More From This User
Related Docuements
Make Money With Private Label E-Book Resell Rights
Make Money With Private Label E-book Resell Rights Have you ever wanted to wr...
From jdf39
How to make a million on the net
1 The big idea:
Carol Dukes, a serial internet entrepreneur now launchinghealth and beauty website ThinkNatural.com, always asks herself the samequestion: Why bother? "Whatever your idea, make sure there are some real benefits to be gained by providing the product/service/experience on the internetrather than through conventional channels, and then focus on those benefits." According to one entrepreneur, an internet start-up is like writing a novel.Everyone has one in them. But don't make the mistake of believing you're theonly one thinking of it. Another start-up, Click Mango, is about to launch againstThinkNatural.com.Most of the obvious ideas are already out there. There is no point deciding tolaunch an online book retailer or auction house. If you do pitch yourself againstestablished sites, you need to offer something new or extra, such as betterproducts, better technology or lower prices. When Freeserve launched there werealready hundreds of service providers out there, but it redefined the model by dropping the subscription fee.
2 The team:
The technical know-how can be outsourced, as can web design, butmost venture capitalists will be looking for an IT person in the core team. "I would be looking for someone with commercial experience who could sell and atechnician who could build the site and deliver," says Gerald Brady at venturecapital group 3i. You may not even be the one to run your company, particularly as the businessgrows. Tim Jackson, who launched auction house QXL, effectively sackedhimself. Remember that good people are attracted by the offer of equity in thecompany.
3 The brand:
A brand name that people will remember is vital, and partially accounts for the success of companies such as lastminute.com. Users don't comeacross a website while trundling down the high street - they have to directthemselves to it.
4 The pitch:
In the US they say you should be able to explain your idea in thetime it takes to complete an elevator ride. If you find that difficult, you may nothave thought it through properly. Spend a bit of cash on the presentation to
potential investors - remember the larger ones receive up to 20 a day. "You needto give the impression that you are six months further down the line than youreally are," says one.
5 The networking:
Events such as the weekly get-together First Tuesday ( www.firsttuesday.com) can be useful for meeting potential business partnersand for getting advice from people who are a couple of years ahead of you.Because the industry is still so new, there appears to be a healthy sense of camaraderie. "Most people will meet you for half an hour to dish out advice if youcall them," says Robert Norton of Click Mango. They are also good places to meetlawyers, investors and public relations agencies.
6 The funding:
Many of the entrepreneurs featured in the Guardian e50 gotinitial seed capital to get the site up and running from friends and family. Thecost of getting a website online can be anything from £30,000 to £1m, dependingon how many features it has and the number of people that will have access to your site at any one time.There is a lot of money swilling around from venture capitalists eager to invest inthe next big thing in return for a stake in your company. Some of the mostcommon names are 3i, Apax, NewMedia ventures, Atlas Ventures, Durlacher andBotts & Co. Rupert Murdoch has set up eVentures to help start-ups and Bernard Arnault of LVMH has established Europ@web.It may be worth trying the US, where investors are more used to internet start-ups and are often better at providing advice and appointing experienced peopleto your board. Another alternative is so-called incubators, which provide officespace or equipment in return for a stake.Eva Pascoe, who runs online clothing retailer Zoom, adds a word of warninghowever. "Venture capitalists won't give you money for nothing. They will be onthe phone the next day to find out if their money is OK. They are sharks andthat's their job."
7 The marketing:
As bigger companies turn their sights to the internet they canemploy bigger resources. Word of mouse may not be enough any more to make a website a success. Jungle.com has committed £7.5m to its launch.
8 The graft:
Most net entrepreneurs need little prompting to tell you how hardthey work. Jackson at QXL says: "Show me an internet millionaire and I'll show you someone who has not spent time with their family in a very long while.Running a start-up was the toughest working experience of my life. The hours,the stress, the risk and the uncertainty were almost unbearable."
9 The timing:
Get a move on. Most agree that the window of opportunity tomake your internet fortune is small - the slumbering corporations with ready-made brand names are waking up.
of 00
How to Make a Million on the Net
453 Reads
Info and Rating
| Category: | |
| Rating: | |
| Upload Date: | 06/29/2009 |
| Copyright: | Attribution Non-commercial |
| Tags: |
Leave a Comment