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Startup With Very Little Money – What Do You Do?

October 5, 2010

Startup Tip #10 Hardly Any Money – No Problem

So, you have a killer Internet idea, a huge market for your idea, a team and very little money.  What do you do? For less than $1,000, you can position your team and company for angel investment.  Here are ten steps for success.

1. Confidentially bounce your idea off some mentors.  If all mentors think it has legs, move forward.

2. Contribute value by collaborating to build a demo and/or iPhone app. Expand your founding team to include needed developer talent.

3. Get some basic legal advice. ($250)

4. Pick a name and register an available domain. ($15)

5. Organize an entity and issue some founders stock. ($400)

6. Release the app. ($99)

7. Write up your story ending with what you need (who, what, why, when, where and how). Don’t write a business plan. Don’t ask for more than $250,000 and be prepared to give up at least 20% equity to get initial funding.

8. Get someone who knows Dave McClure, Chris Sacca or Jason Calacanis to introduce you to one of these fine gentlemen, so you can convey your story. It should not take more than 3 pages or 3 minutes to tell your story. Why McClure, Sacca and Calacanis?  These guys have been where you are at and succeeded.  They have momentum and money, but more importantly, they have a network of people who will help you succeed and win. The network is 1000x more valuable than capital, but you need both.

9. Dedicate, focus and work as hard as you have ever worked.

10. Keep a positive attitude (no matter what challenges you face).  Remember “ACE” – Attitude Changes Everything.

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