How do you raise the capital you need?

So I have this great new idea, its innovative, creative, and I think it has a ton of potential. Nobody has even done something remotely like it before.

But it costs 25k for me to develop...

so does anyone have any tips on how to generate this kind of cash...quickly?

(Investors wont trust a 17 year old)

 

well,thats a lot,you should try to find partners to invest

 

That's where you're wrong.
Invertors trust anyone who obviously knows what they're talking about and can clearly explain their plan to them.

 

Correct. Age doesn't mean anything. Unless you are a 10-year old kid.

 

I understand what you guys are saying, and dont have any ground to dispute it. I am just saying that it would be tough for me as an investor to put money into a 17 year olds ideas and plans. Being 17 just doesnt help haha

 

I also have a great idea however will hopefully cost <$5K. To raise capital I am going to freelance in copyrighting and graphic design.

 

The problem with leanding to a 17 year old is that they haven't yet proved they have the business skills to make the project a success. A good idea takes a lot more than money to become profitable.

What is going to cost you the 25k? This makes a big different to what kind of investment you need.

Also In the UK we have things called business angels which help with the management side as well as the fiunding. Maybe this would be a better way to go. Also how unique is the project, maybe you need a business partner rather than a lump of cash.

 

The development will cost around 25k, so I need that to start with. The idea is completely unique and has never been done before. It is very innovative, and I am very excited about it :-D

 

Mine needs only $6K to materialize but until now I'm still in halfway completing it...

 

The problem is in most countries 17 year olds can not enter into contracts so finding someone to fund this for you may be hard. and you need to be more specific...just saying "the development will cost around 25K" without a break down of where the money is going will definitely hurt you when trying to finance your proposal. you need a real business plan and then get someone 18 or over to enter into a contract on your behalf

 

i'm in the same position as you spamx182, i need capital .

 

Even if you are in legal age, I still don't want to put my money for we do not know each other personally...

 

You "think" it has great potential? What actual you study have you done to verify the potential of this idea? You will need more than "thoughts" to convince an investor, no matter your age...

 

As I said, Im not trying to convince any investors. The few people that know about this idea love it as well.

It will produce a substantial amount of revenue, no doubt about it. When I say great potential, I mean potentially revolutionary.

 

Age means nothing.

Didn't any of you people read about the 3 year old kid that now has a patent on a product and is set to become very rich by time he can even talk properly?!

 

How many investors have you gone to so far?

 

• If you've written out a good business plan, that's generally the way to entice investors and banks.
• You can also get investments from your government depending on where you live (in the US, you get it from the SBA)
• There's also loans you can apply for and good old credit card debt
• If you have good friends/family, you can give them a percentage/share of your business in return for investments
• And finally, if all else fails, you can put your idea on hold and build some capital yourself first. This would take some patience but the benefit is you build your own no-strings-attached cash pile and gain some experience along the way.

A combination of any of these will work too

 

SelfKill really nailed it on the head with his suggestions. That being said, barring illicit activities, generating 25 grand quickly isn't easy. At all.

*IF* you want that money, you will have to be able to demonstrate to potential financiers the validity of your idea. The only way you're going to do that, barring rich uncles or senile grandparents that are loaded with cash, is through a well-designed, professional business plan.

This bad boy is what you show to potential investors. Be certain that the plan clearly illustrates to the reader why they should invest in the business, what do they stand to gain from it?

You can either borrow the money, incurring a legal obligation to pay it back, plus interest that is higher than what the person could make by putting it elsewhere (otherwise why invest in your business?).

Alternatively, you can hand out equity in your business, sacrificing some portion of ownership in exchange for money and capitalize yourself that way.

Either way you need a business plan.

I would recommend the forums at StartupNation if you want to seek further advice that goes into greater depth than what I've provided thus far.

 

Get a regular job until you save up $25k? If you work 40/hrs a week then you should be able to save it up in no time and then you can take your ideas to the next level without having to share the profits.

 

Do some freelance work and save up a few grand then go to family members with a business plan and make sure to offer to return the money with interest. Also try and find a way to start with less capital.