Publication number: ELQ-50344-1
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How to Start A New Venture With Limited Funds
8 Steps To Starting A New Venture With Limited Funds
Introduction
Now is the time to be an entrepreneur and create a business from your passion. The cost of rolling out a business has never been lower – it only takes a few hundred dollars to incorporate a Limited Liability Corp (LLC) online, create your own website, use social media to get attention, and you are in business. In the early Internet days, it would cost a million dollars to get this far.
On the other hand, everyone is doing it, so that means more competition, and the market and technology are changing faster than ever before. Thus you have to do your homework to stay ahead of the crowd. Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion).
Even the homework is easier, with free and mobile access through the Internet to more business assistance sources, opportunity data, investors, and competitor details around the world. Yet, as an angel investor myself, I can attest that many potential entrepreneurs try to take shortcuts, or ignore the realities of business. I suggest the following sequence of startup preparation steps:
- Step n°1 |
Create a business entity early to isolate business efforts.
Co-mingling personal and business funds and accounts creates legal risk and tax liability, and makes your efforts look like a hobby. These days you can create a C-corp or LLC online quickly at a low cost, to serve you well in signing partners, intellectual property, investors, and revenue.
- Step n°2 |
Prepare a pitch deck to document and share your plan.
Advisors and investors need to see your whole story in as few as ten slides. Make sure you cover not only your solution, but also the opportunity size, competitors, financial projections, and team qualifications. A full business plan and financial modelling can come later to add details.
