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Once completing business model diagram and confirming assumptions should i develop my service?

Once completing my business model diagram and confirming my assumptions should i develop my service? I intend to create an online payment service, because of this i need to have my service fully functional so it can be audited and regulated by the FCA (financial conduct authority) before i am legally allowed to trade, this in mind i need to first build a core team of developers to create the service. In addition to this i need to consider raising finance to cover my key resources, activities. My real issue is, i will find it hard to start up without funding and i will find it hard to gain funding without having a positive cash flow. Can anybody help me with this situation and provide me with some forms of solution to my issue?

Many thanks

2 Answers

Hi Ben,

What you've described is the problem every entrepreneur faces when they want to start a business. Where do I get the capital to start my business? You're not alone, so don't worry.

What I did is start small with a simple idea (selling tickets to a 1-day workshop on PHP) and used the cashflow from that event to grow. Eventually we grew the business to the size where it could fund the beginning of Treehouse. It took me many years, so that was a tough road. I liked this route because I didn't need to raise outside capital at the beginning.

The scary truth is that no one can answer that question for you. No one knows, including you, if your idea will succeed. The only way to know is to try and see what happens.

Good luck!

Thanks for being a Treehouse Student!

Cheers, Ryan

Hi Ryan,

First of all id like to thankyou for your response. Just so im clear are you suggesting i generate the cash needed to develop and support the business until its self sufficient using third party revenue streams such as trading online or selling my services as a website developer? Would this approach harm the reputation of the company on paper when attempting to obtain investment from VCs in the future? Also would the funds invested from these revenue streams be classed as an investment on my part on the company's balance sheet?

Many thanks

and i hope you more success in the future, your company is extremely helpful and useful.


Would this approach harm the reputation of the company on paper when attempting to obtain investment from VCs in the future?

No, VCs want to see a business that is working and growing. Being profitable is the best weapon you can have :)