Please help me translate my business idea into actions
October 5, 2020 5:38 AM Subscribe
I have a business idea around content/research that I need to turn into a few actions and I'm stuck in a few points so I'm hoping the hive mind will help me get past them. Snowflakes inside.
I have the concept and its evolution very clear in my head, as well as initial monetization routes - I have explained the idea to a number of companies/individuals I already have relationships with, who would be willing to be part of the initial pool of supporters and investors. However, here are the three areas I am currently having trouble with:
1- I couldn't create a slide deck - yet. People want to see a formal presentation of a handful of slides that summarize the idea, and while I can verbally articulate the concept very well (to the point I even get people interested in putting money into the idea) I seem to be stuck in the creation of a deck that is compelling (this is related to point 2, below) and even in coming up with a name. How can I get past this?
2- I don't have business expertise. I have been working as a freelancer for a million years and have never had problems finding work, people have been referring me to others , so I have a reasonable reputation and, to an extent, have been successful selling my work to others. However, things have been largely under my control, in terms of how the jobs are sourced and done, and I never needed to have the business acumen that seems to be required from all these companies that really scale. I don't have a business degree, MBA, or anything, I'm a writer. How can I possibly take the next step and not get into real trouble as I build something larger? Also, at what point should I bring an investor in (even if it's an angel) even if there is money coming in from clients?
3- I need the right co-founder/partners. The scope of what I plan to cover is quite broad and I plan on addressing areas such as diversity and I am a white female. As well as being a lot of work I need people to help me out that can bring in the work and ideas that are needed for the business to thrive. Someone has suggested I can create an advisory board, but I need someone in the day-to-day aspect, but an employee might not have the same sense of ownership/dedication the idea needs. How can I deal with that aspect?
Your ideas are much appreciated. Thanks so much for reading this!
I have the concept and its evolution very clear in my head, as well as initial monetization routes - I have explained the idea to a number of companies/individuals I already have relationships with, who would be willing to be part of the initial pool of supporters and investors. However, here are the three areas I am currently having trouble with:
1- I couldn't create a slide deck - yet. People want to see a formal presentation of a handful of slides that summarize the idea, and while I can verbally articulate the concept very well (to the point I even get people interested in putting money into the idea) I seem to be stuck in the creation of a deck that is compelling (this is related to point 2, below) and even in coming up with a name. How can I get past this?
2- I don't have business expertise. I have been working as a freelancer for a million years and have never had problems finding work, people have been referring me to others , so I have a reasonable reputation and, to an extent, have been successful selling my work to others. However, things have been largely under my control, in terms of how the jobs are sourced and done, and I never needed to have the business acumen that seems to be required from all these companies that really scale. I don't have a business degree, MBA, or anything, I'm a writer. How can I possibly take the next step and not get into real trouble as I build something larger? Also, at what point should I bring an investor in (even if it's an angel) even if there is money coming in from clients?
3- I need the right co-founder/partners. The scope of what I plan to cover is quite broad and I plan on addressing areas such as diversity and I am a white female. As well as being a lot of work I need people to help me out that can bring in the work and ideas that are needed for the business to thrive. Someone has suggested I can create an advisory board, but I need someone in the day-to-day aspect, but an employee might not have the same sense of ownership/dedication the idea needs. How can I deal with that aspect?
Your ideas are much appreciated. Thanks so much for reading this!
Also, at what point should I bring an investor in (even if it's an angel) even if there is money coming in from clients?
Never take anyone's money unless you ABSOLUTELY have to. It is awful, horrible, and terrible, although I understand that it's a necessary evil sometimes. If you take money from anyone you know and care about, be sure they know the risks involved in early stage startup investing. (There's at least a 95% chance that they'll never see their money again.) If you take money from a real investor, e.g. a venture guy (and yeah they're pretty much all guys), be aware that they can and will take everything away from you if it's possible or seems advantageous to them.
Other than that, boost up that confidence and go go go! You can make a slide deck! You can learn the business stuff you need to know! It's really not rocket science, and if you're a writer, you almost certainly have the intellectual skills you need to figure it all out.
After my venture-funded startup experience, my advice is simple: do everything you can to bring in as few outside people as possible as long as possible. If it's possible to find a partner you trust and who has the complementary skills you need, that can be huge, but other than that, try to keep it small.
posted by nosila at 7:28 AM on October 5, 2020 [2 favorites]
Never take anyone's money unless you ABSOLUTELY have to. It is awful, horrible, and terrible, although I understand that it's a necessary evil sometimes. If you take money from anyone you know and care about, be sure they know the risks involved in early stage startup investing. (There's at least a 95% chance that they'll never see their money again.) If you take money from a real investor, e.g. a venture guy (and yeah they're pretty much all guys), be aware that they can and will take everything away from you if it's possible or seems advantageous to them.
Other than that, boost up that confidence and go go go! You can make a slide deck! You can learn the business stuff you need to know! It's really not rocket science, and if you're a writer, you almost certainly have the intellectual skills you need to figure it all out.
After my venture-funded startup experience, my advice is simple: do everything you can to bring in as few outside people as possible as long as possible. If it's possible to find a partner you trust and who has the complementary skills you need, that can be huge, but other than that, try to keep it small.
posted by nosila at 7:28 AM on October 5, 2020 [2 favorites]
The research you've done, testing the idea on potential clients, is good. But before you can create a slide deck, you need a business plan. This doesn't have to be terribly formal and structured, but getting something on paper will help you go beyond "concept" and "idea" and toward "plan." There are templates available online that will help you structure the plan.
Beyond that, it's kind of hard to offer advice here without knowing more specifics (which I'm not asking you to supply). Assuming you are in the US, my suggestion is that you take this to a local entity that helps small/startup businesses. Depending on states and regions, there are state Small Business Administration offices, regional economic development entities, chambers of commerce, business incubators, etc. Ask around, and someone will steer you in the right direction. The right kind of outfit will help you vet the idea, work up a business plan, suggest sources of financing, etc.
posted by beagle at 7:49 AM on October 5, 2020 [3 favorites]
Beyond that, it's kind of hard to offer advice here without knowing more specifics (which I'm not asking you to supply). Assuming you are in the US, my suggestion is that you take this to a local entity that helps small/startup businesses. Depending on states and regions, there are state Small Business Administration offices, regional economic development entities, chambers of commerce, business incubators, etc. Ask around, and someone will steer you in the right direction. The right kind of outfit will help you vet the idea, work up a business plan, suggest sources of financing, etc.
posted by beagle at 7:49 AM on October 5, 2020 [3 favorites]
Came here to say the same as beagle re: researching what resources are available to you as part of economic and small business development in your area (especially if there's a tech angle, there's often special funds or supports for founders in this space). All the mythology around the "self made" entrepreneur is BS - the people who are successful usually got lots of advice and support along the way from different sources. Find the sources that are relevant to you! And maximize what you can get from them! And then thank them kindly, buy them a nice bottle of wine or whatever and that's that. As to your specific questions...
#1) Powerpoint suggestions: start with this template. Then if you have the budget, hire a designer who specializes in powerpoint to polish it.
#2) As others have mentioned, avoid taking money from investors if at all possible. If you have access to a line of credit or a small business loan, use that before considering investments. And again, check for any/all grants, loans or supports that might be available in your area.
#3) Do you really need a partner? It doesn't sound like you do... you can hire someone with options or a rev share or similar incentive.
posted by dotparker at 8:25 AM on October 5, 2020
#1) Powerpoint suggestions: start with this template. Then if you have the budget, hire a designer who specializes in powerpoint to polish it.
#2) As others have mentioned, avoid taking money from investors if at all possible. If you have access to a line of credit or a small business loan, use that before considering investments. And again, check for any/all grants, loans or supports that might be available in your area.
#3) Do you really need a partner? It doesn't sound like you do... you can hire someone with options or a rev share or similar incentive.
posted by dotparker at 8:25 AM on October 5, 2020
The first question in how a big of a business is this going to be and what kind of team will you need to get it through the first stages? Is this really a one person company where you do 80%+ of the work and hire some consultants to fill in? Or do you need to ramp up to 20 or 100 people as soon as you get the funding to make it possible?
Second, I think the idea of finding a partner with complementary skills makes a lot of sense. Youwill probably want to give some equity, it aligns your incentives, but the amount will really depend on the role and their experience level - it doesn't have to be a 50/50 partnership. However, if you do, you will really want to spend $ on a lawyer who write up an agreement that not only protects both parties but also sets you up properly for later dilutions of equity if/when you get outside investors.
posted by metahawk at 4:58 PM on October 6, 2020
Second, I think the idea of finding a partner with complementary skills makes a lot of sense. Youwill probably want to give some equity, it aligns your incentives, but the amount will really depend on the role and their experience level - it doesn't have to be a 50/50 partnership. However, if you do, you will really want to spend $ on a lawyer who write up an agreement that not only protects both parties but also sets you up properly for later dilutions of equity if/when you get outside investors.
posted by metahawk at 4:58 PM on October 6, 2020
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As for not having an MBA, don't worry too much about that. Mark Zuckerberg didn't have an MBA, or even a bachelor's degree. Neither did Ray Kroc, or Henry Ford, or innumerable other titans of industry. You know who did? Most of the guys at Enron and Lehman Brothers. An MBA is just a credential; it's a symptom of a couple of societal issues (namely, the increasingly impersonal nature of hiring and the need for additional credentials to distinguish oneself as college education becomes more and more widespread, even among non-white collar jobs). What you learn in business school can help you run a business, but it's not required. You can pick up the same knowledge elsewhere, e.g. by running a freelancing business, while you also become an expert in the field. In fact, there's a case to be made that having run a successful business already, even if unrelated, is better than merely holding a degree. You've already proven you can hustle, and you likely already have at least a rudimentary understanding of finance. If your business ends up being successful, you can always hire a COO later.
posted by kevinbelt at 6:45 AM on October 5, 2020