Just because you throw enormous amounts of money at a business idea is not a guarantee it will succeed.
You have an idea to develop a domain name but due to limited funds or experience you decide that an investor is the answer to help accomplish your business goals.
But do you really need an investor? Whether you lack the funds or experience thankfully there are still options.
Before seeking out an investor let’s look at five reasons you may want to reconsider:
1. Your starting budget is probably way off
People either tend to overestimate or underestimate the amount of funds it takes to launch a website. You should be looking to jump start your website idea on whatever funds you have available or whatever funds you can save or borrow from friends and family then make good choices with those funds.
Save money on development by using a well tested CMS such as WordPress or Joomla. Compare printing companies to see who can give you bulk discounts on printing materials. Learn how to do simple tasks such as using FTP and basic SEO. Most importantly, learn a few basic skills that will help you in the future.
Just because you throw enormous amounts of money at a business idea is not a guarantee it will succeed. Throwing money at a bad business idea or even a good business idea with poor execution will likely result in a complete loss.
Investors know this and if they don’t see you risking yourself financially then you are less likely to attract the proper funding you need. If you do not believe in yourself enough to take the financial risk then why should they?
2. Experience can be gained or bought
If you lack the experience to execute your idea then you must be able to either financially support someone who does or you need to gain that experience yourself.
Lack of experience equals poor management and investors want to be assured that you are qualified to handle the basics.
You may also discover that your ideas won’t execute in a realistic setting. Consult with someone who has the experience or work to gain it yourself.
3. Your Idea is probably not that Unique
Few people have ideas so unique that they are innovative and mind blowing which change every day life as we know it. Chances are your idea is a renovation of something else and there are already competitors waiting on arrival the moment the light bulb goes off in your head.
The key is not to completely reinvent the wheel but to improve on the weaknesses and downfalls of a competitor. This is your advantage point and business partners/investors will expect you to show how your idea fulfills a demand, improves a function or outperforms a competitor.
4. You haven’t put in enough risk
But why? If you lack the funds, lack the experience and your idea is off the reality chart then why would an investor want to put forward his or her money into your ducks that are flapping all over the place? An idea is simply not enough to attract what you need and it should not be enough for you either.
The best advice I was ever given is that you stop the excuses and put forth your OWN energy, your OWN money, your OWN risk into your OWN dream and keep working at it until you notice people knocking on your door without you asking.
5. You forgot to begin
If you want your business idea to move from dream to reality the best place to begin is with simple pen and paper. Draft out a plan that outlines whatever weaknesses you have and outlines whatever steps necessary to overcome those weaknesses.
By doing so, your dream has already manifested itself into the physical world except with a more clear, focused and realistic plan on how to move forward….without needing an investor.
This article wasn’t written to discourage anyone from perusing a domain development idea. Rather it’s aimed at people who feel they need an investor or business partner in order to even begin. Unless you have a super awesome domain like Candy.com, the odds of attracting an investor before doing to steps above is slim.
Taking a leap in business is just that. It requires confidence, focus and determination. It demands a spirit that is determined to overcome all obstacles no matter what.
Still not convinced you don’t need an investor to launch your website? Here are 10 more good reasons.