Rose City Studios has potential to be a very big thing for Portland. It is the hope that one day this becomes something that is commonly talked about among people from Portland- something they are proud of. With my small salary and seemingly every increasing expense list this dream is highly unfeasible alone. That is the great thing about business though, is you do not have to do it alone unless you want to. As I’ve stated before, I love working with people and the though of working with partners and investors excites me more so than makes me cautious.
Funding option #1
There are other mediums available to allow for a prototype to be created. Utilizing Photoshop and other software will allow for templates to be designed and the overall magazine to be laid out. An interesting iPad APP and Photoshop template download company I have looked into is Mag+. Mag+ will allow a flash based version of the magazine to be created to allow for a prototype to be shown to investors. My own personal time and money will have to be dedicated to making the prototype beautiful. This is one option for an investment to make this a reality. Having a few investors come in as partners will hopefully get the venture to the upwards of $120,000 needed to make the magazine a reality.
Funding Option #2
The venture capital option mentioned above is pretty much the only way to make this a reality, but there are other ways to make some initial capital as well- to get the brand name out to PDX. It’s similar to a grassroots movement in which a political force is started from the very bottom and gains ground (enough to be recognized). The idea behind grassroot funding is that people essentially “donate” to your business venture. In our case, we would ask people to donate to our cause in return for a free RCS t-Shirt or even a free 6 month subscription to the magazine. Something very simple for $10. What this will allow though, is people to learn about our business and what we are going to be doing. Also, this will give steam to our venture, giving investors more of a reason to invest. Both options should and will be utilized. Articles can be found all over the internet showing the various steps for getting an investor and what investors look for in start-ups. Just attending local start-up events will allow people to see how simple it can be to create something amazing.
Funding Option #3 – not going to happen
Personal funding, and registering as a sole proprietor with the Federal Business Bureau is not advised in today’s economy. Mainly because, you take 100% of your businesses liability upon yourself. If your business fails, you better have enough money to fund your expenses, or else you will be bankrupt as well. It isn’t smart to do for Rose City Studios because of solely- the cost. I’m 23 years old, and make $45,000 a year after bonuses and before taxes. After expenses like monthly rent, food, gas, and everything else, I have just enough money to get by it seems. Not even close to enough money to fund an annual magazine alone. It will cost $120,000 just to make the magazine (does not factor other business parts). This option is completely ruled out.
From the expense sheet above, you can see the amounts needed to create this annual subscription. The initial investment is steep, but with proper execution, investors will see a positive return on their investment soon after buying in.