I am interested in starting myscond computer software business, but I need some funding, ho do I do this???

Question

This will me my second business I willtry to make. The first business failed because I needed money to get things to progress my business, but didnt have any. I am looking for, not a loan, but money in form of funding where I will NOT have to pay back the money. If anyone can help me this will be great. Thank you

Answer 1

Go to garage.com and learn everything there. Invest in Guy Kawasaki's book, The Art of the Start. Guy was Apple's marketing guy for the first 20 years and founded garage.com.

Keep it lean, keep it focused.

Use XP techniques. Invest in the Pragmatic Programmer's bookshelf, even their seemingly elementary books like Practices of an Agile Developer.

Know your business model well, and know who's successful at it. Use Alexa.com for benchmarking. Watch what's out there.

Know the economics of your business model: have an idea of the strategic implications of your ditribution strategy, your deployment strategy, your service offering, your contracts. Where are you liable, what are your strengths.

Find out how you're going to build buzz. Know the Hollywood model of Teaser > Preview > Release. Use it.

Release fast, release often.

Get these things down, and the financing will come. This is not for the faint of heart. Be realistic as to what you can actually do, how your skills (leadership, technical, analytical, etc.) stack up in the marketplace. Reach out where you can.

Build a presense at LinkedIn. There are investors there, as well as potential clients and employees.

Focus on your value proposition more than your contingencies. Your question smacks of fear and greed. Believe in yourself. Build because you love it. Worry less, produce more.

Invest in The Quiet Mind by David Kuntz and use these practices daily to keep yourself clear and open. Use this clarity to build a better product and a better company.

Invest in Getting Real from the boys at 37Signals.com. Use their successes and failures as shoulders to climb onto.

Feel free to contact me for follow up questions through my Yahoo! Anwers profile.

Good luck

Answer 2

What you are looking for is called equity financing. In order to qualify for equity financing from a venture capital firm, you have aim to create a company that will grow to a multimillion dollar venture within a few years, so that your investors can exit via an initial public offering (IPO). You also have to have a professional management team with a good track record.