Startup: Next Steps

Fri, Jan 9, 2009

Yonkly has been out for a couple of months now and is doing very well. We have 1000+ networks already created in every category imaginable from law to physical training to photography to religion – even an adult network.

We have subscription plans and currently offering a discounted annual subscription* to celebrate the new year. For the technically-savvy, we even have the source code up for sale .

What Next?

We have been contemplating the next step in our startup and want to hear your take on it.

Should we look for funding? Angel investors? VCs? Friends and Family?

If yes, then how much and in return for what?

If no, then why and what are the other options?

Do we sell? How much? How and to who?

The Dream

We are a dedicated and highly motivated team of entrepreneurs that want to achieve a 4HWW lifestyle and not work ourselves to the grave. With that in mind is getting investors a good idea?

Exit: A Good Outcome

We think the best outcome for us is having enough paid subscribers to pay our bills and more. A second best outcome is to sell the company and use the money to fund our next idea – we have a ton of ideas and lots of talent (that sounds conceited). Third outcome is to get funding so we can aggressively develop, market and grow the company.

What do you think and why?

* Discounted annual subscriptions of up to 33% off. Create your network, go to the admin control panel and click subscriptions. This is a limited-time offer, so if you don’t see it there, it probably expired.

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Tags: Lifestyle, Startup, Yonkly

PabloBlamirez

Hi Emad,

Just a few of my thoughts on the matter.

If you are looking for funding, then the how much and in exchange for what equity is not your first concern, it is to know exactly what you need the money for, ie. Cost what you need to do to grow the business then seek that much investment, plus a float if you don't want to repeat. If you don't know exactly what you need to spend the cash on and have a very good idea what benefit that cash will buy then there is no point looking to give away a share of your company for it, and no-one in their right mind should give it to you.

If you don't look for funding and want to sell then buyers are going to want to know detailed finacials, such things as operating costs, assets, outstanding debt, turnover and profit. If you're not already making a decent profit already then it may be hard to tempt a buyer, especially with only having been in business for such a short time, a business that isn't making a profit isn't a business.

Also you have described yonkly in the past as a twitter clone (at least initially), so what is the USP of yonkly, how many competitors do you have (if any). If a buyer were to part with their cash and Yonkly started to do reasonably well, how well protected is their investment? How many months would it take for a start-up to grab a share of Yonkly's pie, or for twitter to add equivalent features to exploit it's magnitude of its brand to tempt your subscribers away?

These are all just things to think about, I'm sure there are many more.

Emad Ibrahim