Development finance required for web-based education resource...

[tkessex]

Having heeded the advice of a number of forum contributors, whilst admittedly digesting a fair old slice of humble pie, I have now separated the graphic design and business services operation into two separate companies. I am content to allow them to fund their own growth, even if progression will be a little slower than was planned.

Instead I have decided to bring the development and implementation of several other projects forward, beginning with a subscription-based internet resource for students - right through from KS1 to university goers. Access will be granted (for a fee) to unique, curriculum-specific, content with the hope of reinforcing school/college lessons. There will also be a number of other facilities, allowing students to help each other with questions through a bespoke communication portal and providing access to teachers/lecturers at home.

The formation of the content is already under way, with a number of teachers contributing and offering free advertising through their school (one of my best friends, my cousin's girlfriend and my mother are all teachers, which made finding contributors extremely easy).

Projections - based on subscriptions, advertising revenue and a proposed affiliate scheme with a national stationery company - suggest a first year turnover in the region of £150,000, rising to £350,000 and £800,000 in years two and three.

At this stage, the development of the website is all important and, as it will be custom built throughout (from a unique content management system and database, to integration with a merchant account) a price of approximately £5,000 has been quoted bu thruSITES(.com).

I would like to put an agreement in place whereby the loan is repaid, plus an agreed amount of interest, after a period of 12 months, with the option of offering a (pre-set) equity share in the website should repayment be difficult. I would take the opportunity to say that the latter option is merely a saftey net, and fully repayment of the loan and associated interest should not be an issue.

[tkessex]

Many thanks to everyone for the 50+ views and plethora of comments.

Funding has now been sourced.

[peterjhale]

well done on splitting your business and the very best of luck with it