Not too long ago, an entrepreneur told me about a great 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, then let’s talk, because then the businessman asked; Where is the best place to get start-up capital and financing for such a new business?

He also suggested that he wouldn’t need that much, perhaps enough to have a few machines to get him up and running and proof of concept. Previously, 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, mister startup guru? he asked.

Well this is what I have to say;

Yeah, that’s what all of us businessmen say isn’t it? 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 chicks, my friend.

Also, you would actually need to implement this very quickly, so wouldn’t you need a minimum of 5 units of your own to make money in a regional chain, plus 20 demo units and a Blitz Marketing team to get this to market? Also, I would need to have a team of 2-3 great, take no prisoners, 17 hour days, need for speed, go-getter types. Then various high-tech wizards and friends in the right places to make sure these kiosks stay in sync with all your other components.

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

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 per 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 good salary and look good, I mean skin-in-the-game startup types. $200,000

$625

$340

$200

$130

————

1,265,000

$1.265M

Now, any smart entrepreneur will tell you that you also need to triple the time to get up and running and double the start-up funds, even if the business starts making decent money. So your $1.265 million is now $2.53 million, and your project instead of 12-18 months is now 2-4 years old, before you pay back the money you started with and a decent ROI, or are even viably in the running for an IPO 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 parked with lots of cash, ready to invest, but you would need to have a machine in place and a solid plan. And then you’d have to roll the thing, as if the Mayans were right, and launch it on the market, and accelerate, increasing the speed of light.

Not many people can do that, if you are one of them you would have to prove it or have a track record – money becomes very easy to come by. Now if you move slowly or toss this like a turtle, then someone will take your idea and run with it, be done with it, and be done with it, before you’re out the door. In fact, I bet someone somewhere has already started, the only difference now is the jockey, not the horse, right?

So, Mr. Entrepreneur, how much do you really need to do this, not just 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 this and think about it; seriously, really think about it.