Website Startup Idea

[jpstephens]

Below please find these questions:

Background on the idea: My idea has to do with startups. It's sole purpose will be to help get a startup off of the ground through financing. I believe this is the missing loops that the dot com generation had missed. The idea must be free in order to encourage a high volume of users to use the site daily. The site would use user generated content through the use of classifieds.

The site has more depth but for professional reasons I must keep them private until we go further with our talks.

1) How will I be able to calculate the amount of revenue I can expect for a Fiscal Year? I need this in order to predict how the business will grow. Right now I am assuming that I'll first try to calculate the traffic and then try to determine a % of that traffic that hit my ad's. Is this correct? If so how will I calculate the amount of users my site will get if I haven't built anything and if this is not correct please advise.

2) What is the best method that you can think of for attracting users? I was considering doing a heavy PR campaign that relied upon press releases to major magazines, blogs, and podcasters as well as an invite only campaign that centered on Angel Investors, and VC firms across the United States. Once we get a set % of invites registered we will open the idea up to sign up's in the general public. This will allow us to beta test the idea as well as get a set user base.In addition to the invite scheme, we will also be placing advertisements in Google Adsense and other similar advertising methods.

3) Can you think of any non intrusive paths to income that can feed off of a user database? I would like to stay as far away from charging users as possible, if I have to charge a user I feel it will decrease my success rate significantly as I am installing a hurdle to get a signup.

4) Do you recommend writing up a formal business plan prior to build or vice versa? I have read contrasting opinions about importance. Some have preached a business plan with defined methods of grow are important while others have preached that this may cause paralysis and the method of success is to just start. Where do you stand on this issue and what do you think is the most efficient and well planning way to start?

5) How do you recommend going about a plan with a partner? Do you recommend forming a company right off the bat or waiting till the idea actually takes off?

6) I am without a name for the company still, do you have any trends that I should pay attention to when considering names? I was considering just making up a word such as Keboto.com but I am not sure if that is the way to go. This question I feel is a highly personal one and may be difficult to answer.

7) What sites have you been a part of in the past that you have had similiar obstacles? I am asking just because it may spark a synergy between us and allow your past experience to help.

Thanks for your help so far, please let me know if there is anything more you'd like to know about me or the business plan. Once again I am seeking strategic partners in various areas, and I value the guidance that you may provide.

[jdlk]

I'll take a crack at a few of these.

2) I like the idea of invitations to investors, provided the information you have is worthy to both them and their clients.
The blogosphere is always a powerful tool to get your word out.
If you're focusing specifically on tech related startups then I would suggest googling mISV or uISV and become involved in those community circles.

3) How about thinking the way Tim Ferriss has and only keep the best customers? Maybe limiting your audience isn't as bad as you might think. If the information is worth paying for then there's no reason not to charge.

4) Always have a business plan. It either solidifies your idea or make you realize that it's not worth doing. Either way, a plan is essential!

5) I wouldn't form a company at the initial planning stages, but as soon as you begin incurring costs greater than the cost of creating a business (here $100) then I would suggest forming at that point in time. This is far before your product takes off, but gives you some advantageous tax treatment.