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.
#1. "RE: Tell me, would you invest?" In response to Reply # 0
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.
#2. "RE: Tell me, would you invest?" In response to Reply # 0
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.
#3. "RE: Tell me, would you invest?" In response to Reply # 0
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.
>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.