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  1. #1
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    E-commerce site funding?

    Hi people, I have been running my own business in my hometown and I’m wishing to offer my services to a wider range of customers, so I decided to get a domain, a server and some IT staff to run an online Business. I have spent some money at the moment and I read on several sites that big businesses spend money by the million! I wonder if I also have to spend this amount of money for a site with some e-commerce tools, member base and some news like <snip> for example. Thanks for your feedback.
    Last edited by Varelse; Jul 22, 2008 at 04:00. Reason: url removed

  2. #2
    Design Addict helix7's Avatar
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    In my personal opinion, yes and no. To some degree it does take some significant funding to launch a major global company, and depending on your goals and expected growth and needs, seeking a funding source might fit your business. That said, in this day and age of cheaper outsourcing, contracting, and speed of turnaround for many of the business functions that used to be so much more costly and time consuming, I have to also think that you can do a lot more with a lot less.

    Does a big bank account help? Certainly (in the hands of a good company leader). Is it required? I'd have to say no. With all the resources and tools available online today, I've seen people use some very creative strategies to get big ideas off the ground at lower costs than one might expect.

  3. #3
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    There are still plenty of people who get a web business started as a one man shop with out any outside investors. So having millions definitely isn't required, but it certainly helps.

    If you're in a position you can hire an IT staff I'd say your already better off than a lot of other people just starting in the online market.
    <snip>
    Want to learn more about processing?
    Check out our E-Commerce Blog

  4. #4
    Formerly known as RockNRollPig Shpigford's Avatar
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    Do everything you can to NOT take outside funding. Turning over a portion of your business or owing people huge sums of money is a great way to run things in to the ground.

    Slow and steady wins the race. Be creative with the money you have and just be patient.

  5. #5
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    Hold on a second... Taking outside funding is often a great idea and often not -- it depends on your goals and your niche. If you want to compete with substantial sites quickly to build a company with high visibility and top-line profit in hopes of becoming an acquisition target it's hard to get there without outside funding. Slow and steady approaches do work for some but they're exactly that... slow, which is not something that makes sense for some business plans/ models. When your business plan calls for a short hold and a planned sale, growing to 50 million with 20&#37; ownership is generally going to be a whole lot better than growing to 5 million with 100% ownership.

    However, on the flip side, if you look at your business as your job and something you want to cultivate, turn into a full time job (or maybe it already is) and work at for the foreseeable future, taking funding makes much less sense unless you have few other options. While most of the big names you hear about are funded or were at some point, a few did manage to escape the process almost entirely (almost everyone sells equity at some point which is essentially funding) and others have held out long enough to have something very attractive to investors.

    The more success you can have and show on your own, the less of the pie you have to give away to get outside money. Equally importantly, the fact that you want money doesn't mean the world will want to give it to you. Venture Capital is a tricky thing that takes a lot of pitching, networking and a degree of luck as well as being in the right place at the right time (i.e. a mobile startup in 2008, video in 2006 or 2007).

    That all said, it sounds like you're just looking to take your local business online which definitely doesn't require a big funded budget or millions in spend. You, like tens of thousands of other businesses, can come online for a few thousand dollars (even less if you're able to do some of the work yourself) and have a presence which you can grow advertising online or offline. Having some level of capital to invest in the right site design, technology, optimization and marketing is ideal but not a requirement. Many businesses work by self funding (make a dollar, put it into the business, make two, put them in, etc....).
    - Ted S

  6. #6
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    Hi all,
    thanks, asking for loan might a good idea for me, yeah, I think I really need a second thought. As the economic condition is not quite good.
    hey, what if I want to be bigger one, besides money, does there has any way to help me to improve?

  7. #7
    SitePoint Wizard silver trophy
    beley's Avatar
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    Grow small.

    Don't take outside funding until/unless you absolutely need to. If you're doing something truly innovative, something completely new, then you may need more than a few people and a lot of time to do it. But 99&#37; of the time you can start small, even just yourself, and grow your business slowly.

    I usually advise people to not take on any unnecessary debt or business partners to get started. It adds a level of complexity and business is hard enough as it is. Start small and worry about building and growing your business.


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