How Do people Use Other People's Money for there Business? is it even possible?

Well the traditional way of doing this is by either working on a loan system or given the investors shares of the company or project.

Google and Youtube both started out as partnerships between friends and later sought out private capital.

For example if the best you can do buy going to the bank is 5% return on your savings, offering 10% return to your friends and family, they may consider giving you a couple thousand bucks. For someone with a proven method of capitalizing a company using a share of the profits for a quick cash injection can result in faster and augmented sales.

This scenario results in a win-win situation, where the "warrior" receives and influx of capital to spend on ppc, ads, more articles, etc, which result in faster ROI (return on investment). The "investor" walks away with better benefits than just sticking the money in the bank and getting pennies on their dollars. Depending on how the agreement is structured they also get a piece of a booming business that can be sold or bought back by the "warrior" when the target ROI is met.

The more traditional way would be a simple loan, that can be guaranteed against physical goods (a car, vintage guitar) or if the lender is tech savvy the internet real state that's been invested on.

In any case before making such a decision make sure that you have and exit strategy and have consulted with an attorney.

You really don't want to work hard on a business just to have to give it away because you didn't followed trough on your due diligence when setting up the partnership or loan specifications.

Hope this helps a bit.

Cheers mate,

Jaguar

Check out SCORE or The U.S. Small Business Administration for small business assistance.

Post your question here or PM me with your e-mail. I can receive the messages but I can't send them.

Depends on the software.

In every major city there tends to be what's called "Angel investors" which are professionals in their respective fields who guide by mentoring or sponsorship by cash influx in small companies that have a product or service that is both viable and unique.

However if your application is thoroughly innovative, you can allways apply for start up capital from the respective investing funds that specialize in the software arena.

Another option and the one that is recommended to most beginning entrepreneurs is to either borrow a soft loan to relatives, friends, a good willing rich neighbor or bring them in as partners for B class stock.

Sell a client some work, collecting payment before you do it.

Buy the materials you need for the work with the payment.

EXAMPLE: You need Microsoft Office to do something for your business, like develop short reports you can sell. So you look at the cost of Microsoft Office Home and Student 2010, and it's $149. Off you go to local businesses, and you sell a local business owner a short report for $300. You collect a check, you put it in the bank, you go buy Office, you write the report.

-- similarly --

Get a service that bills you monthly for what you use.

Use the hell out of it, knowing that you won't get the bill for a month.

EXAMPLE: You have a product you just put up for sale. You need traffic. You go into AdWords and set a budget of $500 per day, and Google happily sticks your ad all over the damn place, but doesn't expect your $15,000 until the end of the month - so if your numbers are in place, you make a significant profit and by the time Google wants their money you've got it.

Sure I don't see why not. The important thing to remember here are 2 things:

1. If it's another "ifart" or a better pdf reader or any other generic app, the big investors would probably won't be interested. There has to be something truly unique that you are bringing to the table in order to catch their attention.

2. When you say "outsorce", do you mean hiring someone else to do the programming and developing for you?

If that's the case then it seems all you have is an idea an not much else. Your best option then would be to either generate the necessary money to hire the programming or borrow in order to do so.

Another possibility if you already are proficient at marketing is to generate a joint venture with app developers who have a great product but haven't been able to move due to lack of salesmanship. This way instead of you being a sales associate with only a commission to look for, you can be a part of the team and share the revenue of this and future projects.

As a suggestion try to be more detailed in your questions for me and other readers to get a better vision of your questions.