How much capital should I raise if I want to start a social networking website with basic Web 2.0 functionality?
By Lena West •
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I'm a young entrepreneur interested in an online social networking venture. How much capital should I be expected to raise if I want the site to have basic Web 2.0 functionality (profiles, blogs,uploading of photos)? I currently have a strong idea and a simple business plan. The site will allow users to upload data and share data amongst users. I've mapped a basic framework for the content and visual representation of the site and have just recently found a developer. I would like to know what else I should present to the developer and what I should expect as far as general pricing for creating a dynamic site with web 2.0 functioning.
When building a Web 2.0 enabled website, you want to make sure that you have done a functionality assessment. Depending on whom you work with and their level of experience, you can expect to pay anywhere from $5-25K for this.� It's a document that includes everything that your website is supposed to do in terms of functionality on the front-end and back-end.
Once you have that, you might want to develop what's called a wireframe that allows anyone looking at your plan - say an investor - to see your website layout and how information will flow on your site.
I can't tell you how much capital to raise because I don't know the scope of what you're planning. My advice is to find an industry expert and ask them to review your idea or offer and consult with them for half a day to get their input.
Good luck!
