here will also help with potential fundraising down the road.
Before you approach an investor or investing body, invest time and energy in putting your house in order. Ensure you have lucidly defined goals and objective, validated reasoning for required capital investment, and necessary collaterals in place to gain traction and build momentum. In a nutshell, do your homework before reaching out to seek help.
In my more than a decade of experience I've worked closely with various entrepreneurs and helped them plan around raising investment. One common mistake everyone makes is to seek investment without having a pragmatic and realistic future plan in hand.
There could be plethora activities to perform and parameters to brainstorm while planning to seek investment. Let me know if there's anything in specific I could help you out with. I am just a clarity away.
People often joke that the first rule about raising money is that you raise money when you can, not when you need. This way you are not stressed in getting the funds and this is a long procedure...
Instead on focusing on getting an investment, try getting clients. If you have a working product, release a beta version, get subscribers (even for free) and start testing the system. Getting an investment will take your focus from the product and this is not something you can do right now. I would recommend reading the blog by Alex Turnbull from Groove. You will learn a lot and get ideas on how to get paying clients. Once you will have that, you will be able to go look for an investment.
One viable option is to attain unsecured bundles of high limit business credit cards available in your condition based on two criteria. Have an entity formed, costs $500 by any number of low paid highly indebted attorneys, and personal credit scores of 700 hounded. This financing is available up to $200,000 and convertible to cash and used for any businesses purpose. Such as paying for the fees to attain the funding, payroll, qualifying for additional loans by providing collateral or investments into ones business, paying for the minimum %2 monthly payment on funds used, reports only on business credit protecting your personal credit unless on defaults on the loan, start ups can report no income or assets and attain funding but at lower amounts, as customary with credit cards, income and assets are stated no financial documentation is requested, once approved there are no reviews on how you utilize your loans like bank lines of credit do rarely and monitor your credit, and can convert your lines of credit into term loans and take away your existing available credit with no recourse or obligation to justify changing terms and conditions. You can also attain equipment lease financing to purchase or ever to take equipment you have equity in and you will attain %100 lease financing by signing over title, and use the funds as you choose. You can attain free business credit building systems and start to offset how your personal credit may be showing signs of financial stress simply by making $25 dollar monthly payments on five merchants your buy products form each month and pay back before 30 days. One can attain a $7,000 merchant credit line apporved by one company that approves with no criteria and provides low payment options for business services including marketing, web SEO, web development, provide credit to your clients that purchase your products in the thousands if I am not mistaken, office equipment, computers business and personal travel packages, all of which as very low monthly payments, only subject to your submitted pay stub or business revenue. I believe there is about a $100 fee. All your payments report to your business credit. Also, make this financing available to your potential clients can make deals happen that otherwise wouldn't. Funding is attained in two weeks. This is the best I have for you. Oh, zero interest for up to 12 months on the unsecured business credit lines. Give me a call and you can get an underwritter to provide a prequalification in 24 -48 hours, and an assigned expert business adviser to review your report and your options. There is no harm to your credit, no up front fee, fees only if one attains a loan, and one can uses a partners credit to qualify if needed. You always have options if you are not thinking linearly. Use other peopoles resources, get up and running with their merchant credit where you can send out mass marketing if you know what works to get clients comming in large numbers. Look for Jay Abraham on how to find options that everyone has but over looks. With templates, case studies, partnerships, find a business that sells similar or not, products they can't move eight er and bundle them with yours and set up a fifty percent or more take on the products you sell of the other company. Find a company that has a sales staff but no product to sell or not enough market and put them to work for you for a full month and share in the profits one attains every 30 days. Come on. You can do this. Keep reaching out.