I’ve been coming up with so many business ideas lately and the problem that has arise to me is that it always comes to mind that the idea will not work. Similar to the first post, I’ve been keeping my mind open to all the options that are available in creating great ideas. But somehow this thing in the back of my mind somehow always comes up saying the idea probably won’t work.
I’ve been listening to great speakers talk about this issue and it’s very common. One of the speakers who I appreciate so much and would love to have the chance to meet is Jason Nazar. CEO and co-founder of Docstoc, he spoke about how we shouldn’t be worried if an idea will work or not. We actually instead should be worried if that idea exists within the market because if it doesn’t exist, then you won’t be able to sell it.
It doesn’t matter if the idea we have already exists or if it sounds stupid, we should take that idea and figure out how we can make it different and improve it to the public. And that’s what I think we have to put in focus, rather than fearing if our idea will work or not, we have to execute it. So how do we know if our idea will work?
There are several questions we must ask ourselves first in order to make that idea become a reality. Similar to a business plan with getting down to specifics, two questions that are important to ask are: Who are our audience? What is their problem?
Figuring how we can deliver it and create demand will come afterwards.
So how do you know your idea you came up with will work? Have you doubted yourself with that idea? One advice that has begun to get implanted into my head is that when we have an idea, lets execute it with the least amount of cost possible. That way you won’t risk a lot and you can start all over again with out the weight on your back from the previous idea.
It’s awesome coming up with many different ideas, but I think when we have the mindset of thinking if it will work or not should be forgotten. I always speak with my mentor about it and if you’re in that struggle of figuring which idea will work or not, I would suggest talking with a mentor to advise you which is best.
There are many ways you can do to fund your business. Many people who I’ve spoken with had been fortunate enough with getting funds from venture capitalists and began building their projects from there. If you’re wondering or clueless of where to look to finance your starting business, I’ll give you a quick list of what I accumulated that helped me look into, that hope it can help you as well.
- Bootstrap funding
- Crowd funding
- Family & friends
- Angel investors
- Venture capitalists
This list demonstrates the the options you have to finance your starting company, but me on the other hand, I find it difficult to see myself going to a venture capitalists or angel investor giving them my pitch of the company. You may ask why? Because I know I’m just a young guy with no experience owning a big company yet, asking for a certain amount of funds puts them at a much greater risk than one whose already create two or more businesses in the past. But I will keep in mind that having a great relationship with them can lead to great investment in the future. Banks? Nope, banks won’t do, I can for sure say they apply interests on their loans and you’d be lucky if they actually grant you one. Avoiding debt should be one of the things to keep in mind. Family and friends? I love my family and some friends may be so-so, but I’ve read about and witnessed this. The advice is that most of the time, doing this could result in conflict ending relationships with them. The only outcome I have as planned is bootstrapping my business.
What is bootstrap funding? In short words it’s personal money you’ve saved up. There are also several methods of bootstrap funding, but I personally have made the route of saving some income to accumulate it to a certain goal I made earlier this year. I find it complex because it’s the sweat and tears approach and I feel it takes longer than that of raising capital from investors. Yes I’ve heard the usual that you can start a business with up to a minimum of $350 cash, but what I’m willing to achieve is getting over that amount.
How do you come to this approach? What are your experiences with raising money to fund your business? Did you experience similar problems? How did you overcome this process?