Feb 22, 2011

The Wanna-be Entrepreneurs - Please Don't Apply

I find it amazing how many people want money for a startup venture - and how few of them have any common sense about how (un-)valuable their company really is.

A wine guy wants $5M for a company that has no assets, no income (and no competitors, which supposedly is supposed to turn me on - not so, buddy.  No competitors = no money to be made in that space.  In any case there are ALWAYS competitors - even if it's nothing more than putting up with the status quo.)

Another wants $3M for a dating website - no site built yet, so of course, no money/assets, etc. and the guy has no skills to bring to the table to actually build the site, which I might be able to invest in.  Generous guy though - he's willing to offer me 25% of his company.  Wow.  So, let me get this strait: I give you $3M for you to build a website, and your role will be....?  Oh, I see: overseeing the project.  I can do that myself for $3M, buddy.  Good luck.

I get hundreds of these types of requests each week. 

Luckily, I also find a few nuggets of gold every now and then: people with the experience and skill to have a chance at winning in a startup venture.  Or companies that have a long, steady track record who've come upon hard times who need a workout to get their company turned around without their loosing control.

1 comment:

  1. Dear Sir,
    A niche exists for an inexpensive user friendly website where the wedding industry can advertise and brides can get tips, save money and find vendors. From the beginning of their engagement until their marriage takes place, brides will be coming to our website because of our web presence and grass roots marketing. We have 22 Years experience in marketing to brides including wedding magazines, internet, bridal shows, direct mail,etc. We need start up money for a website. Our concept is well planned with a price 2/3 less than the competitors. We will have sales agents on the street of every major city distributing info for brides to pick up. It will be a One Stop Shop For Brides with planning tips, wedding tools, special offers and wedding professionals. Brides will compile their guest list. When they mail their invitation, they will send our website on the RSVP card. Guests will reply via our website where there will be info for them including where the couple are registered for gifts. If purchased there will be links for Bridal Gift Registries. Our financial projection is very good because of pricing, renewals and new locations. DonnaRJaster@yahoo.com ItsAPerfectWedding.com