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Getting an idea financed to start a business

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michael1113

Guest
I am trying to start a business in KANSAS and need a lot of direct, personal advice. I have read through numerous postings throughout the message boards here, but I cannot seem to find anything relating to my particular concerns.

I have an idea for a new, unique type of technology for the internet. I have searched the internet and United States Patent and Trademark Office (USPTO) for any pending or applied patents with this type of technology. I cannot find anything. I would hire a patent attorney to research the records, but I am limited on capital to do so. I will explain a little further down.

I have been told over and over again to create a business plan, and have worked with my local SCORE and Small Business Development Center in my community, taken some college classes on business to get a better understanding, but still unable to produce anything to get me started in the way of financing.

Here are my concerns:

According to the patent attorney, I need to develop this technology into a beta prototype; a live, working demo. Once that is complete, the programmers (who will have their name on the patent for development), will create a document stating what is involved in order to create the technology. I don't have enough personal equity (approx $1000 in liquid cash) to hire or subcontract a programmer or team of programmers. I know that once I develop a business plan, I can get investors involved.

Questions:

How do I get investors involved so that I can finance the development of technology? A patent attorney did advise me that a demo prototype with "patent pending" would protect me the best (without financing and programmers, I can't), since some people with money may look at the idea and run with it. I want to be able to describe in detail what it is I am doing, but what do you think?

What can I legally offer to them in exchange for their money? (I would be willing to give a % of equity in the company, but I have NO company! I haven't even set up a DBA account yet.) I would like to keep the programmer on once the business goes, but that is another issue. I will need to recruit management and so forth to get it going. I will not be part of the day to day management, instead I would like to sit in the back seat and keep the ideas coming. There are some people that I know I could raise about $40,000 from, but I have no idea what to offer to them for their funding of the project. I have been told to work with Direct Public Offerings in my state, but I cannot afford to go that route either.

How does one create a business plan with no prior sales or present management? I know that investors sometimes look first and last at the management section, and that a great idea is not enough.

Help! I would appreciate any feedback, and possibly a step by step plan on what I should do next. I will check this board daily for new replies. Thanks again.
 



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