Financing and Marketing Channels By:JoLynna kohler

Alternative Sources of Funding

Angel Investors

Advantages

  • Wide funding range
  • Experienced in the business field and bring that to the start up
  • No-Debt financing
  • No need for collateral of personal assets
  • oThey are free to make investments quickly
  • Wide funding range
  • Experienced in the business field and bring that to the start up
  • No-Debt financing
  • No need for collateral of personal assets
  • They are free to make investments quickly

Disadvantages

  • Some may make demands and try to take control
  • Harder to reach and contact
  • Less structural support
  • Potentially give up share of business, or may want something else in return.
  • Might set higher standards than other investment options

How would an Angel Investor benefit my startup?

Katwalk is looking for a relatively small loan of $30,000 in comparison to a large $500,000 loan making an angel investor the ideal source of outside and speedy funding. There wouldn’t be any worry about interest making this a lower risk option compared to a big bank. Katwalk already has several angel Investors on standby ready to support the business. The only part that makes the company leery is the strings that will be attached and a hands on approach these investors might take.

Personal Funds

Advantages

  • More control over your business
  • You have your business best interest at heart
  • Knowledge of exactly how your money is being spent
  • 100% ownership
  • More discipline

Disadvantages

  • Risk of personal debt
  • Risk of bankruptcy
  • Might not have enough money
  • Slower growth
  • Less contacts

How would using personal funds benefit my startup?

Katwalk’s owners have money saved from the selling of a previously owned company. This savings is what will be used to make sure that there is complete control over the company’s decisions. Giving Katwalk more freedom and the ability to make quicker decisions. This will also eliminate the risk of accumulating interest from a loan and prevent others from making key decisions for the company. This will also insure that the company's direction/vision stay on track and that the business best interest in in the hands of its owners.

New Business Plan Competition

Advantages

  • A set deadline
  • Advice
  • A time to hone skills
  • Network
  • Critical analysis of your business plan
  • Support

Disadvantages

  • Not a guarantee

How would competing business plan competitions benefit my startup?

Although this is not a guarantee Katwalk sees this is a great opportunity to network and potentially get revenue. Katwalk’s owners both enjoy presenting and attending these competitions making it a good fit. If the idea doesn’t win then it will be a great learning opportunity and the business plan will be fine tuned from critique

Marketing Channels

Affiliate Marketing

Katwalk will leverage affiliate marketing by having Kaggel advertise them on our website. Kaggel users will see us ads and hopefully click on them sending them to our website. This will be where data scientist will be encouraged to register with our company and become a contractor. Kaggel has 80,000 data scientist that would be the mass of Katwalk’s contractors.

Guerilla Marketing

Katwalk will be sending personalized boxes to the top ten small creative agencies in the area. In this hand delivered box will be Katwalk swag and a custom invitation for them to enter into a competition against other creative agencies around town. This will be a scavenger hunt where they have to complete a series of tasks and post them on social media. They will compete and as a prize they will win a free premium package with Katwalk.

Online Marketing (Search Engine Optimization, Pay-Per-Click Advertising)

Katwalk will have a blog where there will be updates on the business, potential job opportunities, competitions and and awards. This will help with the company’s optimization and brand awareness. This will be a great way to keep our audience connected with the brand. This is also where the top data scientist of the month will be awarded for their work with recognition and a bonus.

Resources

Fees. (n.d.). Retrieved February 16, 2017, from http://dos.myflorida.com/sunbiz/forms/fees/#llc

Funding Your Startup: 10 Options with Pros and Cons. (n.d.). Retrieved February 16, 2017, from http://thinkdobusiness.com/funding-your-startup-10-options-with-pros-and-cons/

CyberPowerPC - Gamer Ultra Desktop - AMD FX Black Edition-Series - 8GB Memory - AMD Radeon RX 480 - 1TB Hard Drive - Black. (n.d.). Retrieved February 16, 2017, from http://www.bestbuy.com/site/searchpage.jsp?st=pc&_dyncharset=UTF-8&id=pcat17071&type=page&sc=Global&cp=1&nrp=&sp=&qp=&list=n&af=true&iht=y&usc=All%2BCategories&ks=960&keys=keys

The Pros and Cons of Using Angel Investors. (2016, December 14). Retrieved February 16, 2017, from http://quickbooks.intuit.com/r/investors/pros-cons-using-angel-investors-fund-startup/

Funding a Business From Your Own Pocket. (n.d.). Retrieved February 16, 2017, from https://business.tutsplus.com/tutorials/funding-a-business-from-your-own-pocket--cms-19437

How Much Does an Accountant Cost? - CostHelper.com. (n.d.). Retrieved February 16, 2017, from http://smallbusiness.costhelper.com/accountants.html

Cyber Liability Insurance. (n.d.). Retrieved February 16, 2017, from https://www.trustedchoice.com/business-insurance/liability/cyber-risk/

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JoLynna Kohler
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