Before diving off on your own, you also need to take stock of your relationships with customers, contacts, and, above all, your current employer. Since your product or service is likely to have grown from your work, chances are your employer will become a partner, a customer, or investor. Such alliances can be golden for a startup. That's what Neil A. Iscoe is counting on. He has already raised some money from individuals and hired programmers to create his product.
Most venture capitalists hold onto their wallets until a technology is developed.
And be sure to call a high-tech council in your city or state, and the U.S. Small Business Administration. Lots of government programs provide grants and cheap loans. The National Venture Capital Assn. So offer equity to employees and even suppliers to cut costs. Also, see if you can entice customers to fund your product development.