Is 20k from NAB a good idea?
Elias Bizannes
silky
<elias.b...@gmail.com> wrote:
> What do people think about NAB's young entrepreneur program?
> http://www.nab.com.au/wps/wcm/connect/nab/nab/home/about_us/4/3/2/2/
To me it seems good. Might take a crack at it. Only problem is which
business to point it at :D
> You get a loan of up to 20k. The conditions seem fairly lax, with the
> biggest stumbling block being your age (ie, 30 and under).
> (hat tip to the switched on @Mister_Black who just notified me)
>
> I've got mixed thoughts.
> - 20k is literally startup costs, so you need to be very careful. Need a lot
> of focus on how you spend it.
Sure, but true of any loan.
> - 20k is perfect for a loan. It's not a massive amount, that will send you
> broke if you fail.
Indeed.
> - 20k is something I could raise from family, friends and myself with easier
> terms. I could sell my car and get that - why would I commit to a bank loan
> of only that amount, if I was that serious in starting a business?
I could raise >20k selling my house, but I'm not going to. I need
somewhere to live. I need a way to travel, so I won't sell my car
(probably). You shouldn't need to give up your life to start a
business; and there is no way I could raise anywhere near 20k from
family or friends. You must have rich ones :)
> - Perhaps the real benefit is the terms on the loan, but I am not sure that
> they are that much better than a business loan
Seems better to me, in that they aren't asking for 2 years history.
> At startup weekend, we had several team products in 24 hours with minimal
> costs. Some of the products where bench marked against other efforts that
> individuals had been involved in (like iPhone apps) and the weekend beat it
> by months (and naturally cheaper if you measure opportunity cost).
>
> Thought I'd put it out there and get people's thoughts. I want to find
> solutions to building entrepreneurialism in the Aussie Internet sector, and
> questioning these things helps me understand what we really need for silicon
> beach.
>
> --
> Elias Bizannes
> http://liako.biz
--
noon silky
http://www.boxofgoodfeelings.com/
Elias Bizannes
Sriram Panyam
--
Blog: http://panyam.wordpress.com
URL: http://www.geocities.com/spany_1
silky
<elias.b...@gmail.com> wrote:
> Thanks, good response.
>
> You actually just made me realise *how* I could raise that money. Sure, I've
> got some people in my life who are wealthy. But more interesting is why they
> are wealthy: they are repeat entrepreneurs. People that I would brainstorm
> business ideas with, because even though they've got wealth (not that it's
> obvious), it's how their mind works.
>
> Maybe that's the best solution: surround yourself with like minded people.
Well it's certainly a (IMHO) sad fact of business that an 'easier' way
to be successfully is not to have a good idea necessarily, or even be
a hard worker, but to be around people who can help you commercialise
it. Money and connections go a long way. Specially when money gets you
smart employees.
It suggests that if you want to be in "business", you should not
exactly be working on your application/system/device but out at
parties, meeting people, etc.
From that point of view I don't consider myself anything like a
"businessman" more like "a working guy who wants your money" :D
Bothers me a bit, but that's the way it is.
> It seems like everything goes back to building a strong community that
> supports each others. More alchohol is what we need, not VC's.
Indeed.
dimka
That is a problem common to many people dreaming to start their own
company (myself included). A product, even a brilliant one, doesn't
guarantee a success in business. I am not sure that "to be around
people who can help you to commercialize an idea... is an 'easier' way
to be successful". Is it really that easy and is it enough? Here is a
challenge: imagine you have a wonderful idea, try to convince couple
of your friends that the idea is great, so that they start working
with you or lend you some money! I doubt it is simple.
I'd say that one needs to have a good idea, be able to implement it
(hard work required :), be around people, be able to convince people,
etc, etc. Tons of things.
If one has one of required qualities but not the rest, why not go and
develop them, why not join other people with qualities you are
missing? Business is a collective undertaking after all.
There is a book "The E Myth" by Michael Gerber saying lots of things
about differences between "the technician", "the manager", and "the
entrepreneur". It is a good reading for those who owns a small
business or want to own one.
On Jan 19, 1:51 pm, silky <michaelsli...@gmail.com> wrote:
> On Mon, Jan 19, 2009 at 1:46 PM, Elias Bizannes
>
Chris Saad
Bank loans are also not a good idea for high risk ventures like a software/web startup. It's also the way it's done in the valley.
Friends and Family round is much better - just make sure you're friends and family are clear that it's high risk and they may never see the $ again.
Have an angel lined up as well so you can take it to the next level.
All this is hard in AU because Friends and Family and Angels who understand web business are hard to come by.
Chris
Google Talk: 
Skype: chris.saad
