[trussi]

Friends & Family (F&F) is the quickest and easiest. Spread it out over several people and spread it out in 3 month payments. Make sure you set very specific milestones and a very concrete go-no-go milestone, so you fail as quick as possible.

I'm assuming you're a smart person who can make $100k+ in a real job. If so, add a guarantee that you'll pay back the full borrowed amount within one-two years if you don't make the go-no-go milestone. This option opens up more funding sources. For example, an older relative with savings in the bank near retirement will need that money, but not for a few years. If it were a typical investment scenario where the money was borrowed and if the company failed, the money was not repaid, that person could not invest because they need the money.

The other option is to get a loan from a local business development department. I don't know what ON looks like, but most cities in the US have these types of BD programs that have a goal of creating jobs in the community. Relatively easy to get, just have to jump through a few hurdles. The requirement in my town is the "get rejected by a traditional funding source." Haha...that's a pretty easy thing to do!

I would be very hesitant to receive any money from a professional investor at this point in your startup. You'll have to give away too much of the company and you'll have a boss that has your balls in a vice for the rest of your time at the startup.

Wait for professional investment until your profitable and then it makes way more sense.

Keep us posted!

[norcode]

You hit the nail on the head and I do believe I can probably round up the money from friends and family in the shape of a loan. Especially with the go-no-go system laid out in place ready to go.

The idea of small 3 month increments working towards it is also very appealing.. Thanks for the solid advice.

EDIT I also noticed that you recommend staying away from investment firms in order to preserve control of the company, but I'm honestly a bit scared to grow something like this myself with my limited experience in this area. Do you think my chances for success change at all with a 'professional' at my side?

[trussi]

There's a big difference between investors and a support network.

Very few (any?!) investors are really going to help you with the grunt work of making the business successful.

Never assume that a good investor is a good operations person or a good marketer or a good visionary.

I love working solo. Less distractions. Less wasted time. The only person I have to argue with is myself.

That is not to say I don't have help; I just use strategic help for specific purposes.

I found a bad-ass marketing guy that helps me develop my marketing strategy. I use him when I need him. No equity or long-term commitment.

Same for infrastructure issues and sales strategies.

I have people that hold me accountable to keep me laser-focused.

To answer your specific question about professional investors helping your chances of success, it depends on your definition of success.

If you're trying to build a lifestyle business (highly recommend), then investors will explicitly block your success.

If you're trying to build a high-growth, 3-5 year exit business, then investors might be able to help.

I would still stay away from early-stage investment though. Use professional investment for the growth stage; this is the place where their experience will be directly relevant to your objective (fast, hard growth).

[norcode]

During my trials and tribulations of the past week I came to realize the exact same thing you posted here.

I am now looking at strictly friends and family to get the initial startup capital I need until I can properly valuate what we have here.

Great advice!