ForumsFinancing Tips

Ok, I like the input. We have already cut cost off of where we can. We got behind a while back from our original projections because of damage to our office from a storm. Since then we have never every recouped. We do design and development work. Mainly web based applications but we also do client side things as well. We are paying ourselves some but that was one of the first things to get cut.

Due to the money we had to spend to repairing our computers and a few things like that we didn't get to do the marketing we wanted. The main way I see for this to work is if we can start bringing in more traffic. We want to increase billable hours and we already have the infrastructure to do it, But now we don't have anything left for marketing. The idea I have is to get a small loan to jump start our marketing. We want to advertise in 3 or 4 different ways. We have a flyer going out in the local chamber of commerce news letter this month, we got a small basic ad in the yellow pages, we are going to experiment with digital bill board advertising through sundrop, and do some mailers out to local business. We want to drive awareness of our company and get our name out there among the crowd. We already have a small portfolio for people to look at and a web site. If we can push are name and expertise we will get a little more of the market. Right now in our local area there is very little competition but of the one or two companies already here they are very well known. We are trying to show people that there is an alternative, and even if we get 1-2 new clients a month that will make us break even.

So it is not really much. But it is how I am going to present myself. No we don't own real estate or any real assets, just some computers. But we really don't have any long term debt either. So I am trying to write a business plan that doesn't sound desperate. This can really work if we can increases Revenue. The only way to do that is to get a loan that will cover 2-3 months of marketing. So I am estimating about $15,000 thats not much but would do the trick. I want a really strong business plan and loan package that will really sway a lender to say yes, I see you are in trouble, I know you are in trouble, and with this aid you will defiantly be out of trouble and will be able to pay back the loan.

Thats what I need help with is figuring how to present that.

Thanks guys for all of your comments. I look forward to hearing more form you.

So what you need is low cost marketing. let me tell you what I am doing and maybe you can take off on that.

Our business application is being inititially marketed to aircraft leasing companies. I went to Clusty.com and did a search for aircraft leasing companies and filtering through them made a list of the top 100, top 2nd 100 and top 3rd 100 companies. These would be targeted in three marketing campaigns separated by a 14 day time period.

We have a powerpoint presentation with a voice over (ppt 2007) and we put it on the small business card sized CD's at a cost of 1.10 each so thats 330.00 + tax

Then we made up a foldover brochure the size of a #10 (business sized envelope). There is a spot for the CD and a spot for a business card. Office Depot prints them for 84.00 per 100.00. Thats 252.00 + tax so we have 582.00 + tax mailing at .50 per that is 150.00 total 732.00 + tax to reach 300 BUSINESSES. To follow up, we use sendoutcards.com to create our follow up campaigns for each mailing.

We did it this way because we wanted to reach the top echelon first. On our launch date we will also have an ad in the WSJ (I am setting money aside for this every month).

Start talking to family and friends...it goes further than you know. good luck. Have you thought about starting a blog?

Now you got to the crux of the whole matter--you had to spend marketing money on repairing computers! The first rule for a start up should be: Pay for Insurance before paying yourself. Second is: Keep a job to feed yourself while you get off the ground.

Given those two parameters, was there insurance in place that would have paid for the computer repairs due to the storm damage? You may still be able to file a claim. Also, reduce your marketing budget, just enough to cover that insurance cost.

That was more of what I was looking for. Thank you lighthouse. I am going to work off of what you are saying. Showing lessons learned and such. That is the best way I can find from my research.

DomainDiva thank you for sharing what your business is doing. I found it reassuring since we are planning to do something similar to members of the surrounding chamber of commerce. We also have a flyer going out in the next chamber news letter. That is already setup and paid for.

We also are going to experment a little with indoor digital billboard advertising. It is a fairly new thing but from the other business owners I have talked to it has worked well. We can experment with it for a month at a really low cost.

To answer other question yes we will be reimbursed for some of the money lost to repair.

And our web site is www.ten31studios.com

I would like to thank everyone who contributed and will take more ideas if anyone has any.

Thanks

There is a lot of great advice to you. There has been however, some people advising you (or anyone) to keep a job while getting a small business off the ground.

In all my 23 years of business (running my own and consulting others) I have NEVER seen a business
survive where the owners had jobs outside of the business. Never. Not once.

What you are describing in the primary reason most small businesses fail. Lack of initial capital.

It always takes twice as long and costs twice as much as you thought and sales are slower in coming than your projected.

So, my suggestion would be to review your business plan and have a solid plan that works for you.

Another suggestion is the book, "Instant Income" by Janet Switzer. This book gives you lots of "right now" marketing tips to get cash in the bank. Things that most businesses can do in a week or so.

Jack Canfield and Mark Victor Hansen of the Chicken Soup for the Soul books (who are members of our network) have used Janet Switzers ideas to get them out of situations in the early days.

I just looked it up online and if you buy it online, you get some bonuses so I would suggest that
if you can't wait, just go to any bookstore and buy it.
http://www.instantincome.com/

Good luck.

Have you been able to show your companys commitment regards paying off loans collected and also do have a detailed plan to show the real nature of your companys and its use of capital for profit maximization?all this will be definitely needed by an interested investor.if you can get me with these then i think we could settle for an agreement as to investing in your venture,do send the informations to doncarson7@gmail.com