Not long ago, an entrepreneur told me about a fantastic new kiosk business model, and it sounded great, however, having an innovative idea and a good business plan are very different from making it happen. Well, let’s talk, because the businessman asked then; Where is the best place to get the seed capital and financing for a new business of this type?

He also suggested that it wouldn’t need that much, perhaps enough for a few machines to get it up and running and test the concept. Earlier, he had also indicated that the market for such a kiosk business is huge and worth billions in revenue per year. In fact, in construction, it could be more like tens of billions. Well, what do you say, Mr. Guru of startups, he asked?

Well this is what I have to say;

Yes, that is what all entrepreneurs say no? We sit in a billion dollar industry and we don’t need much to get started. But actually, yes, you do, and don’t count the pre-hatched chickens, my friend.

Also, you would actually need to implement this something like this insanely fast, so wouldn’t you need a minimum of 5 units of your own to make money on a regional chain, plus 20 demo units and a Blitz Marketing? equipment to bring this to market? Also, you would need to have a team of 2-3 people, no prisoners, 17 hours a day, need for speed, enterprising types. Then several high-tech wizards and friends in the right places to make sure these kiosks stay in sync with all of your other components.

Okay, let’s put this in perspective and check reality:

1. So let’s say these devices cost between $ 25,000 and $ 25,000 to make the kiosk with graphics, and you need 25 = $ 625,000

2. Plus, your sales team = $ 140,000 a year + $ 300,000 in commissions

3. Office computers ($ 50K) ($ 40K), home office setups, etc. = $ 130K (even at the mega cheap $ 50K)

4. Executives for a year, as long as they’re not lazy idiots who want a great salary and who look good, I mean the enterprising guys with their skin in the game. $ 200,000

$ 625

$ 340

$ 200

$ 130

————

1,265,000

$ 1,265 M

Now any savvy entrepreneur will tell you that you also need to triple the time to get it up and running and double the startup funds, even if the business starts to make decent money. So your $ 1.26 billion is now $ 2.53 million, and your project instead of 12-18 months is now 2-4 years away, before you pay back the money you started with and a decent ROI, or even be in. marches feasibly. for an initial public offering or sale.

Now if you had a couple of machines and a good business plan, then there are people and corporations, maybe even your initial corporate partners stationed with lots of cash, ready to invest, but they would need to have a machine in place, and a plan. solid. And then you would have to unfold the thing, as if the Mayans were right, and launch it on the market and accelerate, growing at the speed of light.

Not many people can do that, if you are one of them, you will have to prove it or have a track record; money becomes very easy to obtain. Now if you move to slow down or unfold it like a turtle, then someone will put your idea into practice, finish it off, and do it, before you walk out the door. In fact, I bet someone somewhere has already started, the only difference now is the rider, not the horse, right?

So Mr. Entrepreneur, how much do you really need to do this, not just to have a nice science project? Seriously, this is where the rubber meets the road, and BS walks, right? Oh, and where is your business plan. Please consider all of this and think about it, seriously, really think about it.