Where to get funding for website business?

Discussion in 'Website Development & Design' started by HaleTheLegend, Jun 11, 2009.

  1. HaleTheLegend

    HaleTheLegend
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    Hey BAF users!

    So I wanted to know the different ways I can go about getting money to start up a website.

    For now I was thinking of going with a bank loan? any other ideas? Thanks in advance
     
  2. expertC

    expertC
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    These days, banks are not very keen in giving any loans, unless you could provide a security.

    If you want to get external funding and don’t want to use “family and friends” option, then your best bet is business angels. Google “business angels” for your area and see what options are available.

    Good luck!
     
  3. Fergal

    Fergal
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    Hale, what country or state will you be setting the business up in? Once I know that I should be able to give you some ideas.

    Have you done a business plan for the site, if not are you planning on writing one?
     
  4. nbshopper

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    I think there are loan websites like zopa.com? No idea if that's a good idea or not, but it's an option. Where are you based? You might find a web development company who will develop your idea on a revenue share plan? If it's a good one let me know :)
     
  5. bobsmith

    bobsmith
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    The best way to get money is to take on a financial partner.

    If you build the website and develop the technology there are plenty of people that would invest in good ideas. On the same note, there are very few people that will invest in a dream with nothing behind it.

    You can get website hosting for $10 from just about anyone. So you could build what you need cheaply and then upgrade when you get money.

    That is what google did. They set up a bunch of junk in a garage, developed the programming and then they had people begging to give them money. You know the rest of the story.
     
  6. Superbs

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    i second on that, or get a group of people interested in that specific niche. if some couldn't help with funding they can always help with the site contents or designing part.
     
  7. HaleTheLegend

    HaleTheLegend
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    Well im starting the business from here in Maryland USA but its sort of a social network/information site for basketball so hopefully it will be nationwide

    edit: i absolutely plan on writing a business plan but dont quite understand how im going to have projections for 3 years and stuff since its the internet and theres tons of users
     
    #7 HaleTheLegend, Jun 14, 2009
    Last edited: Jun 14, 2009
  8. Fergal

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    Hale, remember that projections are your best estimate. No one expects them to be 100% accurate, in fact the only certainty you will have with projections is that things won't work out the way you plan them.

    Are there any government funded support agencies for new business start ups in your area?
     
  9. HaleTheLegend

    HaleTheLegend
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    Well im not sure to be honest, i will look tho.

    I more of wanted to know if people actually agree to give loans to websites expecially with "social networks" comming a dime a dozen nowadays and only a couple are actually hits.
     
  10. Fergal

    Fergal
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    Banks will fund website based businesses in some instances. Irish banks are coming under increased pressure from the government to provide loans to start up businesses. If it's the same in your state, your local banks might be happy to talk to you. There's no harm in asking anyway, the worst they can do is say no.

    Banks will want to see a business plan before they fund your business and they will want reassurance that you will pay them back their money.

    Venture capitalists will generally only look at potentially large projects, with projections of huge returns.

    You should seriously consider the points bobsmith makes in his post. Ask yourself if it would be possible to bootstrap your website business, i.e. finance it from your own resources.

    Please keep us updated as to how it is working out for you and let us know if you feel that there is anything else we can help you with.
     
  11. HaleTheLegend

    HaleTheLegend
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    Thank you to everyone who has replied, expecially you Fergal. Im going to do some legwork ask some banks and ill be back with more questions or hopefully to let you guys know i got the loan.

    But for basics on the site im a personal trainer her in the us for basketball players, i do everything for free for kids and im only 20 years old myself. The basics of the site is its a social network and i would like to provide free basketball tips/info to its users. But there are many concepts i have that i believe will make it successful that i dont want to release :D

    Thanks all
     
  12. Fergal

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    Good luck with talking to the banks. Remember that the banks will be looking for evidence that you can repay them back the loan. So before you approach them, try to have a clear view as to where your website revenue will come from. Even if you don't have a business plan yet, be ready for the revenue question and have a clear and concise answer prepared.

    It's also worth remembering that banks want to give out loans, it's how they make their profits. Going in with a helpful conciliatory attitude will take you a lot further than a negative attitude based on a belief that they don't want to lend money to you.

    Please post back to let us know how it goes.
     

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