I'm planning a new business venture, a small advertising agency. To finance it I'm considering soliciting investors to "invest" in exchange for a lucrative advertising package (online, mobile, and print) at a 40% discount. With the average cost of advertising I feel this is a win-win partnership.
Tell me, would you invest? If not, what would sweeten the deal? I welcome any feedback.

It sounds like a great idea. I am in no position to invest right now, but if I was, that would peak my interest. I think it depends on how much people invest. If it is a large amount then a 40% discount may not be enough.

Have you though about not charging the investors, but instead asking for a free baner ad on their site or flyer in their store in exchange for your work? I with you much luck with your endeavor.

Leah Oviedo
Mercado del Mundo

This feedback will be direct - you deserve it:

I would not invest at this point.

> it is not an investment. there is no equity ownership here.

> who are you? what is your business plan? I have no idea who you
are and if you have the capability to do what you advertise.

> I'll think you'll turn people off by even using the term "invest" and then stating you'll offer a 40% discount. (it created a negative reaction in my mind) - there's alot of scams on the internet these days so people are wary.

> If I was providing money up front, I would expect a certain number of hours of work for free, and I would expect these hours to correspond to a significant discount over what I would be able to get if I paid for services from an established business with an established track record. this should include a specific number of online or print advertisements where you have done the research in advance to be able to predict the cost to ensure you have everything covered.


> By the way - your investment must be pretty small if you organize it properly. A basic home office setup? (PC, printer, website, etc.). OK maybe $5,000 to do it right.

On the positive side: you're hear asking for feedback so you clearly are looking for what will work and how to strick a win-win deal. I hope my feedback only encourages you to keep thinking - I do like your out-of-the box thinking to find creative ways to finance your startup.

I suggest you take a look at the webpage: http://www.smallbizexcel.com/SmallBusinessPrinciples.html. I'd appreciate your straightforward feedback as well - that's the only way we will learn, grow and be successful.

Keep pushing on and please take this as constructive feedback.

Jeff Moore
jeff@smallbizexcel.com
www.smallbizexcel.com

A real simple way to get it done is instead of just offering blanket advertising in the beggining is to develop a "package deal" that if you sold x amoount of these package deals would finance your business. Using the term invest throws up some red flags so I would stay away from it personally. But one of the best ways to finance a start up is with customers so you are on the right track. Now just narrow it down a bit, do some freebie work if possible to build a portfolio so that people know you can do what you say with confidence.

Good luck on your venture and if you need any more help you may want to check out www.buildabusinessworkshop.com


>I'm planning a new business venture, a small advertising
>agency. To finance it I'm considering soliciting investors to
>"invest" in exchange for a lucrative advertising
>package (online, mobile, and print) at a 40% discount. With
>the average cost of advertising I feel this is a win-win
>partnership.
>Tell me, would you invest? If not, what would sweeten the
>deal? I welcome any feedback.