So you have decided that you want to create a startup & its purely online, everything virtual. Let’s say you want to create an application or you’ve a very Plugin that you think will take the wordpress-verse by storm. So now you’ve made your mind & you want to allocate serious time & resources to it. Next step is to generate seed money to fund the idea. Because even if there is some part of the project you want to do yourself, you can’t be only person working on it. Every virtual or online idea needs at least 3-4 core people to work on your idea.
- Marketing Professional
There maybe a situation where you know all of the above but it’s a fact you will be a master in one, you can’t know everything unless, they develop Matrix-esque technology where you can download skills into people’s brain through a wire..
So now that’s out of the way, we’ve established that you will need at least a couple of skilled professionals to work with you on the idea. Now you can have them work for you in exchange for the equity but that’s isn’t viable or most won’t be willing to risk going into an arrangment like this at the very beginning of the project. So either you will have to dive into your savings & pay their wages through that source WHICH IS WRONG! You don’t deplete your savings at the very beginning of your project. So then you find an angel investor, who you present the idea to & in exchange for equity they will provide the seed money to get things going.
Usually people tend to fund the projects themselves that is a two edged sword, it can go either way. On paper that’s a very good idea to fund your project yourself but not everyone have a couple Gs lying around. So what you do is that you find someone who will provide you those Gs.
But then how do you find those people. Well there are different ways. Either you can consult an incuabtor take your idea to them they will provide you a working space either for free or very minimal charges & also help you find an angel investor. Or you can consult the internet community & crowd fund your project. Many people are doing it & it actually works. Plus you also get a public feedback for your idea & if it has any depth people will fund your project.
Crowd funding & enrolling at an incubator are both very viable options to go with. At both places you get to showcase your idea, get to test it with public, get immediate feedback. The difference is that you get mentorship & hands on support as far as logistics are concerned. With crowd funding you take care of the finances & the rest depends on how your execute the entire idea from conception through development & implementation.