| Posted by: DrStrange at May 28, 2006, 1:18 pm | | Topic: Beta Site Forum: Bonus Whores | j1911, I have spent the last 20 years as the CFO of dozens of start-up businesses. I have been in the possition you guys are in too many times.
I hate to be so very pessimistic but I think your business is dead. You need millions of dollars to be a player in the on-line poker business. 15K is enough to properly close up shop and pay your final expenses. Pouring the last $15,000 into the deal is a waste of resources because there is no pathway to success.
You will not find a multi-million dollar investor because the business has nothing of value to give the investor hope of a big profit. The software side of the on-line poker business is ceratinly critical but easy to find. Yummy 'eye candy' graphics and such are not the way to spend resources - ask Paradise Poker about that. Because it is so late in the business cycle, companies trying to break into on-line poker today will need a vast marketing budget. Very vast sums of money. I think an unknown company starting in the on-line poker business today might need $50,000,000 to $100,000,000 in marketing efforts. In the first year. With more money needed next year.
You need to pay for an army of prop players. You need to pour money into $-added events. You need to offer many easy to clear bonues. You need all sorts of clever promotions. All of this to have enough traffic to give the players attacted by your $5,000,000/month advertising campaign a place to sit and play.
Even if you burned through a hundred million dollars, it still might not be enough to get to break-even. But such a marketing budget is really the only way I can figure you could succeed. In light of this, I hope you can see why I think spending another $15,000 is like spitting on a forest fire.
Now, my experience has been free advice given to startup companies is a waste of effort. Hope dies hard. It is painful to admit failure. So I would be shocked if your company doesn't blow the last $15,000 on one last ditch effort to save the project.
Good luck, learn something and then pick yourself up and start over again.
DrStrange |
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