Woodbine*, a brand revitalization agency, announced today that it has not only added a new member to its varied and dynamic team, but that it has advanced its branding and communications capabilities in the areas of web, social and mobile.

Robby Berthume, an entrepreneurial and seasoned digital marketer with international experience in the fields of web design, social media, mobile, branding and advertising, has joined the agency as its new Director of Digital Strategy and Development. Robby will report directly to Woodbine President and CEO, Peter Mitchell, and will oversee digital across all accounts as well as integrate Eclyptix client accounts and resources.

“Woodbine has excelled in digital for many years, but Robby brings something entirely new,” said Mitchell. “Significant web and mobile advancements require having someone in place who can not only help our clients take full advantage of the applications that exist today, but who can help them be prepared to integrate those that are being beta-tested for tomorrow. Robby is that guy.”

Before agency life, Robby was founder and CEO of web development company Eclyptix in Los Angeles. For more than a decade he drove the company and oversaw all business development, strategic planning, creative development and implementation. In 2009, he was named one of the Los Angeles Business Journal’s “Twenty In Their 20s” for his work with companies ranging from tech start-ups to global powerhouses like Heineken, Northrop Grumman, BMW and Wells Fargo, among others.

Robby most recently was with RepEquity in Washington, D.C. as an Account Director, where he was responsible for developing and managing programs that protect, enhance and reshape online reputation and brand image. Clients included UNICEF, eBay, PayPal and the S.C. Department of Commerce. He also was the interactive director of SPARK in Tampa, Fla., where he was responsible for the revitalization of the agency’s interactive department and the integration of digital with traditional media campaigns for clients including David & Goliath, Sweetbay, Visit Florida, and Transitions Championship.

Eclyptix clients and prospects will continue to be handled by Robby Berthume in the capacity of Digital Director for Woodbine, located in Winston Salem, NC.

We end up with a laundry list of goals kept and goals missed, mistakes, and achievements.  We ponder, reflect.  How can I do better?  How can my business be better?  It’s crucial to have this back and forth on a regular basis.  It’s all too often left for New Year’s and quarterly (if that) meetings in a business context.  You might argue with me, spouting your disdain for “self-help” and being preachy and the like.  But seriously.  If you’re not constantly evaluating yourself and your business, you’re letting life live you.  If you’re an entrepreneur, you’re letting your organic opportunities, clients and the market steer.  I don’t know about you, but this isn’t my idea of freedom.   “Riding the waves” is one thing, crashing into the sand because you’re not taking control of your metaphorical surfboard is another, don’t you think?

And here’s where I want to get practical.  I’ve been around too many people, too many clients and too many colleagues that are surfing right along on life’s waves.  If you’re on a surfboard and you enjoy your life and/or your business, rock on dude. But if life and business isn’t exactly what you’d like it to be, maybe it’s time to trade in the surfboard for a ship and for you to step up and be a Captain.

How you become the Captain:

• You realize it may not always be as fun as surfing
• You realize it may sometimes be more fun than surfing, especially in the long run
• You realize when you’re a Captain, you have to inspire, mobilize and lead others
• You realize you can’t have the title of Captain and not steer the rudder
• You have to know how to navigate (there are tools, you know and something called a Captain’s gut
• You have to know when to turn around or jump ship (Titanic, anyone?)
• You have to turn on the engines (you can’t rely on the waves anymore, now you have to propel yourself
• You realize if the ship goes down it’s your fault (not life’s)
• If the ship goes down you’re a Captain and that doesn’t change. You find another ship

- @RobbyBerthume

It’s going to get more honest and hopefully more useful and interesting.  I stay jam-packed in terms of my schedule, but I’ve made it a goal to get out at least one meaningful post a week for our community of fans.

What is Eclyptix doing in the new year?  What are Sam and I doing in the new year?  To put it simply, our goals are lofty, but achievable.  We’re dedicated to growing Eclyptix to the next level, hiring 2-4 more staff members this year, getting at least 3 more retainers with clients we enjoy working with and expanding our mobile/smartphone experience and services.  Additionally, we’re excited about launching our re-designed website and identity in March.  We’ve worked extensively on re-branding ourselves across all of our collateral and are excited about showcasing our new identity and our updated portfolio!  Despite all of this, we’re staying lean and true – continuing our profitability and shunning investors or borrowed money.

In addition to Eclyptix’s growth we are launching our global digital directory at http:///www.digitaldirectory.co in the next week (an announcement will be made upon launch).  We’re incredibly excited about this intuitive, clean and editor-moderated global platform for tech jobs, job seekers, internships, investors, recruiters, freelancers/consultants, vendors, events, projects and gigs.  We love forward to launching new cities, partnering with credible editors and growing this business.  If you’re interested in becoming a city editor, please reach out to info@eclyptix.com.

We’re also partnering with entrepreneur and genuine amazing person Andy Koehn to build a revolutionary iPhone app that helps you discover, share and rate the best sushi, pizza and burgers wherever you’re at.  It’s called Suzabu and it’s coming soon!

We’ve currently got an exciting client roster – a start-up, web-based project management system for lawyers, a robust property social network for a client in London, England, a beverage social network we’ve invested in called ThinkingDrinker.com based in Dublin, Ireland, a newly re-designed WhereToGetEngaged.com (2009 Best of the Best by InStore Magazine) in March, an online consultant directory that is driven by resource publication, user interactive and game dynamics entitled GorillaDiamond.com, a revolutionary social site entitled MyLivePlace.com (details under wraps) and an ongoing relationship with Wise Brother Media.  Additionally, we have several large projects on the verge of commencing and are geared up for successful launches and awards in 2011.  We recently launched http://www.babyprofinder.com and http://www.urbanbonfire.com.

Moving on to Sam and I personally – Sam is currently doing classes in the evenings to become a volunteer LAPD in addition to his role as Managing Partner of Eclyptix.  This means our clients will need to pay their bills or else!  :) But seriously, Sam’s excited about giving back and I’m excited for his contribution to the local LA community (and his ability to protect me, lol).

What’s going on with me?  I recently finished consulting for an ad agency in Tampa, Florida over four months and learned a great deal more from the advertising world.  This, coupled with an extended consulting engagement for a software firm years back and running Eclyptix for ten years alongwith starting up side ventures and helping my clients has really shaped my experience, paradigm and vision for the future.

In my spare time, I am also writing a book entitled “Millennial Entrepreneur”.  More to come on this in the future (I’ll probably branch out a separate blog on my newly registered millennialentrepreneur.com).  I am also going to be writing and blogging more on globalization and offshoring and its effect on economies and, as ridiculous as it may sound to you, world peace.

Those of you that know me know that I also love to travel – I’ve been to 48 states and 11 countries in Europe (primarily the extent of my travels, though I’ve hit the mandatory Caribbean countries and Canada and Mexico) and I’ve recently booked tickets to live in Belgrade, Serbia for four months from March until July.  I will be rotating between Belgrade and Los Angeles, but will be working directly with many of our staff based in our office in Belgrade and I’m excited about working with them as well as further exploring Europe and perhaps Russia and/or Africa.  I have much confidence about the Eastern European Bloc and look forward to learning more culturally and economically about each country and what opportunities exist for my clients and I.

I think that’s a fairly lengthy update for now, I definitely have more to say given the silence over previous months.  I want to talk about what’s happened over the last year and get into more detail on plans for this year alongwith where I will be spending my team and where my team is allocating their resources.  After I feel you and I have caught up, we can move on to more interesting and topical discussions that have been on my heart and head recently.

Join us at Facebook.com/eclyptix and me personally at Facebook.com/berthume or LinkedIn.com/in/RobbyBerthume!  Until next time…. be well!

Blueprinting your Social Network

First, try to describe your concept in one sentence with a few keywords.  The thinking here is that you should be able to describe your web start-up in one succinct sentence so that you can then stick to this core concept when fleshing out the details of your site.  Remember that oftentimes the more narrow in focus and easy to understand your start-up is the more potential it has to go viral. Think Google.  People won’t talk about it if they don’t know what it is or why it would benefit them quickly enough.

As an example, I am currently working with team to launch our start-up “social directory” SurviveDivorce.com.  In thinking about the concept, I have narrowed the description to: “SurviveDivorce.com is a social directory connecting persons going through divorce with professionals, resources and other’s at different stages in the divorce process.”  Notice I have stayed away from any fluff words and only spoke about the core utility of the site.  Fluff can come later.  Also, there are important features left out of this sentence.  For instance, one of the features we’re incorporating into the site is a “stealth mode” for users to give them ultimate privacy while they use SurviveDivorce.com to the fullest.  This will be a differentiating feature, but people aren’t going to come to the site for privacy, they’re coming for utility.  Privacy is simply a way we can earn their trust and time and differentiate from less-conscious competitors. Privacy is a feature we’ll describe in our Blueprint.

Now that you’ve brainstormed and written your concept sentence, it’s time to flesh that out to a basic outline.  And I do mean basic.  Write down the main features you are initially envisioning for the site.  Use bullet points.   This feature-set is sure to change, so just get everything on paper at this point.  Now that you’re ideas are on paper, it’s time to make a list of your competitors.

The reason I suggest analyzing the competition as such an early stage is because the web is a pretty fast-paced and innovative environment.  Before you spend hours and hours planning your concept without regard to what’s on the market, take the time now to see what’s out there.  Create a spreadsheet and do some creative Googling.  Find as many competitive websites as possible, focusing on direct competitors.  Add the URLs to your spreadsheet along with a brief description on the site.  Note its design, features, community size, length of time in business, strategy, and pricing to start with.  The goal is to be able to easily compare competitors as well as use this information to determine who the major players are and how business is going for them.

It’s also key in my opinion and based on experience to not marry your idea before you date it for a while.  I see many entrepreneurs so in love and committed with their first idea that they are blind to reality.  You must think of the business planning phase as test driving a car or going on a date.   Your goal is to flesh out your idea, check the facts and then make an educated decision on how to proceed.  Don’t be afraid to abandon ship if you don’t like what you find or don’t feel as comfortable as you did before you realized Goliath was already present in the marketplace.

Next time we’ll talk about analyzing your target market, further fleshing out the website concept in the form of a blueprint and building financial projections.

Within my role as CEO for Eclyptix, we receive dozens of social network leads a month and the industry continues to grow.  Despite the rough economic climate and wary investors, entrepreneurs appear to be resiliently breaking through and innovating in order to take their idea to reality.  I’m not going to lie: there are a lot of bad ideas out there.  Without getting into specifics, let’s just say a lot of prospects I feel are doomed from the start.  But a small percentage of these prospects have a solid idea, a strategic plan and an initial budget to do things the right way.  And I’ve gotten better at identifying the things that set apart the successful ventures from the ones doomed to fail.

Because all social networks are not the same, it’s important as a first step to think about what kind of social network you are looking to build.  You essentially have two initial options to consider:

1) Use a turnkey platform or provider that is quickly deployable and has minimal costs like Ning, Pringo Networks, KickApps, etc… (typically hosted solutions, where you are “leasing” the website)

2) Have a social network built “from scratch” that is built specifically to meet your objectives and you own the source code.

Don’t worry, you don’t have to decide right now.  First, you need to blueprint your social network concept and then you can decide what the best solution is.  So next post we’ll break down how to blueprint your social networking website.

Making the pitch
Having a killer pitch is of utmost importance in securing investors for your project.  It’s imperative you have a business plan, marketing plan and projections.  It’s important to have an engaging executive summary.  A project blueprint for the website is critical to investors understanding and feeling comfortable with the launch strategy.  A logo for your business/website and any mocked up pages from the website helps tremendously.  Essentially, the further along in the process of building out a successful website, the better off you are. The more you can provide in the way of blueprints, designs, coded pages, functional sections, or a beta version the higher your chances of landing investors are.

It’s really quite simple.  Humor me and pretend for a minute that you are a multi-millionaire investor.  You’re successful, busy and used to people wanting your money.  You would probably like to review ideas where they are as tangible as possible – where you can visualize how it will be built and what the outcome will look like.  You want to minimize risk, maximize return and make sure you’re getting in bed with someone who isn’t going to lose you money.  What would you bring yourself if you were an investor?  Here’s what I recommend preparing:

• Executive Summary
• PowerPoint Presentation with no more than 15 slides highlighting the investment opportunity
• Introduction E-mail
• Bio for Investment/Business Website Profiles
• Business Plan w/Financial Projections and Works Cited (research!)
• Marketing Plan
• Project Blueprint
• Any Completed Web Page Designs or Work
• Google Yourself and Your Website and Your Company
• Create bios on popular social networking services, business websites, etc…
• Create business/website profiles on popular social networking services, directories, etc…
• Begin blogging
• Have a splash page on your website until the beta is launched (provide info on your start-up and collect e-mails)

Recommended Resources

• http://www.inc.com/guides/finance/20797.html
• http://www.entrepreneur.com/howto/raisemoney/index.html
• http://smallbusiness.blogs.cnnmoney.cnn.com/category/raising-money/
• http://mixergy.com
• http://quicksprout.com
• http://www.fastcompany.com/tag/investment
• http://socialnetworkingwatch.com
• http://www.mashable.com
• http://www.jasonnation.com
• http://www.techzulu.com
• http://www.techcrunch.com

“Seeking Financing” – a compilation of notes and resources from around the web

Finding the moolah
“Roughly speaking, investments break down into two forms: debt and equity. You take on debt when you borrow money from a lender, and pay interest on that investment. You are compelled to repay the money with interest over time. Or, you can take on an equity investment — in which you sell a portion of the company to an investor in return for cash or something else of value. Each source carries advantages and disadvantages. Consider them well before making choices, for finance decisions are hard to undo. It’s not enough to find lenders and investors; you have to pick the right ones. Try to find investors who bring more than cash to the table. Look for supporters who can help you with financial advice, technical assistance, or who can connect you with key customers. Seek patient capital from a sage who can listen to your problems over breakfast and set you straight by the time you reach the offices. ‘Capital raising should be an extending circle,’ says Scott Shaw, founder of the Austin Grill, a successful Tex-Mex restaurant in Washington, DC. He explains that you start small with an immediate group of investors who can help you directly. Then you gradually build on that platform, seeking larger amounts from people you come to meet and with whom you will probably have a more formal relationship. Shaw also counsels that you “listen to the capital markets.” They may be trying to tell you something about your venture. If you’re having trouble raising money, there may be a very good reason why. If you are going out to seek capital — and the associated advice — from people who may have more experience, it’s a good idea to listen to them! They may know something you don’t.”

Bank Loans

“SBA Express was launched in yet another effort to lessen the paperwork hassles attached to applying for a Small Business Administration-backed loan. Bank-qualified business owners can borrow up to $150,000 without going through the standard SBA application process and are guaranteed a loan decision within 36 hours. Since the loans are guaranteed by the government agency only at 50% of their face value, many of the 500 or so eligible “preferred” lenders (which include commercial banks and other financing institutions with good track records on their other SBA loans) have yet to sign on. To track down active lenders in your area, contact your SBA district office, or visit the agency’s Web site. SBA also offers normal loans and microloans through local banks. President Barack Obama signed legislation last week that will pump another $80 million of stimulus money into the Small Business Administration’s lending programs. That sum may not sound like much, but the SBA says this added funding will support nearly $3 billion in loans to America’s small businesses.”

“Community banks, the antithesis of all those huge financial institutions that are merging and acquiring themselves into the deal-making stratosphere, offer the best (and maybe the only) chance for many small or young companies to start building a banking relationship. While the small banks may have fewer products than the giants do, their advantage to entrepreneurs is their flexibility. To locate possible lenders in your region, contact the Independent Bankers Association of America, which can provide leads to more than 5,000 community banks. You can visit the association’s Web site, call the group at 800-422-8439, or reach it by E-mail.”

“National banks — the (self)chosen few is the way we like to think of that select group of national banks that do more than just talk about their interest in backing start-up companies. Their loan officers are out there–even in today’s chilly credit climate–aggressively launching new products and actually approving deals. Silicon Valley Bank perennially crops up on this list; so, increasingly, do Chase and Fleet Bank. (One caveat: companies with less than big-scale growth plans need not apply.) To tell if a big bank belongs to this limited group, look for new products that demonstrate a commitment to today’s credit challenges.”

“Asset-backed borrowing may be the only game in town for many entrepreneurial companies, as long as bankers keep buzzing about the need for “credit-risk premiums,” a “flight to quality,” and other euphemisms for reducing their risk. If that is the way your company must go, so be it. But don’t think in narrow terms. An asset-backed loan can be anything from a home-equity line of credit or an SBA deal backed up by your kids’ college-savings account, to those pricey, but ever-handy, transactions tied to accounts receivable, contracts, or inventory. A very good source of information is GE Capital’s Guide to Asset Based Lending. (Call 800-572-1838 to obtain a free copy.) You may want to skip the 6-page sales pitch about the company’s various business lines, but the 19-page glossary is a must-read.”

“Microloans, which typically are under $35k can make sense for certain situations. We recommend considering this early-stage option if a small infusion of capital could make a difference to your venture’s cash flow or growth-related activities.”

“Third-party loan guarantees typically require that a relative or close friend cosign a credit-line agreement when a company’s credit history (or that of its owner) leaves something to be desired. But with personal indebtedness significantly on the rise, entrepreneurs may have trouble finding among their nearest and dearest someone who is both willing to cosign and is also deemed creditworthy by prospective bankers.”

“A new breed of financing intermediary has stepped forward that will consider cosigning your corporate credit line for the right price (either a fixed fee or a percentage of the face value of the loan). Since these guarantors will be liable for any borrowing you can’t repay, expect a close evaluation of your financial credentials. Still, their standards are probably more flexible than a banker’s. For contacts within this relatively new profession, network through your accounting, legal, or financial advisers.”

Nonbank Creditors

“Credit cards have always been the mainstay of the small-business owner. But these days any entrepreneur who relies on his or her credit-card company for just, well, credit cards is walking around blindfolded. Some of the perks, like yet another free on-line news service for business owners, don’t exactly ring our bell. What we do like, though, is the range of unsecured credit-line alternatives offered by both Visa and American Express. If bankers slam the door in your face, contact all the major credit-card suppliers to compare prices and options. As you would with a bank, make sure you’ll have opportunities to increase your borrowing limit  once you’ve proved that your company is a good customer. If you don’t really care about the credit-card part of the equation, consider a conversation with Merrill Lynch, whose portfolio of small-business credit products looks good these days. We particularly like a working-capital revolving line of credit, WCMA Reducing Revolver Loan, that’s competitive with what most banks could–but wouldn’t–offer many fast-growing companies. Also you can consider tapping personal credit cards for your business financing needs as well.”

“On-line credit search engines are practically a dime a dozen. (OK, so we exaggerate. But so do many of them.) The best are the ones that guarantee confidentiality, don’t charge an up-front fee, and can point to successful results in hooking up companies like yours with legitimate lenders. One site that we like (www.getsmart.com) launched a business-financing section. It’s affiliated with 17 banking and nonbanking lenders, including American Express, Heller Financial, and First Union.”

Family & Friends

“Tapping personal ties to raise cash for a company that’s either too new or too small to get financing elsewhere is an age-old formula that still makes sense. But here’s one risk too big to ignore in today’s highly competitive capital marketplace: if you don’t follow professional standards in structuring and documenting “F&F” loans or equity arrangements, your sloppiness will likely come back to haunt you.vThat’s because if and when your company grows to the point at which it can credibly approach banks or professional investors for funds, their lawyers will examine your corporate and capitalization structure with a fine-tooth comb. Even in the best of times, the lenders would delay the closing of any deal until errors or inconsistencies got cleaned up. In today’s market that could mean you’d wind up losing opportunities altogether. Paying a lawyer now is a cheap way of avoiding problems later.”

These are good articles on the subject:

• http://www.entrepreneur.com/money/financing/loansfromfriendsandfamily/article51542.html
• http://www.nolo.com/legal-encyclopedia/article-29499.html

Private Equity

“Performance-oriented, flexible terms can make or break a deal in these risk-averse times, especially for a private-equity investor who is weighing the most attractive opportunities that have been around in years. One thing that can help lure investors is the so-called clawback technique. A financing deal starts off with one set of terms–your equity investor receives a certain percentage of stock in return for a specified capital investment–but those terms can shift, depending on how successful you are in meeting agreed-upon goals according to a fixed set of deadlines. “What I tell business owners all the time is ‘Who cares how much stock you give away going into the deal as long as you maintain control? If you can get a good chunk of it back based upon your performance results, that’s what matters,” says A. Gordon Tunstall, a financing consultant and intermediary in Tampa. ‘Meanwhile, these kinds of terms increase the comfort level of private investors in times like these.’ ”

“The wide world of the Internet still offers a mixed bag for the corporate seeker of capital. Once you start visiting financing Web sites (which seem to proliferate endlessly), you can find yourself in a black hole–unable to turn off the computer but also unable to come up with any cash. Still, cynical though we may be, we recommend that you check out some of the best sites, which offer business owners the chance to research a wide range of funding options. Among the sites we like is www.vfinance.com, which provides information on more than 200 venture-capital firms, as well as frequent news updates about the industry.”  The following websites are other valuable sources of information for finding venture capital and angel investment:

• http://www.gobignetwork.com/funding/
• http://angelsoft.net/
• http://www.inc.com/articles/2001/09/23461.html
• http://www.mycoplan.com/
• http://www.fundingpost.com/alt1/index.asp
• http://investor.fundinguniverse.com/
• http://www.go4funding.com/funding.aspx
• http://www.findthatmoney.com/index.php?file=index
• http://www.gaebler.com/venture-capital-firms.htm
• http://www.ladigitaldirectory.com
• http://www.entrepreneur.com/vc100/stage/early.html

Corporate Support / Partnerships

“Strategic partnerships aren’t just a much-talked-about trend; they’re the best alternative for many companies that find themselves either shut out of traditional financing deals or unwilling to swallow the equity valuations or interest charges required to make those deals happen. Cash infusions connected with strategic partnerships are usually much smaller than they might have been with a traditional financing deal (and sometimes investments aren’t a factor at all). When a partnership’s synergy clicks, however, the resulting growth can often yield far greater capital options later on.”

Networking/Connections

It’s important to tap as many connections as possible within your current network as well as grow your network.  In Greater LA, there are many groups that you can join on Facebook in order to get event invites and be able to network with group members.  I recommend joining the following as well as searching for other Facebook and LinkedIn groups.  I also recommend searching event calendars (e.g. on Mashable) and adding other tech / business related groups in other geographic markets.

1. Tech Coast Venture Network (http://www.tcvn.org/)
2. Digital LA (http://www.facebook.com/group.php?gid=8965717386)
3. Startup LA (http://www.facebook.com/group.php?gid=20956644014)
4. Black Card Circle (http://www.facebook.com/group.php?gid=4783092010)
5. Social Media Club (http://www.facebook.com/group.php?gid=18295985805)
6. Media 2.0 Workgroup (http://www.facebook.com/group.php?gid=2460411391)
7. Social Networking Professionals (http://www.facebook.com/group.php?gid=30068098851)
8. LATechConnect (http://www.facebook.com/group.php?gid=6104555993)
9. BlogWorld (http://www.facebook.com/group.php?gid=5607245325)
10. LA Mixers (http://www.facebook.com/group.php?gid=8731106939)
11. TechZulu (http://www.facebook.com/group.php?gid=12652861964)
12. Social Networking Conference (http://www.facebook.com/group.php?gid=25413307804)
13. Twiistup (http://www.facebook.com/group.php?gid=2438232599)
14. Web 2.0 (Entrepeneurs) (http://www.facebook.com/group.php?gid=2208499259)
15. Social Networking Industry Group (http://www.facebook.com/group.php?gid=25413307804)
16. LA Web Professionals Group (http://www.facebook.com/group.php?gid=108772512008)
17. San Diego Business LinkedIn (http://www.facebook.com/group.php?gid=58673085404&ref=search&sid=55700960.995457968..1&v=info)
18. San Diego Business Network (http://www.facebook.com/group.php?gid=36467713888&ref=search&sid=55700960.995457968..1)
19. Top 1000 Professionals of San Diego (http://www.facebook.com/group.php?gid=295949469082&ref=search&sid=55700960.995457968..1)
20. OC Investors (http://www.facebook.com/group.php?gid=43539340787&ref=search&sid=55700960.3741734922..1)

Events

There are quite a few events in the Southern California region to network and meet investors and people that know investors.  Obviously Silicon Valley and the Bay Area is a strong tech hub as well.  There are also valuable tech and business events in other tech cities like New York, Seattle, Vancouver, Las Vegas, etc… Attend as many as you can, at least one local event per month.  You must be vigilante in the beginning though to get out there and attend and try and meet the right people. There are local and national calendars and resources like the Mashable social networking event guide (http://mashable.com/category/events/).  Read top industry blogs like TechCrunch and Mashable and you can stay abreast of industry happenings.  There are social networking conferences and venture capital summits.  There is SXSW and Blog World Expo.  In LA, do’t forget Twiistup, Social Media Club and Digital LA events. The easiest way to get in the loop with regards to tech, social media, business and investor events is to do lots of Google searches, find well connected people on Facebook and see what events they attend or recommend, and keep tabs on event calendars.

Crowdfunding/Peerlending

“Crowdfunding/peerlending is a newer trend where you can raise money from other people.  Prosper.com and Kickstarter.com are good examples.  In one interesting crowdfunding example, “Like a homespun IPO, CatwalkGenius.com helps hoi polloi bankroll upstart fashion designers. British documentary filmmaker Franny Armstrong raised more than £450,000 ($815,000) to finance–and work full time on–The Age of Stupid, which she hopes will premiere at the Sundance Film Festival in January. People who gave 20 quid ($35) got a credit on the film’s website; those who gave £5,000 ($9,000) and up will get a percentage of the profits, if there are any.”  This logic would be interesting to consider for GD.  Perhaps pre-sell annual and lifetime memberships, newsletter spots, etc…?  Or having “founding members” or “contributing sponsors”?”

Investment Consultants

“There are many companies that act as investment consultants.  They help you package your concept, give you strategic advice and connect you with investors. Capital intermediaries have been around a long time, and we’re the first to admit that they’re a mixed bag. Still, a skillful intermediary with valuable contacts at a wide range of capital sources can be, simply, the best friend a business owner has. But do your homework. Talk to absolutely every businessperson you respect (including your team of advisers) and ask each one to recommend an intermediary who typically handles companies similar to yours in size and industry.vWhen you’ve generated a short list, ask each intermediary for 10 business references, including satisfied customers, bankers, lawyers, and so forth. Make sure the references include names you recognize (and don’t hesitate to check out any that strike you as dubious). We’d like to recommend that you stay away from intermediaries who charge up-front fees, since that’s a typical scam technique, but we won’t because there are some very credible and successful intermediaries who insist on them.”

Alumni

One option to consider is tapping into your Alumni network for investment.  Check with your local chapter, hit up homecoming, and/or ping your former professors and classmates.

Planning and forecasting
It’s absolutely imperative to have a carefully thought out, researched and professional master business plan for your website.  Equally important is a marketing plan.   It’s also very important that financial projections and monetization strategy is incorporated into your business plan.  Investors want to see your concept fleshed out, stacked against the competitive marketplace and thoroughly analyzed.  The more information and context you can provide them, the more likely you are to ease any concerns they may have and preempt their otherwise imminent questions.  If you don’t have a master business plan, marketing plan and/or financial projections you can hit the ground running by using one of these tools:

• Mac Users: JIAN Business Plan Builder
• Windows Users: Business Plan Pro

Make sure your plans incorporate extensive and credible research, are carefully constructed and organized and give investors the information they need to make an educated and comfortable decision.

Blueprinting & showcasing your website concept
Just as important as a business plan is a thorough Project Blueprint for your website.  A project blueprint is the road map to building your website and should detail every aspect of every module within the site.  A project blueprint is most effective when produced by a qualified web design/development company or consultant in conjunction with your vision for the site.  This creates synergy ensuring that the planned website is thoroughly researched, discussed and documented based on different expert opinions.  Let no stones go unturned! A project blueprint consists of your website broken down into modules with each module thoroughly discussed and planned as well as wireframes created for layout purposes.

Beyond the project blueprint, the further you can progress into your website project before engaging investors, the better.  The more you can provide, the better as it will build investor context and confidence.  If you can design half of the pages without investors, do it!  The more you have to show to them as “proof of concept” the better.  Ideally you will at least have the project blueprint, logo and web page designs ready so the only thing left would be coding, development and launch of the beta version.  Of course, if you can advance further into the project without their help, do it!

I do want to note that many people can only finance so much on their own so they may go with a lower quality firm for the work in order to have more proof of concept for investors.  Though sometimes building a lower quality, cheaper website to show its potential can work, it oftentimes backfires.  You know what they say, “put your best foot forward.”  If you have analyzed the market opportunity and are confident in your website, you should make every effort possible to ensure you can make a high quality site and afford to market it properly.  Otherwise, it could all be for moot. Additionally, if you go with a cheaper website build-out initially, it can backfire and cost you time and money later when it has to be rebuilt to scale.

Building your bench
Just a brief note here that every business person knows the importance of a CPA and lawyer.  Even if you can’t afford to use them that much, do some research and find a good CPA and a strong lawyer.  This can also make you look more prepared to investors, though they may end up requesting a new CPA or lawyer!

If you’re building a website, it’s also imperative to thoroughly research and find a solid web development company, Internet marketing company and hosting company.  These three vendors will become your allies in building out your dreams.  Keep this in mind when choosing them.

Finally, it’s a good idea to recruit a few advisors, even if you’re not forming a formal board for your company.  Find some solid and credible advisors to add credibility to your project and give you every shot at being successful.

When viewing companies and websites to potentially invest in, investors are looking for a variety of different things. They want to see that your website or concept is thoroughly researched, protected and as close to market as possible. The more of the “legwork” you take care of before you bring on investors, the better. Not only will this demonstrate your ability to effectively plan and account for the many aspects of running a successful business, it can protect your intellectual capital, ideas and even discussions with investors themselves. The fact of the matter is: the more organized and legitimate your business is, the more it’s going to be taken seriously. So let’s break it down:

1. Choose a business structure that is best for your current or planned situation and file within your desired state (http://www.irs.gov/businesses/small/article/0,,id=98359,00.html)
2. Register your “Doing Business As” if required based on your business structure and state (http://www.business.gov/register/business-name/dba.html)
3. Apply for an EIN (Employer Identification Number) (http://www.irs.gov/businesses/small/article/0,,id=98350,00.html)
4. Apply for a city business license as necessary based on your location
5. Apply for any other licenses needed based on your location (e.g. work from home permit)
6. Register your name and logo for trademark protection (http://www.uspto.gov/trademarks/index.jsp)
7. Register your domain name for at least five years
 (http://www.godaddy.com)
8. Get a D&B D-U-N-S number to begin establishing business credit 
(http://smallbusiness.dnb.com/establish-your-business/12334338-1.html?cm_mmc=google-_-keyword-_-online-_-d-u-n-s&LID=13619855)
9. Open a business checking account and credit card (choose your bank carefully based on their business products and services and with attention to their business financing if needed)
10. Utilize QuickBooks and keep careful records (it’s imperative to carefully notate every expense and all important details on your business for the sake of future taxes, investment, valuation, etc.)
11. Customize a Non-Disclosure Agreement (NDA) for discussions with investors, friends, vendors, etc…

Coming Next: Part 2: Planning & Forecasting